diff --git a/src/local-proxy/src/index.ts b/src/local-proxy/src/index.ts
index 800ef88..ae3d83f 100644
--- a/src/local-proxy/src/index.ts
+++ b/src/local-proxy/src/index.ts
@@ -5,6 +5,9 @@ export { StdioUpstream, HttpUpstream } from './upstream/index.js';
 export { HealthMonitor } from './health.js';
 export type { HealthState, HealthStatus, HealthMonitorOptions } from './health.js';
 export { main } from './main.js';
+export { ProviderRegistry } from './providers/index.js';
+export type { LlmProvider, CompletionOptions, CompletionResult, ChatMessage } from './providers/index.js';
+export { OpenAiProvider, AnthropicProvider, OllamaProvider } from './providers/index.js';
 export type {
   JsonRpcRequest,
   JsonRpcResponse,
diff --git a/src/local-proxy/src/providers/anthropic.ts b/src/local-proxy/src/providers/anthropic.ts
new file mode 100644
index 0000000..ba4d7e2
--- /dev/null
+++ b/src/local-proxy/src/providers/anthropic.ts
@@ -0,0 +1,179 @@
+import https from 'node:https';
+import type { LlmProvider, CompletionOptions, CompletionResult, ChatMessage, ToolCall } from './types.js';
+
+export interface AnthropicConfig {
+  apiKey: string;
+  defaultModel?: string;
+}
+
+/**
+ * Anthropic Claude provider using the Messages API.
+ */
+export class AnthropicProvider implements LlmProvider {
+  readonly name = 'anthropic';
+  private apiKey: string;
+  private defaultModel: string;
+
+  constructor(config: AnthropicConfig) {
+    this.apiKey = config.apiKey;
+    this.defaultModel = config.defaultModel ?? 'claude-sonnet-4-20250514';
+  }
+
+  async complete(options: CompletionOptions): Promise<CompletionResult> {
+    const model = options.model ?? this.defaultModel;
+
+    // Separate system message from conversation
+    const systemMessages = options.messages.filter((m) => m.role === 'system');
+    const conversationMessages = options.messages.filter((m) => m.role !== 'system');
+
+    const body: Record<string, unknown> = {
+      model,
+      max_tokens: options.maxTokens ?? 4096,
+      messages: conversationMessages.map(toAnthropicMessage),
+    };
+
+    if (systemMessages.length > 0) {
+      body.system = systemMessages.map((m) => m.content).join('\n');
+    }
+    if (options.temperature !== undefined) body.temperature = options.temperature;
+
+    if (options.tools && options.tools.length > 0) {
+      body.tools = options.tools.map((t) => ({
+        name: t.name,
+        description: t.description,
+        input_schema: t.inputSchema,
+      }));
+    }
+
+    const response = await this.request(body);
+    return parseAnthropicResponse(response);
+  }
+
+  async listModels(): Promise<string[]> {
+    // Anthropic doesn't have a models listing endpoint; return known models
+    return [
+      'claude-opus-4-20250514',
+      'claude-sonnet-4-20250514',
+      'claude-haiku-3-5-20241022',
+    ];
+  }
+
+  async isAvailable(): Promise<boolean> {
+    try {
+      // Send a minimal request to check API key
+      await this.complete({
+        messages: [{ role: 'user', content: 'hi' }],
+        maxTokens: 1,
+      });
+      return true;
+    } catch {
+      return false;
+    }
+  }
+
+  private request(body: unknown): Promise<unknown> {
+    return new Promise((resolve, reject) => {
+      const payload = JSON.stringify(body);
+      const opts = {
+        hostname: 'api.anthropic.com',
+        port: 443,
+        path: '/v1/messages',
+        method: 'POST',
+        timeout: 120000,
+        headers: {
+          'x-api-key': this.apiKey,
+          'anthropic-version': '2023-06-01',
+          'Content-Type': 'application/json',
