diff --git a/tools/ui/src/lib/constants/settings-keys.constants.ts b/tools/ui/src/lib/constants/settings-keys.constants.ts
index 4d1b494dcd..955445d12e 100644
--- a/tools/ui/src/lib/constants/settings-keys.constants.ts
+++ b/tools/ui/src/lib/constants/settings-keys.constants.ts
@@ -41,6 +41,8 @@ export const SETTINGS_KEYS = {
 	MCP_SERVERS: 'mcpServers',
 	MENTION_SEARCH_MAX_DEPTH: 'mentionSearchMaxDepth',
 	MIN_P: 'min_p',
+	// Display
+	MODEL_GROUPING: 'modelGrouping',
 	PASTE_LONG_TEXT_TO_FILE_LEN: 'pasteLongTextToFileLen',
 	PDF_AS_IMAGE: 'pdfAsImage',
 	// Performance
diff --git a/tools/ui/src/lib/constants/settings.constants.ts b/tools/ui/src/lib/constants/settings.constants.ts
index cd816e7f28..a32a6d20db 100644
--- a/tools/ui/src/lib/constants/settings.constants.ts
+++ b/tools/ui/src/lib/constants/settings.constants.ts
@@ -4,9 +4,11 @@ import { SETTINGS_KEYS } from './settings-keys.constants';
 import { TITLE_GENERATION } from './title-generation.constants';
 import { FILE_GLOB_SEARCH_PICKERS } from './working-directory.constants';
 import {
+	Boxes,
 	Code,
 	Database,
 	Funnel,
+	Layers,
 	ListRestart,
 	Monitor,
 	Moon,
@@ -16,7 +18,7 @@ import {
 	Sun
 } from '@lucide/svelte';
 import { SyncableParameterType } from '$lib/enums';
-import { SettingsFieldType } from '$lib/enums/settings.enums';
+import { ModelGroupingMode, SettingsFieldType } from '$lib/enums/settings.enums';
 import { ColorMode } from '$lib/enums/ui.enums';
 import type {
 	SettingsConfigValue,
@@ -321,6 +323,17 @@ export const SETTINGS_REGISTRY: SettingsSectionEntry[] = [
 				label: 'Show full path in mentions',
 				type: SettingsFieldType.CHECKBOX
 			},
+			{
+				defaultValue: ModelGroupingMode.PROVIDER,
+				help: 'How the models manager groups its sections. One section per provider keeps every backend separate. By capability merges them into a llama-compat block, whose models can load and unload, and an OAI-compat block, which is chat only.',
+				key: SETTINGS_KEYS.MODEL_GROUPING,
+				label: 'Model grouping',
+				options: [
+					{ icon: Layers, label: 'One section per provider', value: ModelGroupingMode.PROVIDER },
+					{ icon: Boxes, label: 'By capability', value: ModelGroupingMode.COMPAT }
+				],
+				type: SettingsFieldType.SELECT
+			},
 			{
 				defaultValue: true,
 				help: 'Group models into families (e.g. "Qwen") in the model picker and the models manager. Turn it off to list every model on its own.',
diff --git a/tools/ui/src/lib/enums/settings.enums.ts b/tools/ui/src/lib/enums/settings.enums.ts
index 9911670b37..14d9fbe174 100644
--- a/tools/ui/src/lib/enums/settings.enums.ts
+++ b/tools/ui/src/lib/enums/settings.enums.ts
@@ -18,6 +18,14 @@ export enum SyncableParameterType {
 /**
  * Settings field type - defines the input type for settings fields
  */
+/** How the models manager builds its sections below Loaded and Favorites. */
+export enum ModelGroupingMode {
+	/** One llama-compat block and one OAI-compat block, families inside each. */
+	COMPAT = 'compat',
+	/** One section per provider, families inside each. */
+	PROVIDER = 'provider'
+}
+
 export enum SettingsFieldType {
 	CHECKBOX = 'checkbox',
 	INPUT = 'input',