diff --git a/tools/ui/src/lib/components/app/models/ModelsManager/ModelsManager.svelte b/tools/ui/src/lib/components/app/models/ModelsManager/ModelsManager.svelte
index a7e0247358..871b964dda 100644
--- a/tools/ui/src/lib/components/app/models/ModelsManager/ModelsManager.svelte
+++ b/tools/ui/src/lib/components/app/models/ModelsManager/ModelsManager.svelte
@@ -14,14 +14,7 @@
 		saveOverrides
 	} from './utils';
 	import { LOCAL_BACKEND_ID } from '$lib/constants';
-	import { ModelGroupingMode } from '$lib/enums/settings.enums';
-	import {
-		backendsStore,
-		conversationsStore,
-		modelsStore,
-		settingsStore,
-		uiStore
-	} from '$lib/stores';
+	import { backendsStore, conversationsStore, modelsStore, uiStore } from '$lib/stores';
 	import type { ModelOption } from '$lib/types/models';
 	import { getBackend } from '$lib/utils/api-base';
 	import { getBackendCapabilities } from '$lib/utils/backend';
@@ -142,79 +135,34 @@
 			});
 		}
 
-		// by capability: one block whose models can load and unload, one that is chat only
-		if (settingsStore.config.modelGrouping === ModelGroupingMode.COMPAT) {
-			const local = (entry: ModelQuantGroup) => entry.base.backendId === LOCAL_BACKEND_ID;
-			const loadable: ModelQuantGroup[] = [];
-			const chatOnly: ModelQuantGroup[] = [];
+		const localItems = byBackend.get(LOCAL_BACKEND_ID);
 
-			for (const entry of entries) {
-				if (claimed.has(entry.key) || hiddenKeys.has(entry.key)) continue;
+		if (localItems?.length) {
+			ordered.push({
+				backendId: LOCAL_BACKEND_ID,
+				isLocal: true,
+				items: localItems,
+				key: LOCAL_BACKEND_ID,
+				kind: 'local',
+				label: 'Local models'
+			});
+		}
 
-				const canLoad = getBackendCapabilities(getBackend(entry.base.backendId)).loadUnload;
+		for (const backend of backendsStore.enabled) {
+			if (backend.id === LOCAL_BACKEND_ID) continue;
 
-				(canLoad ? loadable : chatOnly).push(entry);
-			}
+			const items = byBackend.get(backend.id);
 
-			// the bundled server leads the block it belongs to
-			const leading = (list: ModelQuantGroup[]) =>
-				[...list].sort((a, b) => Number(local(b)) - Number(local(a)));
-
-			if (loadable.length) {
+			if (items?.length) {
 				ordered.push({
-					backendId: null,
+					backendId: backend.id,
 					isLocal: false,
-					items: leading(loadable),
-					key: 'llama-compat',
-					kind: 'compat',
-					label: 'Llama-compat'
+					items,
+					key: backend.id,
+					kind: 'provider',
+					label: backend.name
 				});
 			}
-
-			if (chatOnly.length) {
-				ordered.push({
-					backendId: null,
-					isLocal: false,
-					// one repo, one row per provider that serves it
-					items: groupModelQuants(
-						chatOnly.flatMap((entry) => entry.quants),
-						true
-					),
-					key: 'oai-compat',
-					kind: 'compat',
-					label: 'OAI-compat'
-				});
-			}
-		} else {
-			const localItems = byBackend.get(LOCAL_BACKEND_ID);
-
-			if (localItems?.length) {
-				ordered.push({
-					backendId: LOCAL_BACKEND_ID,
-					isLocal: true,
-					items: localItems,
-					key: LOCAL_BACKEND_ID,
-					kind: 'local',
-					label: 'Local models'
-				});
-			}
-
-			for (const backend of backendsStore.enabled) {
-				if (backend.id === LOCAL_BACKEND_ID) continue;
-
-				const items = byBackend.get(backend.id);
-
-				if (items?.length) {
-					ordered.push({
-						backendId: backend.id,
-						isLocal: false,
-						items,
-						key: backend.id,
-						kind: 'provider',
-						label: backend.name
-					});
-				}
-			}
 		}
 