+          'Content-Length': Buffer.byteLength(payload),
+        },
+      };
+
+      const req = https.request(opts, (res) => {
+        const chunks: Buffer[] = [];
+        res.on('data', (chunk: Buffer) => chunks.push(chunk));
+        res.on('end', () => {
+          const raw = Buffer.concat(chunks).toString('utf-8');
+          try {
+            resolve(JSON.parse(raw));
+          } catch {
+            reject(new Error(`Invalid JSON response: ${raw.slice(0, 200)}`));
+          }
+        });
+      });
+      req.on('error', reject);
+      req.on('timeout', () => {
+        req.destroy();
+        reject(new Error('Request timed out'));
+      });
+      req.write(payload);
+      req.end();
+    });
+  }
+}
+
+function toAnthropicMessage(msg: ChatMessage): Record<string, unknown> {
+  if (msg.role === 'tool') {
+    return {
+      role: 'user',
+      content: [{
+        type: 'tool_result',
+        tool_use_id: msg.toolCallId,
+        content: msg.content,
+      }],
+    };
+  }
+  return {
+    role: msg.role === 'user' ? 'user' : 'assistant',
+    content: msg.content,
+  };
+}
+
+function parseAnthropicResponse(raw: unknown): CompletionResult {
+  const data = raw as {
+    content?: Array<{
+      type: string;
+      text?: string;
+      id?: string;
+      name?: string;
+      input?: Record<string, unknown>;
+    }>;
+    stop_reason?: string;
+    usage?: {
+      input_tokens?: number;
+      output_tokens?: number;
+    };
+  };
+
+  let content = '';
+  const toolCalls: ToolCall[] = [];
+
+  for (const block of data.content ?? []) {
+    if (block.type === 'text' && block.text) {
+      content += block.text;
+    } else if (block.type === 'tool_use' && block.id && block.name) {
+      toolCalls.push({
+        id: block.id,
+        name: block.name,
+        arguments: block.input ?? {},
+      });
+    }
+  }
+
+  const inputTokens = data.usage?.input_tokens ?? 0;
+  const outputTokens = data.usage?.output_tokens ?? 0;
+
+  const finishReason = data.stop_reason === 'tool_use' ? 'tool_calls' as const
+    : data.stop_reason === 'max_tokens' ? 'length' as const
+    : 'stop' as const;
+
+  return {
+    content,
+    toolCalls,
+    usage: {
+      promptTokens: inputTokens,
+      completionTokens: outputTokens,
+      totalTokens: inputTokens + outputTokens,
+    },
+    finishReason,
+  };
+}
diff --git a/src/local-proxy/src/providers/index.ts b/src/local-proxy/src/providers/index.ts
new file mode 100644
index 0000000..0963ef8
--- /dev/null
+++ b/src/local-proxy/src/providers/index.ts
@@ -0,0 +1,8 @@
+export type { LlmProvider, CompletionOptions, CompletionResult, ChatMessage, ToolDefinition, ToolCall } from './types.js';
+export { OpenAiProvider } from './openai.js';
+export type { OpenAiConfig } from './openai.js';
+export { AnthropicProvider } from './anthropic.js';
+export type { AnthropicConfig } from './anthropic.js';
+export { OllamaProvider } from './ollama.js';
+export type { OllamaConfig } from './ollama.js';
+export { ProviderRegistry } from './registry.js';
diff --git a/src/local-proxy/src/providers/ollama.ts b/src/local-proxy/src/providers/ollama.ts
new file mode 100644
index 0000000..9a059f1
--- /dev/null
+++ b/src/local-proxy/src/providers/ollama.ts
@@ -0,0 +1,138 @@
+import http from 'node:http';
+import type { LlmProvider, CompletionOptions, CompletionResult, ToolCall } from './types.js';
+
+export interface OllamaConfig {
+  baseUrl?: string;
+  defaultModel?: string;
+}
+
+/**
+ * Ollama provider for local model inference.
+ * Uses the Ollama HTTP API at /api/chat.
