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Prerequisites

Before getting started, ensure your system meets these requirements:
  • Operating System: macOS, Linux, or Windows
  • RAM: Minimum 8GB (16GB+ recommended)
  • Storage: At least 10GB free space
  • Continue extension installed

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Installation Steps

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Step 1: Install Ollama

Choose the installation method for your operating system: 
# macOS
brew install ollama

# Linux
curl -fsSL https://ollama.ai/install.sh | sh

# Windows
# Download from ollama.ai

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Step 2: Download Models

After installing Ollama, download the models you want to use. Here are some popular options: 
# Popular models for development
ollama pull mistral
ollama pull qwen2.5-coder:1.5b-base
ollama pull nomic-embed-text:latest

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Configuration

Configure Continue to work with your local Ollama instance:

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Continue Configuration

models:
  - name: mistral
    provider: ollama
    apiBase: http://localhost:11434
    model: mistral
    roles:
      - chat
      - edit
      - apply
  - name: Qwen2.5-Coder 1.5B
    provider: ollama
    apiBase: http://localhost:11434
    model: qwen2.5-coder:1.5b-base
    roles:
      - autocomplete
  - name: Nomic Embed
    provider: ollama
    apiBase: http://localhost:11434
    model: nomic-embed-text:latest
    roles:
      - embed
You can update apiBase with the IP address of a remote machine serving Ollama.

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Advanced Settings

For optimal performance, consider these advanced configuration options:
  • Memory optimization
  • GPU acceleration
  • Custom model parameters
  • Performance tuning

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Best Practices

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Model Selection

Choose models based on your specific needs:
  1. Code Generation: Use CodeLlama or Mistral
  2. Chat: Llama2 or Mistral
  3. Specialized Tasks: Domain-specific models

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Performance Optimization

To get the best performance from Ollama:
  • Monitor system resources
  • Adjust context window size
  • Use appropriate model sizes
  • Enable GPU acceleration when available

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Troubleshooting

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Common Issues

Here are solutions to common problems you might encounter:

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Connection Problems

  • Check Ollama service status
  • Verify port availability
  • Review firewall settings

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Performance Issues

  • Insufficient RAM
  • Model too large for system
  • GPU compatibility

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Solutions

Try these solutions in order:
  1. Restart Ollama service
  2. Clear model cache
  3. Update to latest version
  4. Check system requirements

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Example Workflows

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Code Generation

# Example: Generate a FastAPI endpointdef create_user_endpoint():    # Continue will help generate the implementation    pass

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Code Review

Use Continue with Ollama to:
  • Analyze code quality
  • Suggest improvements
  • Identify potential bugs
  • Generate documentation

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Conclusion

Ollama with Continue provides a powerful local development environment for AI-assisted coding. You now have complete control over your AI models, ensuring privacy and enabling offline development workflows.
This guide is based on Ollama v0.1.x and Continue v0.8.x. Please check for updates regularly.