diff --git a/packages/settings-ui/src/connections-status.test.ts b/packages/settings-ui/src/connections-status.test.ts
index e8b3630ef..100f6fecd 100644
--- a/packages/settings-ui/src/connections-status.test.ts
+++ b/packages/settings-ui/src/connections-status.test.ts
@@ -36,9 +36,18 @@ describe("connectorStatus", () => {
     expect(result.status).toBe("not_connected");
   });
 
-  test("not_connected when a provider exists but no credential points at it", () => {
+  test("connected when a provider exists even if the credential list omits inherited credentials", () => {
     const result = connectorStatus("linear", [], [provider()]);
-    expect(result.status).toBe("not_connected");
+    expect(result.status).toBe("connected");
+  });
+
+  test("connected when local Ollama has an active credential", () => {
+    const result = connectorStatus(
+      "ollama",
+      [credential({ providerId: "ollama-provider", status: "active" })],
+      [provider({ id: "ollama-provider", name: "ollama", plugin: "ollama" })],
+    );
+    expect(result.status).toBe("connected");
   });
 
   test("connected when the newest credential is active", () => {
@@ -91,14 +100,14 @@ describe("connectorStatus", () => {
     const result = connectorStatus("linear", [older, newer], [provider()]);
     expect(result.status).toBe("connected");
     if (result.status === "connected") {
-      expect(result.credential.id).toBe("cred-new");
+      expect(result.credential?.id).toBe("cred-new");
     }
   });
 
-  test("ignores credentials belonging to a different provider", () => {
+  test("keeps the provider connected when only unrelated credentials are listed", () => {
     const other = credential({ providerId: "provider-2", status: "active" });
     const result = connectorStatus("linear", [other], [provider()]);
-    expect(result.status).toBe("not_connected");
+    expect(result.status).toBe("connected");
   });
 
   // Regression for the bug where the card grid matched on
diff --git a/packages/settings-ui/src/connections-status.ts b/packages/settings-ui/src/connections-status.ts
index 3e59c851e..9e8d12b0a 100644
--- a/packages/settings-ui/src/connections-status.ts
+++ b/packages/settings-ui/src/connections-status.ts
@@ -8,7 +8,7 @@ export type ConnectorStatus = "not_connected" | "connected" | "needs_attention";
 
 export type ConnectorStatusResult =
   | { readonly status: "not_connected" }
-  | { readonly status: "connected"; readonly credential: Credential }
+  | { readonly status: "connected"; readonly credential?: Credential }
   | { readonly status: "needs_attention"; readonly credential: Credential };
 
 /**
@@ -35,7 +35,7 @@ export function connectorStatus(
   if (provider === undefined) return { status: "not_connected" };
 
   const matches = credentials.filter((c) => c.providerId === provider.id);
-  if (matches.length === 0) return { status: "not_connected" };
+  if (matches.length === 0) return { status: "connected" };
 
   const newest = matches.reduce((latest, candidate) => {
     const latestKey = latest.createdAt ?? latest.updatedAt;