 		if (hidden.length) {
diff --git a/tools/ui/src/lib/components/app/models/ModelsSelector/ModelsSelectorList.svelte b/tools/ui/src/lib/components/app/models/ModelsSelector/ModelsSelectorList.svelte
index e2eee8bc91..4d58b89b7e 100644
--- a/tools/ui/src/lib/components/app/models/ModelsSelector/ModelsSelectorList.svelte
+++ b/tools/ui/src/lib/components/app/models/ModelsSelector/ModelsSelectorList.svelte
@@ -1,6 +1,6 @@
 <script lang="ts">
 	import ModelsSelectorDownloadItem from './ModelsSelectorDownloadItem.svelte';
-	import { Boxes, Heart, Power } from '@lucide/svelte';
+	import { Heart, Power } from '@lucide/svelte';
 	import { GroupedList, ModelAvatar, ModelsSelectorOption } from '$lib/components/app';
 	import { ModelsSection } from '$lib/components/app';
 	import { DialogConfirmDownload } from '$lib/components/app/dialogs';
@@ -12,10 +12,7 @@
 	} from '$lib/components/app/navigation/utils';
 	import { LOCAL_BACKEND_ID, MODEL_ROW_WINDOW } from '$lib/constants';
 	import { ModelDownloadConfirmAction } from '$lib/enums';
-	import { ModelGroupingMode } from '$lib/enums/settings.enums';
 	import { modelsStore, settingsStore } from '$lib/stores';
-	import { getBackend } from '$lib/utils/api-base';
-	import { getBackendCapabilities } from '$lib/utils/backend';
 	import { groupModelFamilies, type ModelFamilyGroup } from '$lib/utils/model-families';
 
 	interface Props {
@@ -89,29 +86,6 @@
 	let headerClass = $derived(`${sectionHeaderClass} sticky z-10 bg-popover`);
 	const headerStyle = 'top: var(--dropdown-sticky-height, 0px)';
 
-	/** By capability: one block whose models can load and unload, one that is chat only. */
-	let compatSections = $derived.by(() => {
-		const localItems = localGroups.available.flatMap((group) => group.items);
-		const canLoad = (backendId: string) => getBackendCapabilities(getBackend(backendId)).loadUnload;
-		const loadable = groups.providers.filter((provider) => canLoad(provider.backendId));
-		const chatOnly = groups.providers.filter((provider) => !canLoad(provider.backendId));
-
-		return [
-			{
-				icon: 'logo' as const,
-				items: [...localItems, ...loadable.flatMap((provider) => provider.items)],
-				key: 'llama-compat',
-				label: 'Llama-compat'
-			},
-			{
-				icon: 'boxes' as const,
-				items: chatOnly.flatMap((provider) => provider.items),
-				key: 'oai-compat',
-				label: 'OAI-compat'
-			}
-		].filter((section) => section.items.length > 0);
-	});
-
 	/** In-flight / paused downloads, tracked by the status feed. */
 	let getDownloadEntries = $derived(modelsStore.status.getDownloadEntries());
 
@@ -243,74 +217,49 @@
 	{/if}
 {/snippet}
 
-{#if settingsStore.config.modelGrouping === ModelGroupingMode.COMPAT}
-	{#snippet compatSection(
-		label: string,
-		items: ModelItem[],
-		iconKind: 'boxes' | 'logo',
-		key: string
-	)}
-		<ModelsSection {label} persistKey={key} revealChevronOnHover sticky>
-			{#snippet icon()}
-				{#if iconKind === 'logo'}
-					<Logo class="shrink-0" style="--size: 0.875rem" />
-				{:else}
-					<Boxes class="h-3.5 w-3.5 shrink-0" />
-				{/if}
-			{/snippet}
+{#if groups.loaded.length > 0 || groups.available.length > 0}
+	<ModelsSection label="Local models" persistKey={LOCAL_BACKEND_ID} revealChevronOnHover sticky>
+		{#snippet icon()}
+			<Logo class="shrink-0" style="--size: 0.875rem" />
+		{/snippet}
 
