Setup Continue Extension in VS Code with a Local LLM model

Claude Opus 4.6, verified by Yanfei Tang 2026-03-26

This guide documents how to set up the Continue extension in VS Code to use a self-hosted LLM served via an OpenAI-compatible API (e.g., vLLM, SGLang).

Prerequisites

  • VS Code with the Continue extension installed (tested with v1.2.18)
  • A self-hosted LLM serving an OpenAI-compatible API (e.g., vLLM or SGLang)
  • The API endpoint URL and API key

Step 1: Verify the API Endpoint

Before configuring Continue, confirm that your API server is reachable and check the exact model name it reports:

curl -s http://<your-server>:30000/v1/models \
  -H "Authorization: Bearer <your-api-key>"

Look at the id field in the response. The model name may include a full path, for example:

{
  "data": [
    {
      "id": "/workplace/Qwen3.5-397B-A17B-FP8",
      ...
    }
  ]
}

Important: The model field in your config must match this id exactly — including any leading path like /workplace/.

You can also test a quick chat completion:

curl -s http://<your-server>:30000/v1/chat/completions \
  -H "Authorization: Bearer <your-api-key>" \
  -H "Content-Type: application/json" \
  -d '{
    "model": "/workplace/Qwen3.5-397B-A17B-FP8",
    "messages": [{"role": "user", "content": "Say hello"}],
    "max_tokens": 20
  }'

Step 2: Create the Continue Config

Edit ~/.continue/config.yaml. A working minimal config requires three top-level fields (name, version, schema) plus a models list:

name: Local Config
version: "1.0.0"
schema: v1
models:
  - name: "Qwen3.5"
    provider: openai
    model: "/workplace/Qwen3.5-397B-A17B-FP8"
    apiBase: "http://<your-server>:30000/v1"
    apiKey: "<your-api-key>"
Field Description
name A label for this config profile
version Config version string
schema Must be v1 for Continue v1.2.x
provider Use openai for any OpenAI-compatible API
model Exact model ID from the /v1/models endpoint
apiBase Your server’s base URL (include /v1)
apiKey API key for authentication

Step 3: Reload VS Code

After saving config.yaml, reload VS Code for the changes to take effect:

Ctrl+Shift+PDeveloper: Reload Window

The model should now appear in the Continue sidebar.

Troubleshooting

“No models configured”

This is the most common issue. Check the following:

  1. Missing top-level fields. Continue v1.2.x validates config.yaml with a strict schema (Zod). If name, version, or schema is missing, the entire config fails to parse silently — resulting in “No models configured.”

  2. Wrong model name. The model field must match the exact id returned by /v1/models. A common mistake is using Qwen3.5-397B-A17B-FP8 when the server reports /workplace/Qwen3.5-397B-A17B-FP8.

  3. YAML syntax errors. Run a quick validation:
    python3 -c "import yaml; yaml.safe_load(open('$HOME/.continue/config.yaml'))"
    

    No output means the YAML is valid.

  4. Conflicting config files. Make sure there is no stale config.json in ~/.continue/ that might override config.yaml.

Slow or blank responses

Some models (e.g., Qwen3.5) use a reasoning/thinking step before generating the final answer, which can cause longer response times. If this is an issue, try increasing the timeout or max_tokens in your config.