diff --git a/__tests__/components/settings/llm-profiles/llm-settings-local-view.test.tsx b/__tests__/components/settings/llm-profiles/llm-settings-local-view.test.tsx
index 0d8ea3feb..4a4a97c8d 100644
--- a/__tests__/components/settings/llm-profiles/llm-settings-local-view.test.tsx
+++ b/__tests__/components/settings/llm-profiles/llm-settings-local-view.test.tsx
@@ -3,7 +3,10 @@ import { AxiosError } from "axios";
 import { screen, waitFor } from "@testing-library/react";
 import userEvent from "@testing-library/user-event";
 import { renderWithProviders } from "test-utils";
-import { LlmSettingsLocalView } from "#/components/features/settings/llm-profiles/llm-settings-local-view";
+import {
+  LlmSettingsLocalView,
+  shouldReapplyProfileAfterSave,
+} from "#/components/features/settings/llm-profiles/llm-settings-local-view";
 import * as useLlmProfilesHook from "#/hooks/query/use-llm-profiles";
 import * as useActivateLlmProfileHook from "#/hooks/mutation/use-activate-llm-profile";
 import * as useSaveLlmProfileHook from "#/hooks/mutation/use-save-llm-profile";
@@ -487,8 +490,7 @@ describe("LlmSettingsLocalView", () => {
         message: "Profile renamed",
       });
 
-      // Mock activateProfile
-      vi.mocked(ProfilesService.activateProfile).mockResolvedValue({
+      mockActivateMutateAsync.mockResolvedValue({
         name: "my-renamed-profile",
         message: "Profile activated",
         llm_applied: true,
@@ -516,9 +518,9 @@ describe("LlmSettingsLocalView", () => {
       // Click save
       await user.click(screen.getByTestId("save-profile-btn"));
 
-      // Verify activateProfile was called after rename and save
+      // Verify activation mutation was called after rename and save
       await waitFor(() => {
-        expect(ProfilesService.activateProfile).toHaveBeenCalledWith(
+        expect(mockActivateMutateAsync).toHaveBeenCalledWith(
           "my-renamed-profile",
         );
       });
@@ -631,3 +633,45 @@ describe("LlmSettingsLocalView", () => {
     });
   });
 });
+
+describe("shouldReapplyProfileAfterSave", () => {
+  it("reapplies when saving the active profile without renaming", () => {
+    expect(
+      shouldReapplyProfileAfterSave({
+        activeProfileName: "gpt-4-profile",
+        originalName: "gpt-4-profile",
+        savedName: "gpt-4-profile",
+      }),
+    ).toBe(true);
+  });
+
+  it("reapplies when the active profile was renamed", () => {
+    expect(
+      shouldReapplyProfileAfterSave({
+        activeProfileName: "gpt-4-profile",
+        originalName: "gpt-4-profile",
+        savedName: "my-renamed-profile",
+      }),
+    ).toBe(true);
+  });
+
+  it("reapplies when creating a profile with the active profile name", () => {
+    expect(
+      shouldReapplyProfileAfterSave({
+        activeProfileName: "gpt-4-profile",
+        originalName: null,
+        savedName: "gpt-4-profile",
+      }),
+    ).toBe(true);
+  });
+
+  it("does not reapply inactive profiles", () => {
+    expect(
+      shouldReapplyProfileAfterSave({
+        activeProfileName: "claude-profile",
+        originalName: "gpt-4-profile",
+        savedName: "gpt-4-profile",
+      }),
+    ).toBe(false);
+  });
+});
diff --git a/src/components/features/settings/llm-profiles/llm-settings-local-view.tsx b/src/components/features/settings/llm-profiles/llm-settings-local-view.tsx
index df98ccd07..daa909e61 100644
--- a/src/components/features/settings/llm-profiles/llm-settings-local-view.tsx
+++ b/src/components/features/settings/llm-profiles/llm-settings-local-view.tsx
@@ -11,6 +11,7 @@ import { ProfileNameInput } from "./profile-name-input";
 import { BrandButton } from "#/components/features/settings/brand-button";
 import { LlmSettingsScreen } from "#/routes/llm-settings";
 import { useSaveLlmProfile } from "#/hooks/mutation/use-save-llm-profile";
+import { useActivateLlmProfile } from "#/hooks/mutation/use-activate-llm-profile";
 import { useLlmProfiles } from "#/hooks/query/use-llm-profiles";
 import { useSettings } from "#/hooks/query/use-settings";
 import { useAgentSettingsSchema } from "#/hooks/query/use-agent-settings-schema";
@@ -49,6 +50,20 @@ interface EditingProfile {
   baseConfig: Record<string, unknown>;
 }
 
+export function shouldReapplyProfileAfterSave({
+  activeProfileName,
+  originalName,
+  savedName,
+}: {
+  activeProfileName: string | null | undefined;
+  originalName: string | null | undefined;
+  savedName: string;
+}): boolean {
+  if (!activeProfileName) return false;
+  if (originalName) return activeProfileName === originalName;
+  return activeProfileName === savedName;
+}
+
 /**
  * LlmSettingsLocalView provides an integrated view for managing LLM profiles
  * in local agent-server mode. It supports listing, creating, and editing profiles.
@@ -63,6 +78,7 @@ export function LlmSettingsLocalView() {
   const { t } = useTranslation("openhands");
   const { setHideSectionHeader } = useSettingsSectionHeader();
   const saveProfile = useSaveLlmProfile();
+  const activateProfile = useActivateLlmProfile();
   const { data: profilesData } = useLlmProfiles();
   const { data: settings } = useSettings();
   const { data: agentSchema } = useAgentSettingsSchema(
@@ -269,7 +285,11 @@ export function LlmSettingsLocalView() {
     const originalName = editingProfile?.profile.name;
     const isRename =
       viewMode === "edit" && originalName && originalName !== trimmedName;
-    const wasActive = profilesData?.active_profile === originalName;
+    const shouldReapplyActiveProfile = shouldReapplyProfileAfterSave({
+      activeProfileName: profilesData?.active_profile,
+      originalName,
+      savedName: trimmedName,
+    });
 
     setIsSaving(true);
     try {
@@ -290,10 +310,11 @@ export function LlmSettingsLocalView() {
         },
       });
 
-      // If the renamed profile was the active profile, re-activate it
-      // (the rename operation doesn't automatically update active_profile)
-      if (isRename && wasActive) {
-        await ProfilesService.activateProfile(trimmedName);
+      // Conversation start uses agent_settings.llm, not the profile row
+      // directly. Re-applying an active profile keeps those settings in sync
+      // after editing or recreating a profile with the active profile name.
+      if (shouldReapplyActiveProfile) {
+        await activateProfile.mutateAsync(trimmedName);
       }
 
       displaySuccessToast(
@@ -316,6 +337,7 @@ export function LlmSettingsLocalView() {
     editingProfile,
     profilesData?.active_profile,
     saveProfile,
+    activateProfile,
     t,
     handleBackToList,
   ]);