diff --git a/src/commands/setup.test.ts b/src/commands/setup.test.ts
new file mode 100644
index 00000000000..c72850d08b0
--- /dev/null
+++ b/src/commands/setup.test.ts
@@ -0,0 +1,60 @@
+import fs from "node:fs/promises";
+import path from "node:path";
+import { describe, expect, it, vi } from "vitest";
+import { withTempHome } from "../../test/helpers/temp-home.js";
+import { setupCommand } from "./setup.js";
+
+describe("setupCommand", () => {
+  it("writes gateway.mode=local on first run", async () => {
+    await withTempHome(async (home) => {
+      const runtime = {
+        log: vi.fn(),
+        error: vi.fn(),
+        exit: vi.fn(),
+      };
+
+      await setupCommand(undefined, runtime);
+
+      const configPath = path.join(home, ".openclaw", "openclaw.json");
+      const raw = await fs.readFile(configPath, "utf-8");
+
+      expect(raw).toContain('"mode": "local"');
+      expect(raw).toContain('"workspace"');
+    });
+  });
+
+  it("adds gateway.mode=local to an existing config without overwriting workspace", async () => {
+    await withTempHome(async (home) => {
+      const runtime = {
+        log: vi.fn(),
+        error: vi.fn(),
+        exit: vi.fn(),
+      };
+      const configDir = path.join(home, ".openclaw");
+      const configPath = path.join(configDir, "openclaw.json");
+      const workspace = path.join(home, "custom-workspace");
+
+      await fs.mkdir(configDir, { recursive: true });
+      await fs.writeFile(
+        configPath,
+        JSON.stringify({
+          agents: {
+            defaults: {
+              workspace,
+            },
+          },
+        }),
+      );
+
+      await setupCommand(undefined, runtime);
+
+      const raw = JSON.parse(await fs.readFile(configPath, "utf-8")) as {
+        agents?: { defaults?: { workspace?: string } };
+        gateway?: { mode?: string };
+      };
+
+      expect(raw.agents?.defaults?.workspace).toBe(workspace);
+      expect(raw.gateway?.mode).toBe("local");
+    });
+  });
+});
diff --git a/src/commands/setup.ts b/src/commands/setup.ts
index 3045f748b19..007e83af339 100644
--- a/src/commands/setup.ts
+++ b/src/commands/setup.ts
@@ -50,14 +50,30 @@ export async function setupCommand(
         workspace,
       },
     },
+    gateway: {
+      ...cfg.gateway,
+      mode: cfg.gateway?.mode ?? "local",
+    },
   };
 
-  if (!existingRaw.exists || defaults.workspace !== workspace) {
+  if (
+    !existingRaw.exists ||
+    defaults.workspace !== workspace ||
+    cfg.gateway?.mode !== next.gateway?.mode
+  ) {
     await writeConfigFile(next);
     if (!existingRaw.exists) {
       runtime.log(`Wrote ${formatConfigPath(configPath)}`);
     } else {
-      logConfigUpdated(runtime, { path: configPath, suffix: "(set agents.defaults.workspace)" });
+      const updates: string[] = [];
+      if (defaults.workspace !== workspace) {
+        updates.push("set agents.defaults.workspace");
+      }
+      if (cfg.gateway?.mode !== next.gateway?.mode) {
+        updates.push("set gateway.mode");
+      }
+      const suffix = updates.length > 0 ? `(${updates.join(", ")})` : undefined;
+      logConfigUpdated(runtime, { path: configPath, suffix });
     }
   } else {
     runtime.log(`Config OK: ${formatConfigPath(configPath)}`);