Tech With Tim

The Best LOCAL Agentic Coding Workflow (Complete Guide)

Jun 10, 2026 34 min
agentic codingllm local deploymentlm studiovs codeai programming
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Summary

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This guide demonstrates how to set up a fully local agentic coding environment using LM Studio, VS Code, and the Continue extension, enabling private and cost-free AI-assisted programming.

The video provides a comprehensive tutorial for developers who want to perform 'agentic coding'—where an AI model autonomously executes tasks, writes files, and runs bash commands—entirely on their own machine. By avoiding external API providers, users can eliminate costs and maintain privacy while developing code.

The setup process centers on two key pieces of software: LM Studio, which is used to download and run local LLMs (Large Language Models), and Visual Studio Code, which hosts the 'Continue' extension. The tutorial explains how to select the right model based on the user's hardware—specifically, focusing on VRAM and Unified Memory for macOS—and demonstrates how to configure the Continue extension's YAML config file to connect to the local server hosted by LM Studio.

Throughout the video, Tim provides a clear 'Hardware to Model' tier table, offering concrete recommendations on which models (specifically the Qwen family) are best suited for different levels of machine performance. He also walks through common pitfalls like memory management, and how to verify that the local models are successfully communicating with the coding environment.

Steps to follow

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Worth watching if: You are a software developer with decent hardware (modern GPU or M-series Mac) who wants to run AI agents locally for private, cost-free coding tasks. This is ideal if you are concerned about data privacy or want to avoid monthly subscription fees for high-end AI coding assistants.

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