diff --git a/shell/agents/AIShell.Ollama.Agent/OllamaAgent.cs b/shell/agents/AIShell.Ollama.Agent/OllamaAgent.cs
index 36aa6140..d3a4dcba 100644
--- a/shell/agents/AIShell.Ollama.Agent/OllamaAgent.cs
+++ b/shell/agents/AIShell.Ollama.Agent/OllamaAgent.cs
@@ -1,10 +1,28 @@
 using System.Diagnostics;
+using System.Text;
+using System.Text.Json;
 using AIShell.Abstraction;
 
 namespace AIShell.Ollama.Agent;
 
 public sealed class OllamaAgent : ILLMAgent
 {
+    private bool _reloadSettings;
+    private bool _isDisposed;
+    private string _configRoot;
+    private Settings _settings;
+    private FileSystemWatcher _watcher;
+
+    /// <summary>
+    /// The name of setting file
+    /// </summary>
+    private const string SettingFileName = "ollama.config.json";
+
+    /// <summary>
+    /// Gets the settings.
+    /// </summary>
+    internal Settings Settings => _settings;
+
     /// <summary>
     /// The name of the agent
     /// </summary>
@@ -13,7 +31,7 @@ public sealed class OllamaAgent : ILLMAgent
     /// <summary>
     /// The description of the agent to be shown at start up
     /// </summary>
-    public string Description => "This is an AI assistant to interact with a language model running locally by utilizing the Ollama CLI tool. Be sure to follow all prerequisites in aka.ms/aish/ollama";
+    public string Description => "This is an AI assistant to interact with a language model running locally by utilizing the Ollama CLI tool. Be sure to follow all prerequisites in https://github.com/PowerShell/AIShell/tree/main/shell/agents/AIShell.Ollama.Agent";
 
     /// <summary>
     /// This is the company added to /like and /dislike verbiage for who the telemetry helps.
@@ -42,7 +60,15 @@ public sealed class OllamaAgent : ILLMAgent
     /// </summary>
     public void Dispose()
     {
+        if (_isDisposed)
+        {
+            return;
+        }
+
+        GC.SuppressFinalize(this);
         _chatService?.Dispose();
+        _watcher.Dispose();
+        _isDisposed = true;
     }
 
     /// <summary>
@@ -51,12 +77,31 @@ public void Dispose()
     /// <param name="config">Agent configuration for any configuration file and other settings</param>
     public void Initialize(AgentConfig config)
     {
-        _chatService = new OllamaChatService();
+        _configRoot = config.ConfigurationRoot;
+
+        SettingFile = Path.Combine(_configRoot, SettingFileName);
+        _settings = ReadSettings();
+
+        if (_settings is null)
+        {
+            // Create the setting file with examples to serve as a template for user to update.
+            NewExampleSettingFile();
+            _settings = ReadSettings();
+        }
+
+        _chatService = new OllamaChatService(_settings);
+
+        _watcher = new FileSystemWatcher(_configRoot, SettingFileName)
+        {
+            NotifyFilter = NotifyFilters.LastWrite,
+            EnableRaisingEvents = true,
+        };
+        _watcher.Changed += OnSettingFileChange;
 
         LegalLinks = new(StringComparer.OrdinalIgnoreCase)
         {
             ["Ollama Docs"] = "https://github.com/ollama/ollama",
-            ["Prerequisites"] = "https://aka.ms/ollama/readme"
+            ["Prerequisites"] = "https://github.com/PowerShell/AIShell/tree/main/shell/agents/AIShell.Ollama.Agent"
         };
     }
 
@@ -68,7 +113,7 @@ public void Initialize(AgentConfig config)
     /// <summary>
     /// Gets the path to the setting file of the agent.
     /// </summary>
-    public string SettingFile { private set; get; } = null;
+    public string SettingFile { private set; get; }
 
     /// <summary>
     /// Gets a value indicating whether the agent accepts a specific user action feedback.
@@ -87,7 +132,16 @@ public void OnUserAction(UserActionPayload actionPayload) {}
     /// Refresh the current chat by starting a new chat session.
     /// This method allows an agent to reset chat states, interact with user for authentication, print welcome message, and more.
     /// </summary>
-    public Task RefreshChatAsync(IShell shell, bool force) => Task.CompletedTask;
+    public Task RefreshChatAsync(IShell shell, bool force)
+    {
+        if (force)
+        {
+            // Reload the setting file if needed.
+            ReloadSettings();
+        }
+
+        return Task.CompletedTask;
+    }
 
     /// <summary>
     /// Main chat function that takes the users input and passes it to the LLM and renders it.
@@ -103,23 +157,126 @@ public async Task<bool> ChatAsync(string input, IShell shell)
         // get the cancellation token
         CancellationToken token = shell.CancellationToken;
 
