diff --git a/scripts/setup/update-models.sh b/scripts/setup/update-models.sh
index 58126ba..7ad943a 100755
--- a/scripts/setup/update-models.sh
+++ b/scripts/setup/update-models.sh
@@ -1,9 +1,10 @@
 #!/usr/bin/env bash
-# Updates lmstudio and/or ollama model listings in opencode.json
+# Updates vllm/lmstudio/ollama model listings in opencode.json
 # by querying their /v1/models endpoints.
 #
 # Usage:
-#   ./update-models.sh                 # update both
+#   ./update-models.sh                 # update configured defaults
+#   ./update-models.sh vllm            # update only vllm
 #   ./update-models.sh lmstudio        # update only lmstudio
 #   ./update-models.sh ollama          # update only ollama
 #
@@ -33,6 +34,18 @@ get_display_name() {
   jq -r ".provider.${1}.name // \"${1}\"" "$CONFIG"
 }
 
+# Emit the default opencode limits for locally served OpenAI-compatible models.
+# The output limit must stay below the context window so auto-compaction can
+# reserve space before the upstream API rejects input_tokens + max_tokens.
+model_limit_json() {
+  local provider="$1"
+  local model_id="$2"
+
+  case "${provider}:${model_id}" in
+    *) jq -cn '{context: 262144, output: 32000}' ;;
+  esac
+}
+
 # Fetch models from API endpoint and build the opencode models object.
 # Preserves any existing entries that have extra metadata (limits, modalities, variants)
 # beyond just a name — so your manual overrides aren't lost.
@@ -69,6 +82,9 @@ build_models_json() {
     local existing_entry
     existing_entry=$(echo "$existing" | jq -r --arg id "$model_id" '.[$id] // empty')
 
+    local default_limit
+    default_limit=$(model_limit_json "$provider" "$model_id")
+
     local has_extras="false"
     if [[ -n "$existing_entry" ]]; then
       local key_count
@@ -83,14 +99,16 @@ build_models_json() {
       new_models=$(echo "$new_models" | jq \
         --arg id "$model_id" \
         --argjson entry "$existing_entry" \
+        --argjson limit "$default_limit" \
         --arg name "${model_id} (${display_name})" \
-        '.[$id] = ($entry | .name = $name)')
+        '.[$id] = ($entry | .name = $name | .limit = (.limit // $limit))')
     else
       # Simple entry with just a name
       new_models=$(echo "$new_models" | jq \
         --arg id "$model_id" \
+        --argjson limit "$default_limit" \
         --arg name "${model_id} (${display_name})" \
-        '.[$id] = { "name": $name }')
+        '.[$id] = { "name": $name, "limit": $limit }')
     fi
   done <<< "$model_ids"
 
@@ -136,7 +154,7 @@ update_provider() {
 
 # --- Main ---
 
-targets=("${@:-lmstudio ollama}")
+targets=("${@:-vllm ollama}")
 errors=0
 
 for target in $targets; do