+ */
+export class OllamaProvider implements LlmProvider {
+  readonly name = 'ollama';
+  private baseUrl: string;
+  private defaultModel: string;
+
+  constructor(config?: OllamaConfig) {
+    this.baseUrl = (config?.baseUrl ?? 'http://localhost:11434').replace(/\/$/, '');
+    this.defaultModel = config?.defaultModel ?? 'llama3.2';
+  }
+
+  async complete(options: CompletionOptions): Promise<CompletionResult> {
+    const model = options.model ?? this.defaultModel;
+    const body: Record<string, unknown> = {
+      model,
+      messages: options.messages.map((m) => ({
+        role: m.role === 'tool' ? 'assistant' : m.role,
+        content: m.content,
+      })),
+      stream: false,
+    };
+    if (options.temperature !== undefined) {
+      body.options = { temperature: options.temperature };
+    }
+
+    if (options.tools && options.tools.length > 0) {
+      body.tools = options.tools.map((t) => ({
+        type: 'function',
+        function: {
+          name: t.name,
+          description: t.description,
+          parameters: t.inputSchema,
+        },
+      }));
+    }
+
+    const response = await this.request('/api/chat', body);
+    return parseOllamaResponse(response);
+  }
+
+  async listModels(): Promise<string[]> {
+    const response = await this.request('/api/tags', undefined, 'GET') as {
+      models?: Array<{ name: string }>;
+    };
+    return (response.models ?? []).map((m) => m.name);
+  }
+
+  async isAvailable(): Promise<boolean> {
+    try {
+      await this.listModels();
+      return true;
+    } catch {
+      return false;
+    }
+  }
+
+  private request(path: string, body?: unknown, method = 'POST'): Promise<unknown> {
+    return new Promise((resolve, reject) => {
+      const url = new URL(path, this.baseUrl);
+      const payload = body !== undefined ? JSON.stringify(body) : undefined;
+      const opts: http.RequestOptions = {
+        hostname: url.hostname,
+        port: url.port || 11434,
+        path: url.pathname,
+        method,
+        timeout: 300000, // Ollama can be slow on first inference
+        headers: {
+          'Content-Type': 'application/json',
+          ...(payload ? { 'Content-Length': Buffer.byteLength(payload) } : {}),
+        },
+      };
+
+      const req = http.request(opts, (res) => {
+        const chunks: Buffer[] = [];
+        res.on('data', (chunk: Buffer) => chunks.push(chunk));
+        res.on('end', () => {
+          const raw = Buffer.concat(chunks).toString('utf-8');
+          try {
+            resolve(JSON.parse(raw));
+          } catch {
+            reject(new Error(`Invalid JSON from Ollama: ${raw.slice(0, 200)}`));
+          }
+        });
+      });
+      req.on('error', reject);
+      req.on('timeout', () => {
+        req.destroy();
+        reject(new Error('Ollama request timed out'));
+      });
+      if (payload) req.write(payload);
+      req.end();
+    });
+  }
+}
+
+function parseOllamaResponse(raw: unknown): CompletionResult {
+  const data = raw as {
+    message?: {
+      content?: string;
+      tool_calls?: Array<{
+        function: { name: string; arguments: Record<string, unknown> };
+      }>;
+    };
+    prompt_eval_count?: number;
+    eval_count?: number;
+  };
+
+  const toolCalls: ToolCall[] = (data.message?.tool_calls ?? []).map((tc, i) => ({
+    id: `ollama-${i}`,
+    name: tc.function.name,
+    arguments: tc.function.arguments,
+  }));
+
+  const promptTokens = data.prompt_eval_count ?? 0;
+  const completionTokens = data.eval_count ?? 0;
+
+  return {
+    content: data.message?.content ?? '',
+    toolCalls,
+    usage: {
+      promptTokens,
+      completionTokens,
+      totalTokens: promptTokens + completionTokens,
+    },
+    finishReason: toolCalls.length > 0 ? 'tool_calls' : 'stop',
+  };
+}
diff --git a/src/local-proxy/src/providers/openai.ts b/src/local-proxy/src/providers/openai.ts
new file mode 100644
index 0000000..1adf0b6
--- /dev/null
+++ b/src/local-proxy/src/providers/openai.ts
@@ -0,0 +1,179 @@
+import https from 'node:https';
+import http from 'node:http';
+import type { LlmProvider, CompletionOptions, CompletionResult, ChatMessage, ToolCall } from './types.js';
+
+export interface OpenAiConfig {
+  apiKey: string;
+  baseUrl?: string;
+  defaultModel?: string;
+}
+
+interface OpenAiMessage {
+  role: string;
+  content: string | null;
+  tool_calls?: Array<{
+    id: string;
+    type: 'function';
+    function: { name: string; arguments: string };
+  }>;
+  tool_call_id?: string;
+  name?: string;
+}
+
+/**
+ * OpenAI-compatible provider. Works with OpenAI API, Azure OpenAI,
+ * and any service with an OpenAI-compatible chat completions endpoint.