+        // Reload the setting file if needed.
+        ReloadSettings();
+
         if (Process.GetProcessesByName("ollama").Length is 0)
         {
-            host.RenderFullResponse("Please be sure the Ollama is installed and server is running. Check all the prerequisites in the README of this agent are met.");
+            host.MarkupWarningLine($"[[{Name}]]: Please be sure the Ollama is installed and server is running. Check all the prerequisites in the README of this agent are met.");
+            return false;
+        }
+
+        if (!SelfCheck(host))
+        {
+            return false;
+        }
+
+        try
+        {
+            ResponseData ollamaResponse = await host.RunWithSpinnerAsync(
+                status: "Thinking ...",
+                func: async context => await _chatService.GetChatResponseAsync(context, input, token)
+            ).ConfigureAwait(false);
+
+            if (ollamaResponse is not null)
+            {
+                // render the content
+                host.RenderFullResponse(ollamaResponse.response);
+            }
+        }
+        catch (HttpRequestException)
+        {
+            host.WriteErrorLine($"[{Name}]: Cannot serve the query due to the Endpoint or Model misconfiguration. Please properly update the setting file.");
             return false;
         }
 
-        ResponseData ollamaResponse = await host.RunWithSpinnerAsync(
-            status: "Thinking ...",
-            func: async context => await _chatService.GetChatResponseAsync(context, input, token)
-        ).ConfigureAwait(false);
+        return true;
+    }
 
-        if (ollamaResponse is not null)
+    internal void ReloadSettings()
+    {
+        if (_reloadSettings)
         {
-            // render the content
-            host.RenderFullResponse(ollamaResponse.response);
+            _reloadSettings = false;
+            var settings = ReadSettings();
+            if (settings is null)
+            {
+                return;
+            }
+
+            _settings = settings;
+            _chatService.RefreshSettings(_settings);
         }
-        
+    }
+
+    private Settings ReadSettings()
+    {
+        Settings settings = null;
+        FileInfo file = new(SettingFile);
+
+        if (file.Exists)
+        {
+            try
+            {
+                using var stream = file.OpenRead();
+                var data = JsonSerializer.Deserialize(stream, SourceGenerationContext.Default.ConfigData);
+                settings = new Settings(data);
+            }
+            catch (Exception e)
+            {
+                throw new InvalidDataException($"Parsing settings from '{SettingFile}' failed with the following error: {e.Message}", e);
+            }
+        }
+
+        return settings;
+    }
+
+    private void OnSettingFileChange(object sender, FileSystemEventArgs e)
+    {
+        if (e.ChangeType is WatcherChangeTypes.Changed)
+        {
+            _reloadSettings = true;
+        }
+    }
+
+    internal bool SelfCheck(IHost host)
+    {
+        var settings = new (string settingValue, string settingName)[]
+        {
+            (_settings?.Model, "Model"),
+            (_settings?.Endpoint, "Endpoint")
+        };
+
+        foreach (var (settingValue, settingName) in settings)
+        {
+            if (string.IsNullOrWhiteSpace(settingValue))
+            {
+                host.WriteErrorLine($"[{Name}]: {settingName} is undefined. Please declare it in the setting file.");
+                return false;
+            }
+        }
+
         return true;
     }
+
+    private void NewExampleSettingFile()
+    {
+        string SampleContent = $$"""
+        {
+            // To use Ollama API service:
+            // 1. Install Ollama:
+            //      winget install Ollama.Ollama
+            // 2. Start Ollama API server:
+            //      ollama serve
+            // 3. Install Ollama model:
+            //      ollama pull phi3
+
+            // Declare Ollama model
+            "Model": "phi3",
+            // Declare Ollama endpoint
+            "Endpoint": "http://localhost:11434"
+        }
+        """;
+        File.WriteAllText(SettingFile, SampleContent, Encoding.UTF8);
+    }
 }
diff --git a/shell/agents/AIShell.Ollama.Agent/OllamaChatService.cs b/shell/agents/AIShell.Ollama.Agent/OllamaChatService.cs
index 8809eff3..746e5e4d 100644
--- a/shell/agents/AIShell.Ollama.Agent/OllamaChatService.cs
+++ b/shell/agents/AIShell.Ollama.Agent/OllamaChatService.cs
@@ -7,11 +7,7 @@ namespace AIShell.Ollama.Agent;
 
 internal class OllamaChatService : IDisposable
 {
-    /// <summary>
-    /// Ollama endpoint to call to generate a response
-    /// </summary>
-    internal const string Endpoint = "http://localhost:11434/api/generate";
-
+    private Settings _settings;
     /// <summary>
     /// Http client 
     /// </summary>
@@ -20,11 +16,21 @@ internal class OllamaChatService : IDisposable
     /// <summary>
     /// Initialization method to initialize the http client 
     /// </summary>
-    internal OllamaChatService()
+    internal OllamaChatService(Settings settings)
     {
+        _settings = settings;
         _client = new HttpClient();
     }
 
