diff --git a/README.md b/README.md
index d8e72ed75c..0ae7929345 100644
--- a/README.md
+++ b/README.md
@@ -54,7 +54,7 @@ git clone https://github.com/simstudioai/sim.git
 cd sim
 
 # Start Sim Studio
-docker compose up -d --build
+docker compose -f docker-compose.prod.yml up -d
 ```
 
 Access the application at [http://localhost:3000/](http://localhost:3000/)
@@ -73,10 +73,13 @@ To use local models with Sim Studio:
 
 ```bash
 # With NVIDIA GPU support
-docker compose up --profile local-gpu -d --build
+docker compose -f docker-compose.ollama.yml up --profile local-gpu -d --build
 
 # Without GPU (CPU only)
-docker compose up --profile local-cpu -d --build
+docker compose -f docker-compose.ollama.yml up --profile local-cpu -d --build
+
+# If hosting on a server, update the environment variables in the docker-compose.prod.yml file to include the server's public IP then start again (OLLAMA_URL to i.e. http://1.1.1.1:11434)
+docker compose -f docker-compose.prod.yml up -d
 ```
 
 ### Option 3: Dev Containers
diff --git a/apps/sim/lib/env.ts b/apps/sim/lib/env.ts
index 94b1d51fb3..ca24019c90 100644
--- a/apps/sim/lib/env.ts
+++ b/apps/sim/lib/env.ts
@@ -53,7 +53,7 @@ export const env = createEnv({
     JWT_SECRET: z.string().min(1).optional(),
     BROWSERBASE_API_KEY: z.string().min(1).optional(),
     BROWSERBASE_PROJECT_ID: z.string().min(1).optional(),
-    OLLAMA_HOST: z.string().url().optional(),
+    OLLAMA_URL: z.string().url().optional(),
     SENTRY_ORG: z.string().optional(),
     SENTRY_PROJECT: z.string().optional(),
     SENTRY_AUTH_TOKEN: z.string().optional(),
diff --git a/apps/sim/next.config.ts b/apps/sim/next.config.ts
index 410b4930a4..cc83ccf7cb 100644
--- a/apps/sim/next.config.ts
+++ b/apps/sim/next.config.ts
@@ -138,7 +138,7 @@ const nextConfig: NextConfig = {
           },
           {
             key: 'Content-Security-Policy',
-            value: `default-src 'self'; script-src 'self' 'unsafe-inline' 'unsafe-eval' https://*.google.com https://apis.google.com https://*.vercel-scripts.com https://*.vercel-insights.com https://vercel.live https://*.vercel.live https://vercel.com https://*.vercel.app; style-src 'self' 'unsafe-inline' https://fonts.googleapis.com; img-src 'self' data: blob: https://*.googleusercontent.com https://*.google.com https://*.atlassian.com https://cdn.discordapp.com; media-src 'self' blob:; font-src 'self' https://fonts.gstatic.com; connect-src 'self' ${process.env.OLLAMA_HOST || 'http://localhost:11434'} https://api.browser-use.com https://*.googleapis.com https://*.amazonaws.com https://*.s3.amazonaws.com https://*.vercel-insights.com https://*.atlassian.com https://vercel.live https://*.vercel.live https://vercel.com https://*.vercel.app; frame-src https://drive.google.com https://*.google.com; frame-ancestors 'self'; form-action 'self'; base-uri 'self'; object-src 'none'`,
+            value: `default-src 'self'; script-src 'self' 'unsafe-inline' 'unsafe-eval' https://*.google.com https://apis.google.com https://*.vercel-scripts.com https://*.vercel-insights.com https://vercel.live https://*.vercel.live https://vercel.com https://*.vercel.app; style-src 'self' 'unsafe-inline' https://fonts.googleapis.com; img-src 'self' data: blob: https://*.googleusercontent.com https://*.google.com https://*.atlassian.com https://cdn.discordapp.com; media-src 'self' blob:; font-src 'self' https://fonts.gstatic.com; connect-src 'self' ${env.OLLAMA_URL || 'http://localhost:11434'} https://api.browser-use.com https://*.googleapis.com https://*.amazonaws.com https://*.s3.amazonaws.com https://*.vercel-insights.com https://*.atlassian.com https://vercel.live https://*.vercel.live https://vercel.com https://*.vercel.app; frame-src https://drive.google.com https://*.google.com; frame-ancestors 'self'; form-action 'self'; base-uri 'self'; object-src 'none'`,
           },
         ],
       },
diff --git a/apps/sim/providers/ollama/index.ts b/apps/sim/providers/ollama/index.ts
index 0464631a15..4009230dbd 100644
--- a/apps/sim/providers/ollama/index.ts
+++ b/apps/sim/providers/ollama/index.ts
@@ -1,4 +1,5 @@
 import OpenAI from 'openai'
+import { env } from '@/lib/env'
 import { createLogger } from '@/lib/logs/console-logger'
 import { useOllamaStore } from '@/stores/ollama/store'
 import { executeTool } from '@/tools'
@@ -6,7 +7,7 @@ import { ProviderConfig, ProviderRequest, ProviderResponse, TimeSegment } from '
 import { ModelsObject } from './types'
 
 const logger = createLogger('OllamaProvider')
-const OLLAMA_HOST = process.env.OLLAMA_HOST || 'http://localhost:11434'
+const OLLAMA_HOST = env.OLLAMA_URL || 'http://localhost:11434'
 
 export const ollamaProvider: ProviderConfig = {
   id: 'ollama',
diff --git a/docker-compose.local.yml b/docker-compose.local.yml
index 4482e819d2..0b28e948d1 100644
--- a/docker-compose.local.yml
+++ b/docker-compose.local.yml
@@ -21,6 +21,7 @@ services:
       - GITHUB_CLIENT_ID=${GITHUB_CLIENT_ID:-placeholder}
       - GITHUB_CLIENT_SECRET=${GITHUB_CLIENT_SECRET:-placeholder}
       - RESEND_API_KEY=${RESEND_API_KEY:-placeholder}
+      - OLLAMA_URL=${OLLAMA_URL:-http://localhost:11434}
     depends_on:
       db:
         condition: service_healthy
diff --git a/docker-compose.prod.yml b/docker-compose.prod.yml
index dd68ec04bf..2fa3f38430 100644
--- a/docker-compose.prod.yml
+++ b/docker-compose.prod.yml
@@ -20,6 +20,7 @@ services:
       - GITHUB_CLIENT_ID=${GITHUB_CLIENT_ID:-placeholder}
       - GITHUB_CLIENT_SECRET=${GITHUB_CLIENT_SECRET:-placeholder}
       - RESEND_API_KEY=${RESEND_API_KEY:-placeholder}
+      - OLLAMA_URL=${OLLAMA_URL:-http://localhost:11434}
     depends_on:
       db:
         condition: service_healthy