diff --git a/docs/reference/extensions.md b/docs/reference/extensions.md
index 4c93f94dbe..24afd8c68f 100644
--- a/docs/reference/extensions.md
+++ b/docs/reference/extensions.md
@@ -276,7 +276,7 @@ Most extensions include configuration files in their install directory:
 ```text
 .specify/extensions/<ext>/
 ├── <ext>-config.yml           # Project config (version controlled)
-├── <ext>-config.local.yml     # Local overrides (gitignored)
+├── local-config.yml           # Local overrides (gitignored)
 └── <ext>-config.template.yml  # Template reference
 ```
 
@@ -284,7 +284,7 @@ Configuration is merged in this order (highest priority last):
 
 1. **Extension defaults** (from `extension.yml`)
 2. **Project config** (`<ext>-config.yml`)
-3. **Local overrides** (`<ext>-config.local.yml`)
+3. **Local overrides** (`local-config.yml`)
 4. **Environment variables** (`SPECKIT_<EXT>_*`)
 
 To set up configuration for a newly installed extension, copy the template:
diff --git a/extensions/EXTENSION-API-REFERENCE.md b/extensions/EXTENSION-API-REFERENCE.md
index 2be2f43123..4c2e032714 100644
--- a/extensions/EXTENSION-API-REFERENCE.md
+++ b/extensions/EXTENSION-API-REFERENCE.md
@@ -562,7 +562,7 @@ field_mappings:
 
 1. **Extension Defaults** (from `extension.yml` `defaults` section)
 2. **Project Config** (`{extension-id}-config.yml`)
-3. **Local Override** (`{extension-id}-config.local.yml`, gitignored)
+3. **Local Override** (`local-config.yml`, gitignored)
 4. **Environment Variables** (`SPECKIT_{EXTENSION}_*`)
 
 ### Environment Variable Pattern
@@ -884,7 +884,7 @@ satisfied = version_satisfies("1.2.3", ">=1.0.0,<2.0.0")  # bool
 │   ├── {extension-id}/         # Extension directory
 │   │   ├── extension.yml       # Manifest
 │   │   ├── {ext}-config.yml    # User config
-│   │   ├── {ext}-config.local.yml  # Local overrides (gitignored)
+│   │   ├── local-config.yml    # Local overrides (gitignored)
 │   │   ├── {ext}-config.template.yml  # Template
 │   │   ├── commands/           # Command files
 │   │   │   └── *.md
diff --git a/extensions/EXTENSION-DEVELOPMENT-GUIDE.md b/extensions/EXTENSION-DEVELOPMENT-GUIDE.md
index a263a7bbf1..5292a670dc 100644
--- a/extensions/EXTENSION-DEVELOPMENT-GUIDE.md
+++ b/extensions/EXTENSION-DEVELOPMENT-GUIDE.md
@@ -385,7 +385,7 @@ In your command, load config with layered precedence:
 
 1. Extension defaults (`extension.yml` → `defaults`)
 2. Project config (`.specify/extensions/my-ext/my-ext-config.yml`)
-3. Local overrides (`.specify/extensions/my-ext/my-ext-config.local.yml` - gitignored)
+3. Local overrides (`.specify/extensions/my-ext/local-config.yml` - gitignored)
 4. Environment variables (`SPECKIT_MY_EXT_*`)
 
 **Example loading script**:
diff --git a/extensions/EXTENSION-USER-GUIDE.md b/extensions/EXTENSION-USER-GUIDE.md
index 04b5e1edc0..b2459700d1 100644
--- a/extensions/EXTENSION-USER-GUIDE.md
+++ b/extensions/EXTENSION-USER-GUIDE.md
@@ -348,7 +348,7 @@ Extensions can have multiple configuration files:
 ```text
 .specify/extensions/jira/
 ├── jira-config.yml           # Main config (version controlled)
-├── jira-config.local.yml     # Local overrides (gitignored)
+├── local-config.yml          # Local overrides (gitignored)
 └── jira-config.template.yml  # Template (reference)
 ```
 
@@ -358,7 +358,7 @@ Configuration is merged in this order (highest priority last):
 
 1. **Extension defaults** (from `extension.yml`)
 2. **Project config** (`jira-config.yml`)
-3. **Local overrides** (`jira-config.local.yml`)
+3. **Local overrides** (`local-config.yml`)
 4. **Environment variables** (`SPECKIT_JIRA_*`)
 
 ### Example: Jira Configuration
@@ -374,7 +374,7 @@ defaults:
     labels: ["spec-driven"]
 ```
 
-**Local override** (`.specify/extensions/jira/jira-config.local.yml`):
+**Local override** (`.specify/extensions/jira/local-config.yml`):
 
 ```yaml
 project:
@@ -868,7 +868,7 @@ specify extension add --dev /path/to/extension
 
 - `.specify/extensions/.cache/` (catalog cache)
 - `.specify/extensions/.backup/` (config backups)
-- `.specify/extensions/*/*.local.yml` (local overrides)
+- `.specify/extensions/*/local-config.yml` (local overrides)
 - `.specify/extensions/.registry` (installation state)
 
 Add to `.gitignore`:
@@ -876,7 +876,7 @@ Add to `.gitignore`:
 ```gitignore
 .specify/extensions/.cache/
 .specify/extensions/.backup/
-.specify/extensions/*/*.local.yml
+.specify/extensions/*/local-config.yml
 .specify/extensions/.registry
 ```
 
@@ -907,7 +907,7 @@ To install: `specify extension add jira`
 Use local config for development:
 
 ```yaml
-# .specify/extensions/jira/jira-config.local.yml
+# .specify/extensions/jira/local-config.yml
 project:
   key: "DEVTEST"  # Your test project
 
diff --git a/extensions/template/.gitignore b/extensions/template/.gitignore
index 1f7b132a76..9ca5bcb500 100644
--- a/extensions/template/.gitignore
+++ b/extensions/template/.gitignore
@@ -1,4 +1,5 @@
 # Local configuration overrides
+local-config.yml
 *-config.local.yml
 
 # Python
diff --git a/extensions/template/config-template.yml b/extensions/template/config-template.yml
index 74725373d7..d6e4abe7e6 100644
--- a/extensions/template/config-template.yml
+++ b/extensions/template/config-template.yml
@@ -71,5 +71,5 @@ advanced:
 # Note: Use uppercase and replace dots with underscores
 
 # Local Overrides:
-# For local development, create my-extension-config.local.yml (gitignored)
+# For local development, create local-config.yml (gitignored)
 # to override settings without affecting the team configuration