diff --git a/apps/desktop/src/components/local-chat.tsx b/apps/desktop/src/components/local-chat.tsx
index 5384c063..ade9db6c 100644
--- a/apps/desktop/src/components/local-chat.tsx
+++ b/apps/desktop/src/components/local-chat.tsx
@@ -1,6 +1,10 @@
+import { useState, useCallback } from 'react'
 import { Loading } from '@multica/ui/components/ui/loading'
 import { ChatView } from '@multica/ui/components/chat-view'
 import { useLocalChat } from '../hooks/use-local-chat'
+import { useProvider } from '../hooks/use-provider'
+import { ApiKeyDialog } from './api-key-dialog'
+import { OAuthDialog } from './oauth-dialog'
 
 export function LocalChat() {
   const {
@@ -17,8 +21,41 @@ export function LocalChat() {
     sendMessage,
     loadMore,
     resolveApproval,
+    clearError,
   } = useLocalChat()
 
+  const { providers, current, setProvider: switchProvider, refresh: refreshProviders } = useProvider()
+
+  // Provider config dialog state
+  const [apiKeyDialogOpen, setApiKeyDialogOpen] = useState(false)
+  const [oauthDialogOpen, setOauthDialogOpen] = useState(false)
+
+  const handleConfigureProvider = useCallback(() => {
+    const providerId = current?.provider
+    if (!providerId) return
+
+    const meta = providers.find((p) => p.id === providerId)
+    if (!meta) return
+
+    if (meta.authMethod === 'oauth') {
+      setOauthDialogOpen(true)
+    } else {
+      setApiKeyDialogOpen(true)
+    }
+  }, [current, providers])
+
+  const handleProviderConfigSuccess = useCallback(async () => {
+    const providerId = current?.provider
+    if (!providerId) return
+
+    await refreshProviders()
+    await switchProvider(providerId)
+    clearError()
+  }, [current, refreshProviders, switchProvider, clearError])
+
+  // Derive provider info for dialogs
+  const currentMeta = current ? providers.find((p) => p.id === current.provider) : null
+
   if (initError) {
     return (
       <div className="flex-1 flex items-center justify-center text-sm text-destructive">
@@ -36,19 +73,48 @@ export function LocalChat() {
     )
   }
 
+  // Show "Configure" button when error is about provider/API key
+  const errorAction = error?.code === 'AGENT_ERROR' && currentMeta
+    ? { label: 'Configure', onClick: handleConfigureProvider }
+    : undefined
+
   return (
-    <ChatView
-      messages={messages}
-      streamingIds={streamingIds}
-      isLoading={isLoading}
-      isLoadingHistory={isLoadingHistory}
-      isLoadingMore={isLoadingMore}
-      hasMore={hasMore}
-      error={error}
-      pendingApprovals={pendingApprovals}
-      sendMessage={sendMessage}
-      loadMore={loadMore}
-      resolveApproval={resolveApproval}
-    />
+    <>
+      <ChatView
+        messages={messages}
+        streamingIds={streamingIds}
+        isLoading={isLoading}
+        isLoadingHistory={isLoadingHistory}
+        isLoadingMore={isLoadingMore}
+        hasMore={hasMore}
+        error={error}
+        pendingApprovals={pendingApprovals}
+        sendMessage={sendMessage}
+        loadMore={loadMore}
+        resolveApproval={resolveApproval}
+        errorAction={errorAction}
+      />
+
+      {currentMeta && currentMeta.authMethod === 'api-key' && (
+        <ApiKeyDialog
+          open={apiKeyDialogOpen}
+          onOpenChange={setApiKeyDialogOpen}
+          providerId={currentMeta.id}
+          providerName={currentMeta.name}
+          onSuccess={handleProviderConfigSuccess}
+        />
+      )}
+
+      {currentMeta && currentMeta.authMethod === 'oauth' && (
+        <OAuthDialog
+          open={oauthDialogOpen}
+          onOpenChange={setOauthDialogOpen}
+          providerId={currentMeta.id}
+          providerName={currentMeta.name}
+          loginCommand={currentMeta.loginCommand}
+          onSuccess={handleProviderConfigSuccess}
+        />
+      )}
+    </>
   )
 }
diff --git a/apps/desktop/src/hooks/use-local-chat.ts b/apps/desktop/src/hooks/use-local-chat.ts
index c6353e12..749ee071 100644
--- a/apps/desktop/src/hooks/use-local-chat.ts
+++ b/apps/desktop/src/hooks/use-local-chat.ts
@@ -142,6 +142,10 @@ export function useLocalChat() {
     [],
   )
 
+  const clearError = useCallback(() => {
+    chatRef.current.setError(null)
+  }, [])
+
   return {
     agentId,
     initError,
@@ -156,5 +160,6 @@ export function useLocalChat() {
     sendMessage,
     loadMore,
     resolveApproval,
+    clearError,
   }
 }
diff --git a/packages/ui/src/components/chat-view.tsx b/packages/ui/src/components/chat-view.tsx
index 4582b7be..b47edf0b 100644
--- a/packages/ui/src/components/chat-view.tsx
+++ b/packages/ui/src/components/chat-view.tsx
@@ -38,6 +38,8 @@ export interface ChatViewProps {
   loadMore?: () => void;
   resolveApproval: (approvalId: string, decision: "allow-once" | "allow-always" | "deny") => void;
   onDisconnect?: () => void;
+  /** Optional action button in the error banner (e.g. "Configure Provider") */
+  errorAction?: { label: string; onClick: () => void };
 }
 
 export function ChatView({
@@ -53,6 +55,7 @@ export function ChatView({
   loadMore,
   resolveApproval,
   onDisconnect,
+  errorAction,
 }: ChatViewProps) {
   const mainRef = useRef<HTMLElement>(null);
   const sentinelRef = useRef<HTMLDivElement>(null);
@@ -219,16 +222,28 @@ export function ChatView({
         <div className="container px-4" role="alert" aria-live="polite">
           <div className="rounded-lg bg-destructive/5 border border-destructive/15 text-xs px-3 py-2 flex items-center justify-between gap-3">
             <span className="text-foreground leading-snug">{error.message}</span>
-            {onDisconnect && (
-              <Button
-                variant="destructive"
-                size="sm"
-                onClick={onDisconnect}
-                className="shrink-0 text-xs h-7 px-2.5"
-              >
-                Disconnect
-              </Button>
-            )}
+            <div className="flex items-center gap-2 shrink-0">
+              {errorAction && (
+                <Button
+                  variant="outline"
+                  size="sm"
+                  onClick={errorAction.onClick}
+                  className="shrink-0 text-xs h-7 px-2.5"
+                >
+                  {errorAction.label}
+                </Button>
+              )}
+              {onDisconnect && (
+                <Button
+                  variant="destructive"
+                  size="sm"
+                  onClick={onDisconnect}
+                  className="shrink-0 text-xs h-7 px-2.5"
+                >
+                  Disconnect
+                </Button>
+              )}
+            </div>
           </div>
         </div>
       )}