diff --git a/surfsense_desktop/src/modules/agent-filesystem.ts b/surfsense_desktop/src/modules/agent-filesystem.ts
new file mode 100644
index 000000000..44f12a465
--- /dev/null
+++ b/surfsense_desktop/src/modules/agent-filesystem.ts
@@ -0,0 +1,74 @@
+import { app, dialog } from "electron";
+import { mkdir, readFile, writeFile } from "node:fs/promises";
+import { dirname, join } from "node:path";
+
+export type AgentFilesystemMode = "cloud" | "desktop_local_folder";
+
+export interface AgentFilesystemSettings {
+	mode: AgentFilesystemMode;
+	localRootPath: string | null;
+	updatedAt: string;
+}
+
+const SETTINGS_FILENAME = "agent-filesystem-settings.json";
+
+function getSettingsPath(): string {
+	return join(app.getPath("userData"), SETTINGS_FILENAME);
+}
+
+function getDefaultSettings(): AgentFilesystemSettings {
+	return {
+		mode: "cloud",
+		localRootPath: null,
+		updatedAt: new Date().toISOString(),
+	};
+}
+
+export async function getAgentFilesystemSettings(): Promise<AgentFilesystemSettings> {
+	try {
+		const raw = await readFile(getSettingsPath(), "utf8");
+		const parsed = JSON.parse(raw) as Partial<AgentFilesystemSettings>;
+		if (parsed.mode !== "cloud" && parsed.mode !== "desktop_local_folder") {
+			return getDefaultSettings();
+		}
+		return {
+			mode: parsed.mode,
+			localRootPath: parsed.localRootPath ?? null,
+			updatedAt: parsed.updatedAt ?? new Date().toISOString(),
+		};
+	} catch {
+		return getDefaultSettings();
+	}
+}
+
+export async function setAgentFilesystemSettings(
+	settings: Partial<Pick<AgentFilesystemSettings, "mode" | "localRootPath">>
+): Promise<AgentFilesystemSettings> {
+	const current = await getAgentFilesystemSettings();
+	const nextMode =
+		settings.mode === "cloud" || settings.mode === "desktop_local_folder"
+			? settings.mode
+			: current.mode;
+	const next: AgentFilesystemSettings = {
+		mode: nextMode,
+		localRootPath:
+			settings.localRootPath === undefined ? current.localRootPath : settings.localRootPath,
+		updatedAt: new Date().toISOString(),
+	};
+
+	const settingsPath = getSettingsPath();
+	await mkdir(dirname(settingsPath), { recursive: true });
+	await writeFile(settingsPath, JSON.stringify(next, null, 2), "utf8");
+	return next;
+}
+
+export async function pickAgentFilesystemRoot(): Promise<string | null> {
+	const result = await dialog.showOpenDialog({
+		title: "Select local folder for Agent Filesystem",
+		properties: ["openDirectory"],
+	});
+	if (result.canceled || result.filePaths.length === 0) {
+		return null;
+	}
+	return result.filePaths[0] ?? null;
+}
diff --git a/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx b/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx
index 6c94134b7..bdb77ade2 100644
--- a/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx
+++ b/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx
@@ -46,6 +46,7 @@ import {
 import { useChatSessionStateSync } from "@/hooks/use-chat-session-state";
 import { useMessagesSync } from "@/hooks/use-messages-sync";
 import { documentsApiService } from "@/lib/apis/documents-api.service";
+import { getAgentFilesystemSelection } from "@/lib/agent-filesystem";
 import { getBearerToken } from "@/lib/auth-utils";
 import { convertToThreadMessage } from "@/lib/chat/message-utils";
 import {
@@ -656,6 +657,14 @@ export default function NewChatPage() {
 
 			try {
 				const backendUrl = process.env.NEXT_PUBLIC_FASTAPI_BACKEND_URL || "http://localhost:8000";
+				const selection = await getAgentFilesystemSelection();
+				if (
+					selection.filesystem_mode === "desktop_local_folder" &&
+					!selection.local_filesystem_root
+				) {
+					toast.error("Select a local folder before using Local Folder mode.");
+					return;
+				}
 
