Obsidian Local GPT is a plugin that embeds AI assistance directly into the Obsidian knowledge management environment while prioritizing privacy and local execution. It supports both local models through Ollama and OpenAI-compatible APIs, allowing users to choose between fully offline workflows or hybrid setups. The plugin introduces an “Action Palette” system that enables users to run predefined or custom AI-powered actions on selected text, notes, or entire documents. It integrates deeply with Obsidian’s structure by pulling context from backlinks, linked notes, and even external files like PDFs to enhance responses. The system also supports multimodal capabilities, including image analysis when paired with compatible models. Users can create reusable prompts, install community-provided actions, and manage workflows directly inside their note-taking environment.