diff --git a/.gitignore b/.gitignore
index da36ba0..572b1c3 100644
--- a/.gitignore
+++ b/.gitignore
@@ -41,3 +41,4 @@ CLAUDE.md
 dev.env
 backend/vessel-backend
 data/
+backend/data-dev/
diff --git a/frontend/src/lib/stores/local-models.svelte.ts b/frontend/src/lib/stores/local-models.svelte.ts
index b4066b3..298f0cd 100644
--- a/frontend/src/lib/stores/local-models.svelte.ts
+++ b/frontend/src/lib/stores/local-models.svelte.ts
@@ -146,7 +146,8 @@ class LocalModelsState {
 			const response = await checkForUpdates();
 
 			this.updatesAvailable = response.updatesAvailable;
-			this.modelsWithUpdates = new Set(response.updates.map(m => m.name));
+			// Handle null/undefined updates array from API
+			this.modelsWithUpdates = new Set((response.updates ?? []).map(m => m.name));
 
 			return response;
 		} catch (err) {
diff --git a/frontend/src/routes/models/+page.svelte b/frontend/src/routes/models/+page.svelte
index 0b72de0..cb3ccd1 100644
--- a/frontend/src/routes/models/+page.svelte
+++ b/frontend/src/routes/models/+page.svelte
@@ -236,7 +236,10 @@
 		// Initialize stores (backend handles heavy operations)
 		localModelsState.init();
 		modelRegistry.init();
-		modelsState.refresh();
+		modelsState.refresh().then(() => {
+			// Fetch capabilities for all installed models
+			modelsState.fetchAllCapabilities();
+		});
 	});
 </script>
 
@@ -493,6 +496,7 @@
 				{:else}
 					<div class="space-y-2">
 						{#each localModelsState.models as model (model.name)}
+							{@const caps = modelsState.getCapabilities(model.name) ?? []}
 							<div class="group rounded-lg border border-theme bg-theme-secondary p-4 transition-colors hover:border-theme-subtle">
 								<div class="flex items-center justify-between">
 									<div class="flex-1">
@@ -513,6 +517,36 @@
 											<span>Parameters: {model.parameterSize}</span>
 											<span>Quantization: {model.quantizationLevel}</span>
 										</div>
+										<!-- Capabilities (from Ollama runtime - verified) -->
+										{#if caps.length > 0}
+											<div class="mt-2 flex flex-wrap gap-1.5">
+												{#if caps.includes('vision')}
+													<span class="inline-flex items-center gap-1 rounded px-1.5 py-0.5 text-xs bg-purple-900/50 text-purple-300">
+														<span>👁</span><span>Vision</span>
+													</span>
+												{/if}
+												{#if caps.includes('tools')}
+													<span class="inline-flex items-center gap-1 rounded px-1.5 py-0.5 text-xs bg-blue-900/50 text-blue-300">
+														<span>🔧</span><span>Tools</span>
+													</span>
+												{/if}
+												{#if caps.includes('thinking')}
+													<span class="inline-flex items-center gap-1 rounded px-1.5 py-0.5 text-xs bg-pink-900/50 text-pink-300">
+														<span>🧠</span><span>Thinking</span>
+													</span>
+												{/if}
+												{#if caps.includes('embedding')}
+													<span class="inline-flex items-center gap-1 rounded px-1.5 py-0.5 text-xs bg-amber-900/50 text-amber-300">
+														<span>📊</span><span>Embedding</span>
+													</span>
+												{/if}
+												{#if caps.includes('code')}
+													<span class="inline-flex items-center gap-1 rounded px-1.5 py-0.5 text-xs bg-emerald-900/50 text-emerald-300">
+														<span>💻</span><span>Code</span>
+													</span>
+												{/if}
+											</div>
+										{/if}
 									</div>
 									<div class="flex items-center gap-2">
 										{#if deleteConfirm === model.name}