 				// Build message history for context
 				const messageHistory = messages
@@ -691,6 +700,9 @@ export default function NewChatPage() {
 						chat_id: currentThreadId,
 						user_query: userQuery.trim(),
 						search_space_id: searchSpaceId,
+						filesystem_mode: selection.filesystem_mode,
+						client_platform: selection.client_platform,
+						local_filesystem_root: selection.local_filesystem_root,
 						messages: messageHistory,
 						mentioned_document_ids: hasDocumentIds ? mentionedDocumentIds.document_ids : undefined,
 						mentioned_surfsense_doc_ids: hasSurfsenseDocIds
@@ -1074,6 +1086,7 @@ export default function NewChatPage() {
 
 			try {
 				const backendUrl = process.env.NEXT_PUBLIC_FASTAPI_BACKEND_URL || "http://localhost:8000";
+				const selection = await getAgentFilesystemSelection();
 				const response = await fetch(`${backendUrl}/api/v1/threads/${resumeThreadId}/resume`, {
 					method: "POST",
 					headers: {
@@ -1083,6 +1096,9 @@ export default function NewChatPage() {
 					body: JSON.stringify({
 						search_space_id: searchSpaceId,
 						decisions,
+						filesystem_mode: selection.filesystem_mode,
+						client_platform: selection.client_platform,
+						local_filesystem_root: selection.local_filesystem_root,
 					}),
 					signal: controller.signal,
 				});
@@ -1406,6 +1422,7 @@ export default function NewChatPage() {
 			]);
 
 			try {
+				const selection = await getAgentFilesystemSelection();
 				const response = await fetch(getRegenerateUrl(threadId), {
 					method: "POST",
 					headers: {
@@ -1416,6 +1433,9 @@ export default function NewChatPage() {
 						search_space_id: searchSpaceId,
 						user_query: newUserQuery || null,
 						disabled_tools: disabledTools.length > 0 ? disabledTools : undefined,
+						filesystem_mode: selection.filesystem_mode,
+						client_platform: selection.client_platform,
+						local_filesystem_root: selection.local_filesystem_root,
 					}),
 					signal: controller.signal,
 				});
diff --git a/surfsense_web/components/assistant-ui/thread.tsx b/surfsense_web/components/assistant-ui/thread.tsx
index 8d60e2c5c..094d99a29 100644
--- a/surfsense_web/components/assistant-ui/thread.tsx
+++ b/surfsense_web/components/assistant-ui/thread.tsx
@@ -94,6 +94,12 @@ import { cn } from "@/lib/utils";
 
 const COMPOSER_PLACEHOLDER = "Ask anything, type / for prompts, type @ to mention docs";
 
+type ComposerFilesystemSettings = {
+	mode: "cloud" | "desktop_local_folder";
+	localRootPath: string | null;
+	updatedAt: string;
+};
+
 export const Thread: FC = () => {
 	return <ThreadContent />;
 };
@@ -362,6 +368,9 @@ const Composer: FC = () => {
 	}, []);
 
 	const electronAPI = useElectronAPI();
+	const [filesystemSettings, setFilesystemSettings] = useState<ComposerFilesystemSettings | null>(
+		null
+	);
 	const [clipboardInitialText, setClipboardInitialText] = useState<string | undefined>();
 	const clipboardLoadedRef = useRef(false);
 	useEffect(() => {
@@ -374,6 +383,48 @@ const Composer: FC = () => {
 		});
 	}, [electronAPI]);
 
+	useEffect(() => {
+		if (!electronAPI?.getAgentFilesystemSettings) return;
+		let mounted = true;
+		electronAPI
+			.getAgentFilesystemSettings()
+			.then((settings) => {
+				if (!mounted) return;
+				setFilesystemSettings(settings);
+			})
+			.catch(() => {
+				if (!mounted) return;
+				setFilesystemSettings({
+					mode: "cloud",
+					localRootPath: null,
+					updatedAt: new Date().toISOString(),
+				});
+			});
+		return () => {
+			mounted = false;
+		};
+	}, [electronAPI]);
+
+	const handleFilesystemModeChange = useCallback(
+		async (mode: "cloud" | "desktop_local_folder") => {
+			if (!electronAPI?.setAgentFilesystemSettings) return;
+			const updated = await electronAPI.setAgentFilesystemSettings({ mode });
+			setFilesystemSettings(updated);
+		},
+		[electronAPI]
+	);
+
+	const handlePickFilesystemRoot = useCallback(async () => {
+		if (!electronAPI?.pickAgentFilesystemRoot || !electronAPI?.setAgentFilesystemSettings) return;
+		const picked = await electronAPI.pickAgentFilesystemRoot();
+		if (!picked) return;
+		const updated = await electronAPI.setAgentFilesystemSettings({
+			mode: "desktop_local_folder",
+			localRootPath: picked,
+		});
+		setFilesystemSettings(updated);
+	}, [electronAPI]);
+
 	const isThreadEmpty = useAuiState(({ thread }) => thread.isEmpty);
 	const isThreadRunning = useAuiState(({ thread }) => thread.isRunning);
 
