diff --git a/core/config/profile/LocalProfileLoader.ts b/core/config/profile/LocalProfileLoader.ts
index 9c57ae94c9c..bfd4473dc0d 100644
--- a/core/config/profile/LocalProfileLoader.ts
+++ b/core/config/profile/LocalProfileLoader.ts
@@ -1,4 +1,5 @@
 import { ConfigResult, parseConfigYaml } from "@continuedev/config-yaml";
+import fs from "node:fs";
 
 import { ControlPlaneClient } from "../../control-plane/client.js";
 import { ContinueConfig, IDE, ILLMLogger } from "../../index.js";
@@ -21,6 +22,7 @@ export default class LocalProfileLoader implements IProfileLoader {
       | { path: string; content: string }
       | undefined,
   ) {
+    const defaultTitle = "Local Config";
     const description: ProfileDescription = {
       id: overrideAssistantFile?.path ?? LocalProfileLoader.ID,
       profileType: "local",
@@ -32,7 +34,7 @@ export default class LocalProfileLoader implements IProfileLoader {
       iconUrl: "",
       title: overrideAssistantFile?.path
         ? getUriPathBasename(overrideAssistantFile.path)
-        : "Local Config",
+        : defaultTitle,
       errors: undefined,
       uri:
         overrideAssistantFile?.path ??
@@ -40,12 +42,21 @@ export default class LocalProfileLoader implements IProfileLoader {
       rawYaml: undefined,
     };
     this.description = description;
-    if (overrideAssistantFile?.content) {
+    let configContent = overrideAssistantFile?.content;
+    if (configContent === undefined) {
       try {
-        const parsedAssistant = parseConfigYaml(
-          overrideAssistantFile?.content ?? "",
-        );
-        this.description.title = parsedAssistant.name;
+        configContent = fs.readFileSync(getPrimaryConfigFilePath(), "utf8");
+      } catch (e) {
+        console.error("Failed to read config file: ", e);
+      }
+    }
+    if (configContent) {
+      try {
+        const parsedAssistant = parseConfigYaml(configContent);
+        this.description.title =
+          parsedAssistant.name?.trim() ||
+          this.description.title ||
+          defaultTitle;
       } catch (e) {
         console.error("Failed to parse config file: ", e);
       }
diff --git a/core/config/profile/LocalProfileLoader.vitest.ts b/core/config/profile/LocalProfileLoader.vitest.ts
new file mode 100644
index 00000000000..924e8254c45
--- /dev/null
+++ b/core/config/profile/LocalProfileLoader.vitest.ts
@@ -0,0 +1,53 @@
+import fs from "node:fs";
+import os from "node:os";
+import path from "node:path";
+
+import { afterEach, describe, expect, it, vi } from "vitest";
+
+async function createLoader(configYaml?: string) {
+  const tempDir = fs.mkdtempSync(
+    path.join(os.tmpdir(), "continue-local-profile-loader-"),
+  );
+  process.env.CONTINUE_GLOBAL_DIR = tempDir;
+
+  if (configYaml !== undefined) {
+    fs.writeFileSync(path.join(tempDir, "config.yaml"), configYaml);
+  }
+
+  vi.resetModules();
+  const { default: LocalProfileLoader } = await import("./LocalProfileLoader");
+
+  return {
+    tempDir,
+    loader: new LocalProfileLoader({} as any, {} as any, {} as any),
+  };
+}
+
+afterEach(() => {
+  delete process.env.CONTINUE_GLOBAL_DIR;
+  vi.restoreAllMocks();
+});
+
+describe("LocalProfileLoader", () => {
+  it("uses name from default local config.yaml for the profile title", async () => {
+    const { loader, tempDir } = await createLoader(
+      "name: Custom Local Profile\nversion: '1.0'",
+    );
+    expect(loader.description.title).toBe("Custom Local Profile");
+    fs.rmSync(tempDir, { recursive: true, force: true });
+  });
+
+  it("falls back to Local Config when default config.yaml is malformed", async () => {
+    const errorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
+    const { loader, tempDir } = await createLoader("name: [");
+    expect(loader.description.title).toBe("Local Config");
+    expect(errorSpy).toHaveBeenCalled();
+    fs.rmSync(tempDir, { recursive: true, force: true });
+  });
+
+  it("falls back to Local Config when name is missing", async () => {
+    const { loader, tempDir } = await createLoader("models: []");
+    expect(loader.description.title).toBe("Local Config");
+    fs.rmSync(tempDir, { recursive: true, force: true });
+  });
+});