+ */
+export class OpenAiProvider implements LlmProvider {
+  readonly name = 'openai';
+  private apiKey: string;
+  private baseUrl: string;
+  private defaultModel: string;
+
+  constructor(config: OpenAiConfig) {
+    this.apiKey = config.apiKey;
+    this.baseUrl = (config.baseUrl ?? 'https://api.openai.com').replace(/\/$/, '');
+    this.defaultModel = config.defaultModel ?? 'gpt-4o';
+  }
+
+  async complete(options: CompletionOptions): Promise<CompletionResult> {
+    const model = options.model ?? this.defaultModel;
+    const body: Record<string, unknown> = {
+      model,
+      messages: options.messages.map(toOpenAiMessage),
+    };
+    if (options.temperature !== undefined) body.temperature = options.temperature;
+    if (options.maxTokens !== undefined) body.max_tokens = options.maxTokens;
+
+    if (options.tools && options.tools.length > 0) {
+      body.tools = options.tools.map((t) => ({
+        type: 'function',
+        function: {
+          name: t.name,
+          description: t.description,
+          parameters: t.inputSchema,
+        },
+      }));
+    }
+
+    const response = await this.request('/v1/chat/completions', body);
+    return parseResponse(response);
+  }
+
+  async listModels(): Promise<string[]> {
+    const response = await this.request('/v1/models', undefined, 'GET');
+    const data = response as { data?: Array<{ id: string }> };
+    return (data.data ?? []).map((m) => m.id);
+  }
+
+  async isAvailable(): Promise<boolean> {
+    try {
+      await this.listModels();
+      return true;
+    } catch {
+      return false;
+    }
+  }
+
+  private request(path: string, body: unknown, method = 'POST'): Promise<unknown> {
+    return new Promise((resolve, reject) => {
+      const url = new URL(path, this.baseUrl);
+      const isHttps = url.protocol === 'https:';
+      const transport = isHttps ? https : http;
+
+      const payload = body !== undefined ? JSON.stringify(body) : undefined;
+      const opts = {
+        hostname: url.hostname,
+        port: url.port || (isHttps ? 443 : 80),
+        path: url.pathname,
+        method,
+        timeout: 120000,
+        headers: {
+          'Authorization': `Bearer ${this.apiKey}`,
+          'Content-Type': 'application/json',
+          ...(payload ? { 'Content-Length': Buffer.byteLength(payload) } : {}),
+        },
+      };
+
+      const req = transport.request(opts, (res) => {
+        const chunks: Buffer[] = [];
+        res.on('data', (chunk: Buffer) => chunks.push(chunk));
+        res.on('end', () => {
+          const raw = Buffer.concat(chunks).toString('utf-8');
+          try {
+            resolve(JSON.parse(raw));
+          } catch {
+            reject(new Error(`Invalid JSON response from ${path}: ${raw.slice(0, 200)}`));
+          }
+        });
+      });
+      req.on('error', reject);
+      req.on('timeout', () => {
+        req.destroy();
+        reject(new Error('Request timed out'));
+      });
+      if (payload) req.write(payload);
+      req.end();
+    });
+  }
+}
+
+function toOpenAiMessage(msg: ChatMessage): OpenAiMessage {
+  const result: OpenAiMessage = {
+    role: msg.role,
+    content: msg.content,
+  };
+  if (msg.toolCallId !== undefined) result.tool_call_id = msg.toolCallId;
+  if (msg.name !== undefined) result.name = msg.name;
+  return result;
+}
+
+function parseResponse(raw: unknown): CompletionResult {
+  const data = raw as {
+    choices?: Array<{
+      message?: {
+        content?: string | null;
+        tool_calls?: Array<{
+          id: string;
+          function: { name: string; arguments: string };
+        }>;
+      };
+      finish_reason?: string;
+    }>;
+    usage?: {
+      prompt_tokens?: number;
+      completion_tokens?: number;
+      total_tokens?: number;
+    };
+  };
+
+  const choice = data.choices?.[0];
+  const toolCalls: ToolCall[] = (choice?.message?.tool_calls ?? []).map((tc) => ({
+    id: tc.id,
+    name: tc.function.name,
+    arguments: safeParse(tc.function.arguments),
+  }));
+
+  const finishReason = choice?.finish_reason === 'tool_calls' ? 'tool_calls' as const
+    : choice?.finish_reason === 'length' ? 'length' as const
+    : 'stop' as const;
+
+  return {
+    content: choice?.message?.content ?? '',
+    toolCalls,
+    usage: {
+      promptTokens: data.usage?.prompt_tokens ?? 0,
+      completionTokens: data.usage?.completion_tokens ?? 0,
+      totalTokens: data.usage?.total_tokens ?? 0,
+    },
+    finishReason,
+  };
+}
+
+function safeParse(json: string): Record<string, unknown> {
+  try {
+    return JSON.parse(json) as Record<string, unknown>;
+  } catch {
+    return {};
+  }
+}
diff --git a/src/local-proxy/src/providers/registry.ts b/src/local-proxy/src/providers/registry.ts
new file mode 100644
index 0000000..f164307
--- /dev/null
+++ b/src/local-proxy/src/providers/registry.ts
@@ -0,0 +1,48 @@
+import type { LlmProvider } from './types.js';
+
+/**
+ * Registry for LLM providers. Supports switching the active provider at runtime.