+    /// <summary>
+    /// Refresh settings
+    /// </summary>
+    /// <param name="settings"></param>
+    internal void RefreshSettings(Settings settings)
+    {
+        _settings = settings;
+    }
+
     /// <summary>
     /// Dispose of the http client 
     /// </summary>
@@ -43,7 +49,7 @@ private HttpRequestMessage PrepareForChat(string input)
         // Main data to send to the endpoint
         var requestData = new Query
         {
-            model = "phi3",
+            model = _settings.Model,
             prompt = input,
             stream = false
         };
@@ -51,7 +57,7 @@ private HttpRequestMessage PrepareForChat(string input)
         var json = JsonSerializer.Serialize(requestData);
 
         var data = new StringContent(json, Encoding.UTF8, "application/json");
-        var request = new HttpRequestMessage(HttpMethod.Post, Endpoint) { Content = data };
+        var request = new HttpRequestMessage(HttpMethod.Post, $"{_settings.Endpoint}/api/generate") { Content = data };
 
         return request;
     }
diff --git a/shell/agents/AIShell.Ollama.Agent/README.md b/shell/agents/AIShell.Ollama.Agent/README.md
index 559d504a..87375aec 100644
--- a/shell/agents/AIShell.Ollama.Agent/README.md
+++ b/shell/agents/AIShell.Ollama.Agent/README.md
@@ -5,18 +5,30 @@ this agent you need to have Ollama installed and running.
 
 ## Pre-requisites to using the agent
 
-- Install [Ollama](https://github.com/ollama/ollama) 
-- Install a [Ollama model](https://github.com/ollama/ollama?tab=readme-ov-file#model-library), we
-  suggest using the `phi3` model as it is set as the default model in the code
+- Install [Ollama](https://github.com/ollama/ollama)
+- Install a [Ollama model](https://github.com/ollama/ollama?tab=readme-ov-file#model-library), we suggest using the `phi3` model as it is set as the default model in the code
 - [Start the Ollama API server](https://github.com/ollama/ollama?tab=readme-ov-file#start-ollama)
 
 ## Configuration
 
-Currently to change the model you will need to modify the query in the code in the
-`OllamaChatService` class. The default model is `phi3`.
-
-The default endpoint is `http://localhost:11434/api/generate` with `11434` being the default port. This can be changed in the code
-and eventually will be added to a configuration file.
+To configure the agent, run `/agent config ollama` to open up the setting file in your default editor, and then update the file based on the following example.
+
+```json
+{
+	// To use Ollama API service:
+	// 1. Install Ollama:
+	//      winget install Ollama.Ollama
+	// 2. Start Ollama API server:
+	//      ollama serve
+	// 3. Install Ollama model:
+	//      ollama pull phi3
+
+	// Declare Ollama model
+	"Model": "phi3",
+	// Declare Ollama endpoint
+	"Endpoint": "http://localhost:11434"
+}
+```
 
 ## Known Limitations
 
@@ -24,5 +36,3 @@ and eventually will be added to a configuration file.
   queries
 - Streaming is currently not supported if you change the stream value to `true` in the data to send
   to the API it will not work
-- Configuration is currently hard coded in the code and will be moved to a configuration file in the
-  future
\ No newline at end of file
diff --git a/shell/agents/AIShell.Ollama.Agent/Settings.cs b/shell/agents/AIShell.Ollama.Agent/Settings.cs
new file mode 100644
index 00000000..ad7dccef
--- /dev/null
+++ b/shell/agents/AIShell.Ollama.Agent/Settings.cs
@@ -0,0 +1,38 @@
+using System.Text.Json;
+using System.Text.Json.Serialization;
+
+namespace AIShell.Ollama.Agent;
+
+internal class Settings
+{
+    private string _model;
+    private string _endpoint;
+
+    public string Model => _model;
+    public string Endpoint => _endpoint;
+
+    public Settings(ConfigData configData)
+    {
+        _model = configData?.Model;
+        _endpoint = configData?.Endpoint?.TrimEnd('/');
+    }
+}
+
+internal class ConfigData
+{
+    public string Model { get; set; }
+    public string Endpoint { get; set; }
+}
+
+/// <summary>
+/// Use source generation to serialize and deserialize the setting file.
+/// Both metadata-based and serialization-optimization modes are used to gain the best performance.
+/// </summary>
+[JsonSourceGenerationOptions(
+    WriteIndented = true,
+    AllowTrailingCommas = true,
+    PropertyNameCaseInsensitive = true,
+    ReadCommentHandling = JsonCommentHandling.Skip,
+    UseStringEnumConverter = true)]
+[JsonSerializable(typeof(ConfigData))]
+internal partial class SourceGenerationContext : JsonSerializerContext { }