-			{@render listRows(items, key)}
-		</ModelsSection>
-	{/snippet}
-
-	{#each compatSections as section (section.key)}
-		{@render compatSection(section.label, section.items, section.icon, section.key)}
-	{/each}
-{:else}
-	{#if groups.loaded.length > 0 || groups.available.length > 0}
-		<ModelsSection label="Local models" persistKey={LOCAL_BACKEND_ID} revealChevronOnHover sticky>
-			{#snippet icon()}
-				<Logo class="shrink-0" style="--size: 0.875rem" />
-			{/snippet}
-
-			{@render localRows()}
-		</ModelsSection>
-	{/if}
-
-	<!-- One section per remote provider. -->
-	{#each groups.providers as provider (provider.backendId)}
-		<ModelsSection
-			backendId={provider.backendId}
-			error={Boolean(provider.error)}
-			label={provider.name}
-			loading={provider.loading}
-			onBack={onProviderBack}
-			persistKey={provider.backendId}
-			revealChevronOnHover
-			sticky
-		>
-			{#if provider.items.length > 0}
-				{@render listRows(provider.items, provider.backendId)}
-
-				{#if onProviderOpen && provider.matched > provider.items.length}
-					<!-- same box as a model row, it opens the provider's full list -->
-					<button
-						class="flex w-full cursor-pointer items-center gap-2 rounded-sm p-2 text-left text-sm text-muted-foreground transition hover:bg-accent hover:text-foreground focus:outline-none"
-						onclick={() => onProviderOpen(provider.backendId)}
-						type="button"
-					>
-						+ {provider.matched - provider.items.length} more
-					</button>
-				{/if}
-			{:else if provider.catalog === 0}
-				<p class="px-4 pb-2 text-xs text-muted-foreground">
-					{provider.error ?? (provider.loading ? 'Loading models...' : 'No models')}
-				</p>
-			{/if}
-		</ModelsSection>
-	{/each}
+		{@render localRows()}
+	</ModelsSection>
 {/if}
 
+<!-- One section per remote provider. -->
+{#each groups.providers as provider (provider.backendId)}
+	<ModelsSection
+		backendId={provider.backendId}
+		error={Boolean(provider.error)}
+		label={provider.name}
+		loading={provider.loading}
+		onBack={onProviderBack}
+		persistKey={provider.backendId}
+		revealChevronOnHover
+		sticky
+	>
+		{#if provider.items.length > 0}
+			{@render listRows(provider.items, provider.backendId)}
+
+			{#if onProviderOpen && provider.matched > provider.items.length}
+				<!-- same box as a model row, it opens the provider's full list -->
+				<button
+					class="flex w-full cursor-pointer items-center gap-2 rounded-sm p-2 text-left text-sm text-muted-foreground transition hover:bg-accent hover:text-foreground focus:outline-none"
+					onclick={() => onProviderOpen(provider.backendId)}
+					type="button"
+				>
+					+ {provider.matched - provider.items.length} more
+				</button>
+			{/if}
+		{:else if provider.catalog === 0}
+			<p class="px-4 pb-2 text-xs text-muted-foreground">
+				{provider.error ?? (provider.loading ? 'Loading models...' : 'No models')}
+			</p>
+		{/if}
+	</ModelsSection>
+{/each}
+
 <DialogConfirmDownload
 	action={ModelDownloadConfirmAction.CANCEL}
 	onClose={() => (cancelOpen = false)}
diff --git a/tools/ui/src/lib/constants/settings-keys.constants.ts b/tools/ui/src/lib/constants/settings-keys.constants.ts
index 955445d12e..502058c1c9 100644
--- a/tools/ui/src/lib/constants/settings-keys.constants.ts
+++ b/tools/ui/src/lib/constants/settings-keys.constants.ts
@@ -42,7 +42,6 @@ export const SETTINGS_KEYS = {
 	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 a32a6d20db..93c9d432c1 100644
--- a/tools/ui/src/lib/constants/settings.constants.ts
+++ b/tools/ui/src/lib/constants/settings.constants.ts
@@ -4,21 +4,18 @@ 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,
 	PencilRuler,
-	Server,
 	SlidersVertical,
 	Sun
 } from '@lucide/svelte';
 import { SyncableParameterType } from '$lib/enums';
-import { ModelGroupingMode, SettingsFieldType } from '$lib/enums/settings.enums';
+import { SettingsFieldType } from '$lib/enums/settings.enums';
 import { ColorMode } from '$lib/enums/ui.enums';
 import type {
 	SettingsConfigValue,
@@ -199,13 +196,6 @@ export const SETTINGS_REGISTRY: SettingsSectionEntry[] = [
 		slug: SETTINGS_SECTION_SLUGS.GENERAL,
 		title: SETTINGS_SECTION_TITLES.GENERAL
 	},
-	// Providers
-	{
-		icon: Server,
-		settings: [],
-		slug: SETTINGS_SECTION_SLUGS.BACKENDS,
-		title: SETTINGS_SECTION_TITLES.BACKENDS
-	},
 	// Display
 	{
 		icon: Monitor,
@@ -323,17 +313,6 @@ 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 14d9fbe174..9911670b37 100644
--- a/tools/ui/src/lib/enums/settings.enums.ts
+++ b/tools/ui/src/lib/enums/settings.enums.ts
@@ -18,14 +18,6 @@ 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',