+ */
+export class ProviderRegistry {
+  private providers = new Map<string, LlmProvider>();
+  private activeProvider: string | null = null;
+
+  register(provider: LlmProvider): void {
+    this.providers.set(provider.name, provider);
+    if (this.activeProvider === null) {
+      this.activeProvider = provider.name;
+    }
+  }
+
+  unregister(name: string): void {
+    this.providers.delete(name);
+    if (this.activeProvider === name) {
+      const first = this.providers.keys().next();
+      this.activeProvider = first.done ? null : first.value;
+    }
+  }
+
+  setActive(name: string): void {
+    if (!this.providers.has(name)) {
+      throw new Error(`Provider '${name}' is not registered`);
+    }
+    this.activeProvider = name;
+  }
+
+  getActive(): LlmProvider | null {
+    if (this.activeProvider === null) return null;
+    return this.providers.get(this.activeProvider) ?? null;
+  }
+
+  get(name: string): LlmProvider | undefined {
+    return this.providers.get(name);
+  }
+
+  list(): string[] {
+    return [...this.providers.keys()];
+  }
+
+  getActiveName(): string | null {
+    return this.activeProvider;
+  }
+}
diff --git a/src/local-proxy/src/providers/types.ts b/src/local-proxy/src/providers/types.ts
new file mode 100644
index 0000000..8aab79a
--- /dev/null
+++ b/src/local-proxy/src/providers/types.ts
@@ -0,0 +1,56 @@
+/**
+ * LLM Provider abstraction for the local proxy.
+ *
+ * When the proxy intercepts tool calls, it can optionally route them
+ * through an LLM provider for autonomous tool use, summarization,
+ * or other processing before forwarding to the upstream MCP server.
+ */
+
+export interface ChatMessage {
+  role: 'system' | 'user' | 'assistant' | 'tool';
+  content: string;
+  toolCallId?: string;
+  name?: string;
+}
+
+export interface ToolDefinition {
+  name: string;
+  description: string;
+  inputSchema: Record<string, unknown>;
+}
+
+export interface ToolCall {
+  id: string;
+  name: string;
+  arguments: Record<string, unknown>;
+}
+
+export interface CompletionResult {
+  content: string;
+  toolCalls: ToolCall[];
+  usage: {
+    promptTokens: number;
+    completionTokens: number;
+    totalTokens: number;
+  };
+  finishReason: 'stop' | 'tool_calls' | 'length' | 'error';
+}
+
+export interface CompletionOptions {
+  messages: ChatMessage[];
+  tools?: ToolDefinition[];
+  temperature?: number;
+  maxTokens?: number;
+  model?: string;
+}
+
+export interface LlmProvider {
+  /** Provider identifier (e.g., 'openai', 'anthropic', 'ollama') */
+  readonly name: string;
+  /** Create a chat completion */
+  complete(options: CompletionOptions): Promise<CompletionResult>;
+  /** List available models */
+  listModels(): Promise<string[]>;
+  /** Check if the provider is configured and reachable */
+  isAvailable(): Promise<boolean>;
+}
diff --git a/src/local-proxy/tests/providers.test.ts b/src/local-proxy/tests/providers.test.ts
new file mode 100644
index 0000000..66bf520
--- /dev/null
+++ b/src/local-proxy/tests/providers.test.ts
@@ -0,0 +1,118 @@
+import { describe, it, expect, vi, beforeEach } from 'vitest';
+import { ProviderRegistry } from '../src/providers/registry.js';
+import type { LlmProvider, CompletionOptions, CompletionResult } from '../src/providers/types.js';
+
+function mockProvider(name: string): LlmProvider {
+  return {
+    name,
+    complete: vi.fn(async (): Promise<CompletionResult> => ({
+      content: `Response from ${name}`,
