diff --git a/README.md b/README.md
index bebdaea..911b84c 100644
--- a/README.md
+++ b/README.md
@@ -18,16 +18,16 @@ make install              # create venv + install deps
 cp .env.example .env      # configure environment
 
 ollama serve              # separate terminal
-ollama pull llama3.1:8b-instruct  # Required for reliable tool calling
+ollama pull qwen2.5:14b  # Required for reliable tool calling
 
 make dev                  # http://localhost:8000
 make test                 # no Ollama needed
 ```
 
-**Note:** llama3.1:8b-instruct is used instead of llama3.2 because it is
-specifically fine-tuned for reliable tool/function calling.
+**Note:** qwen2.5:14b is the primary model — better reasoning and tool calling
+than llama3.1:8b-instruct while still running locally on modest hardware.
+Fallback: llama3.1:8b-instruct if qwen2.5:14b is not available.
 llama3.2 (3B) was found to hallucinate tool output consistently in testing.
-Fallback: qwen2.5:14b if llama3.1:8b-instruct is not available.
 
 ---
 
diff --git a/src/config.py b/src/config.py
index b4dfda7..65d65a8 100644
--- a/src/config.py
+++ b/src/config.py
@@ -15,7 +15,7 @@ class Settings(BaseSettings):
     # specifically fine-tuned for reliable tool/function calling.
     # llama3.2 (3B) hallucinated tool output consistently in testing.
     # Fallback: qwen2.5:14b if llama3.1:8b-instruct not available.
-    ollama_model: str = "llama3.1:8b-instruct"
+    ollama_model: str = "qwen2.5:14b"
 
     # Set DEBUG=true to enable /docs and /redoc (disabled by default)
     debug: bool = False
@@ -236,8 +236,8 @@ if not settings.repo_root:
 # ── Model fallback configuration ────────────────────────────────────────────
 # Primary model for reliable tool calling (llama3.1:8b-instruct)
 # Fallback if primary not available: qwen2.5:14b
-OLLAMA_MODEL_PRIMARY: str = "llama3.1:8b-instruct"
-OLLAMA_MODEL_FALLBACK: str = "qwen2.5:14b"
+OLLAMA_MODEL_PRIMARY: str = "qwen2.5:14b"
+OLLAMA_MODEL_FALLBACK: str = "llama3.1:8b-instruct"
 
 
 def check_ollama_model_available(model_name: str) -> bool:
diff --git a/tests/dashboard/test_dashboard.py b/tests/dashboard/test_dashboard.py
index c2ff1e3..ad2152c 100644
--- a/tests/dashboard/test_dashboard.py
+++ b/tests/dashboard/test_dashboard.py
@@ -86,7 +86,7 @@ def test_agents_list_metadata(client):
     response = client.get("/agents")
     agent = next(a for a in response.json()["agents"] if a["id"] == "default")
     assert agent["name"] == "Agent"
-    assert agent["model"] == "llama3.1:8b-instruct"
+    assert agent["model"] == "qwen2.5:14b"
     assert agent["type"] == "local"
 
 
diff --git a/tests/dashboard/test_mobile_scenarios.py b/tests/dashboard/test_mobile_scenarios.py
index e2606f3..b023cc1 100644
--- a/tests/dashboard/test_mobile_scenarios.py
+++ b/tests/dashboard/test_mobile_scenarios.py
@@ -298,10 +298,10 @@ def test_M605_health_status_passes_model_to_template(client):
         return_value=True,
     ):
         response = client.get("/health/status")
-    # The default model is llama3.1:8b-instruct — it should appear from settings
+    # The default model is qwen2.5:14b — it should appear from settings
     assert response.status_code == 200
     assert (
-        "llama3.1" in response.text
+        "qwen2.5" in response.text
     )  # rendered via template variable, not hardcoded literal