diff --git a/client/src/components/settings/EmbeddingsTab.jsx b/client/src/components/settings/EmbeddingsTab.jsx
index 9cb37d5b78..f03d5d9bcd 100644
--- a/client/src/components/settings/EmbeddingsTab.jsx
+++ b/client/src/components/settings/EmbeddingsTab.jsx
@@ -39,8 +39,8 @@ export default function EmbeddingsTab() {
     setModelsLoading(true);
     const status = await getLocalLlmStatus({ silent: true }).catch(() => null);
     setModels({
-      ollama: (status?.ollama?.installedModels || []).map((m) => m.id || m.name),
-      lmstudio: (status?.lmstudio?.installedModels || []).map((m) => m.id || m.name),
+      ollama: (status?.ollama?.models || []).map((m) => m.id || m.name),
+      lmstudio: (status?.lmstudio?.models || []).map((m) => m.id || m.name),
     });
     setModelsLoading(false);
   };
diff --git a/client/src/components/settings/EmbeddingsTab.test.jsx b/client/src/components/settings/EmbeddingsTab.test.jsx
new file mode 100644
index 0000000000..8a47b442ee
--- /dev/null
+++ b/client/src/components/settings/EmbeddingsTab.test.jsx
@@ -0,0 +1,38 @@
+import { describe, expect, it, vi } from 'vitest';
+import { fireEvent, render, screen, waitFor } from '@testing-library/react';
+import { MemoryRouter } from 'react-router';
+
+vi.mock('../../services/apiSystem', () => ({
+  getSettings: vi.fn().mockResolvedValue({ embeddings: { provider: 'ollama', model: '' } }),
+  updateSettings: vi.fn(),
+}));
+vi.mock('../../services/apiLocalLlm', () => ({
+  getLocalLlmStatus: vi.fn()
+    .mockResolvedValueOnce({ ollama: { models: [{ id: 'custom-embed:latest' }] }, lmstudio: { models: [] } })
+    .mockResolvedValueOnce({ ollama: { models: [] }, lmstudio: { models: [] } })
+    .mockResolvedValueOnce({ ollama: { models: [] }, lmstudio: { models: [{ id: 'example/custom-embedding' }] } }),
+}));
+vi.mock('../ui/Toast', () => ({
+  default: Object.assign(vi.fn(), { success: vi.fn(), error: vi.fn() }),
+}));
+
+import EmbeddingsTab from './EmbeddingsTab.jsx';
+
+describe('EmbeddingsTab', () => {
+  it('reads installed embedding choices from the public models field for both backends', async () => {
+    render(<MemoryRouter><EmbeddingsTab /></MemoryRouter>);
+
+    const datalist = () => document.getElementById('embeddings-model-options');
+    await waitFor(() => expect(datalist().querySelector('option[value="custom-embed:latest"]')).toBeTruthy());
+
+    fireEvent.click(screen.getByRole('button', { name: 'Refresh' }));
+    await waitFor(() => expect(datalist().querySelector('option[value="custom-embed:latest"]')).toBeFalsy());
+    expect(datalist().querySelector('option[value="nomic-embed-text"]')).toBeTruthy();
+    fireEvent.change(screen.getByLabelText('Model'), { target: { value: 'manual-embedding-model' } });
+    expect(screen.getByLabelText('Model')).toHaveValue('manual-embedding-model');
+
+    fireEvent.change(screen.getByLabelText('Provider'), { target: { value: 'lmstudio' } });
+    fireEvent.click(screen.getByRole('button', { name: 'Refresh' }));
+    await waitFor(() => expect(datalist().querySelector('option[value="example/custom-embedding"]')).toBeTruthy());
+  });
+});