+      toolCalls: [],
+      usage: { promptTokens: 10, completionTokens: 20, totalTokens: 30 },
+      finishReason: 'stop',
+    })),
+    listModels: vi.fn(async () => [`${name}-model-1`, `${name}-model-2`]),
+    isAvailable: vi.fn(async () => true),
+  };
+}
+
+describe('ProviderRegistry', () => {
+  let registry: ProviderRegistry;
+
+  beforeEach(() => {
+    registry = new ProviderRegistry();
+  });
+
+  it('starts with no providers', () => {
+    expect(registry.list()).toEqual([]);
+    expect(registry.getActive()).toBeNull();
+    expect(registry.getActiveName()).toBeNull();
+  });
+
+  it('registers a provider and sets it as active', () => {
+    const openai = mockProvider('openai');
+    registry.register(openai);
+
+    expect(registry.list()).toEqual(['openai']);
+    expect(registry.getActive()).toBe(openai);
+    expect(registry.getActiveName()).toBe('openai');
+  });
+
+  it('first registered provider becomes active', () => {
+    registry.register(mockProvider('openai'));
+    registry.register(mockProvider('anthropic'));
+
+    expect(registry.getActiveName()).toBe('openai');
+    expect(registry.list()).toEqual(['openai', 'anthropic']);
+  });
+
+  it('switches active provider', () => {
+    registry.register(mockProvider('openai'));
+    registry.register(mockProvider('anthropic'));
+
+    registry.setActive('anthropic');
+    expect(registry.getActiveName()).toBe('anthropic');
+  });
+
+  it('throws when setting unknown provider as active', () => {
+    expect(() => registry.setActive('unknown')).toThrow("Provider 'unknown' is not registered");
+  });
+
+  it('gets provider by name', () => {
+    const openai = mockProvider('openai');
+    registry.register(openai);
+
+    expect(registry.get('openai')).toBe(openai);
+    expect(registry.get('unknown')).toBeUndefined();
+  });
+
+  it('unregisters a provider', () => {
+    registry.register(mockProvider('openai'));
+    registry.register(mockProvider('anthropic'));
+
+    registry.unregister('openai');
+    expect(registry.list()).toEqual(['anthropic']);
+    // Active should switch to remaining provider
+    expect(registry.getActiveName()).toBe('anthropic');
+  });
+
+  it('unregistering active provider switches to next available', () => {
+    registry.register(mockProvider('openai'));
+    registry.register(mockProvider('anthropic'));
+    registry.setActive('openai');
+
+    registry.unregister('openai');
+    expect(registry.getActiveName()).toBe('anthropic');
+  });
+
+  it('unregistering last provider clears active', () => {
+    registry.register(mockProvider('openai'));
+    registry.unregister('openai');
+
+    expect(registry.getActive()).toBeNull();
+    expect(registry.getActiveName()).toBeNull();
+  });
+
+  it('active provider can complete', async () => {
+    const provider = mockProvider('openai');
+    registry.register(provider);
+
+    const active = registry.getActive()!;
+    const result = await active.complete({
+      messages: [{ role: 'user', content: 'Hello' }],
+    });
+
+    expect(result.content).toBe('Response from openai');
+    expect(result.finishReason).toBe('stop');
+    expect(provider.complete).toHaveBeenCalled();
+  });
+
+  it('active provider can list models', async () => {
+    registry.register(mockProvider('anthropic'));
+
+    const active = registry.getActive()!;
+    const models = await active.listModels();
+
+    expect(models).toEqual(['anthropic-model-1', 'anthropic-model-2']);
+  });
+});