@@ -668,6 +719,45 @@ const Composer: FC = () => {
 				currentUserId={currentUser?.id ?? null}
 				members={members ?? []}
 			/>
+			{electronAPI && filesystemSettings ? (
+				<div className="mx-3 flex items-center gap-2 rounded-xl border border-border/60 bg-background/60 p-1.5">
+					<button
+						type="button"
+						onClick={() => handleFilesystemModeChange("cloud")}
+						className={cn(
+							"rounded-lg px-2.5 py-1 text-xs font-medium transition-colors",
+							filesystemSettings.mode === "cloud"
+								? "bg-accent text-foreground"
+								: "text-muted-foreground hover:bg-accent/60 hover:text-foreground"
+						)}
+					>
+						Cloud
+					</button>
+					<button
+						type="button"
+						onClick={() => handleFilesystemModeChange("desktop_local_folder")}
+						className={cn(
+							"rounded-lg px-2.5 py-1 text-xs font-medium transition-colors",
+							filesystemSettings.mode === "desktop_local_folder"
+								? "bg-accent text-foreground"
+								: "text-muted-foreground hover:bg-accent/60 hover:text-foreground"
+						)}
+					>
+						Local
+					</button>
+					<div className="h-4 w-px bg-border/70" />
+					<button
+						type="button"
+						onClick={handlePickFilesystemRoot}
+						className="min-w-0 flex-1 rounded-lg px-2.5 py-1 text-left text-xs text-muted-foreground hover:bg-accent/60 hover:text-foreground transition-colors"
+						title={filesystemSettings.localRootPath ?? "Select local folder"}
+					>
+						{filesystemSettings.localRootPath
+							? filesystemSettings.localRootPath.split("/").at(-1) || filesystemSettings.localRootPath
+							: "Select folder..."}
+					</button>
+				</div>
+			) : null}
 			{showDocumentPopover && (
 				<div className="absolute bottom-full left-0 z-[9999] mb-2">
 					<DocumentMentionPicker
@@ -1104,7 +1194,13 @@ const ComposerAction: FC<ComposerActionProps> = ({ isBlockedByOtherUser = false
 																group.tools.flatMap((t, i) =>
 																	i === 0
 																		? [t.description]
-																		: [<Dot key={i} className="inline h-4 w-4" />, t.description]
+																		: [
+																				<Dot
+																					key={`dot-${group.label}-${t.description}`}
+																					className="inline h-4 w-4"
+																				/>,
+																				t.description,
+																			]
 																)}
 														</TooltipContent>
 													</Tooltip>
diff --git a/surfsense_web/lib/apis/base-api.service.ts b/surfsense_web/lib/apis/base-api.service.ts
index 04e9fad54..269fd916c 100644
--- a/surfsense_web/lib/apis/base-api.service.ts
+++ b/surfsense_web/lib/apis/base-api.service.ts
@@ -1,4 +1,5 @@
 import type { ZodType } from "zod";
+import { getClientPlatform } from "../agent-filesystem";
 import { getBearerToken, handleUnauthorized, refreshAccessToken } from "../auth-utils";
 import {
 	AbortedError,
@@ -75,6 +76,8 @@ class BaseApiService {
 			const defaultOptions: RequestOptions = {
 				headers: {
 					Authorization: `Bearer ${this.bearerToken || ""}`,
+					"X-SurfSense-Client-Platform":
+						typeof window === "undefined" ? "web" : getClientPlatform(),
 				},
 				method: "GET",
 				responseType: ResponseType.JSON,
diff --git a/surfsense_web/types/window.d.ts b/surfsense_web/types/window.d.ts
index a80520684..661c0f7d6 100644
--- a/surfsense_web/types/window.d.ts
+++ b/surfsense_web/types/window.d.ts
@@ -41,6 +41,14 @@ interface FolderFileEntry {
 	mtimeMs: number;
 }
 
+type AgentFilesystemMode = "cloud" | "desktop_local_folder";
+
+interface AgentFilesystemSettings {
+	mode: AgentFilesystemMode;
+	localRootPath: string | null;
+	updatedAt: string;
+}
+
 interface ElectronAPI {
 	versions: {
 		electron: string;
@@ -125,6 +133,13 @@ interface ElectronAPI {
 		appVersion: string;
 		platform: string;
 	}>;
+	// Agent filesystem mode
+	getAgentFilesystemSettings: () => Promise<AgentFilesystemSettings>;
+	setAgentFilesystemSettings: (settings: {
+		mode?: AgentFilesystemMode;
+		localRootPath?: string | null;
+	}) => Promise<AgentFilesystemSettings>;
+	pickAgentFilesystemRoot: () => Promise<string | null>;
 }
 
 declare global {