diff --git a/cli/src/__tests__/local-cloud-provider-patterns.test.ts b/cli/src/__tests__/local-cloud-provider-patterns.test.ts
new file mode 100644
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--- /dev/null
+++ b/cli/src/__tests__/local-cloud-provider-patterns.test.ts
@@ -0,0 +1,395 @@
+import { describe, it, expect } from "bun:test";
+import { readFileSync, existsSync } from "fs";
+import { join, resolve } from "path";
+import type { Manifest } from "../manifest";
+
+/**
+ * Local cloud provider pattern tests.
+ *
+ * The "local" cloud is architecturally different from all SSH-based and
+ * sandbox-based clouds: it runs agents directly on the user's machine
+ * with no server provisioning. These tests validate:
+ *
+ * 1. local/lib/common.sh defines the correct no-op / local-execution API
+ * 2. Local agent scripts use inject_env_vars_local (not SSH-based inject_env_vars)
+ * 3. No SSH/SCP patterns leak into local scripts
+ * 4. Every local script has ensure_local_ready
+ * 5. OpenRouter API key handling is consistent across all local scripts
+ * 6. SPAWN_PROMPT handling patterns are correct
+ * 7. Installation verification patterns (command -v checks)
+ *
+ * Agent: test-engineer
+ */
+
+const REPO_ROOT = resolve(import.meta.dir, "../../..");
+const manifestPath = join(REPO_ROOT, "manifest.json");
+const manifest: Manifest = JSON.parse(readFileSync(manifestPath, "utf-8"));
+
+// Collect all implemented local/* matrix entries
+const localEntries = Object.entries(manifest.matrix)
+  .filter(([key, status]) => key.startsWith("local/") && status === "implemented")
+  .map(([key]) => {
+    const agent = key.split("/")[1];
+    return { key, agent, path: join(REPO_ROOT, key + ".sh") };
+  })
+  .filter(({ path }) => existsSync(path));
+
+const libPath = join(REPO_ROOT, "local", "lib", "common.sh");
+const libContent = existsSync(libPath) ? readFileSync(libPath, "utf-8") : "";
+
+/** Read a local script */
+function readScript(filePath: string): string {
+  return readFileSync(filePath, "utf-8");
+}
+
+/** Get non-comment, non-empty lines */
+function getCodeLines(content: string): string[] {
+  return content
+    .split("\n")
+    .filter((line) => line.trim() !== "" && !line.trimStart().startsWith("#"));
+}
+
+/** Extract function definitions from shell content */
+function extractFunctions(content: string): string[] {
+  const matches = content.match(/^[a-z_][a-z0-9_]*\(\)/gm);
+  return matches ? matches.map((m) => m.replace("()", "")) : [];
+}
+
+// ==============================================================
+// local/lib/common.sh — API surface
+// ==============================================================
+
+describe("local/lib/common.sh API surface", () => {
+  it("should exist", () => {
+    expect(existsSync(libPath)).toBe(true);
+  });
+
+  it("should source shared/common.sh", () => {
+    expect(libContent).toContain("shared/common.sh");
+  });
+
+  it("should have remote fallback for shared/common.sh", () => {
+    expect(libContent).toContain("raw.githubusercontent.com");
+    expect(libContent).toContain("curl");
+  });
+
+  const requiredFunctions = [
+    "ensure_local_ready",
+    "get_server_name",
+    "create_server",
+    "wait_for_cloud_init",
+    "run_server",
+    "upload_file",
+    "interactive_session",
+    "destroy_server",
+    "list_servers",
+  ];
+
+  const definedFunctions = extractFunctions(libContent);
+
+  for (const fn of requiredFunctions) {
+    it(`should define ${fn}()`, () => {
+      expect(definedFunctions).toContain(fn);
+    });
+  }
+
+  it("should NOT define any SSH-related functions", () => {
+    const sshFunctions = definedFunctions.filter(
+      (fn) => fn.includes("ssh") || fn.includes("scp") || fn.includes("sftp")
+    );
+    expect(sshFunctions).toEqual([]);
+  });
+
+  it("run_server should use bash -c (local execution, not SSH)", () => {
+    expect(libContent).toMatch(/run_server\(\)\s*\{[\s\S]*?bash\s+-c/);
+  });
+
+  it("upload_file should use cp (local copy, not SCP/SFTP)", () => {
+    expect(libContent).toMatch(/upload_file\(\)\s*\{[\s\S]*?\bcp\b/);
+  });
+
+  it("destroy_server should be a no-op (never destroy the user's machine)", () => {
+    // The function body should not contain dangerous commands
+    const destroyMatch = libContent.match(
+      /destroy_server\(\)\s*\{([\s\S]*?)^\}/m
+    );
+    if (destroyMatch) {
+      const body = destroyMatch[1];
+      expect(body).not.toContain("rm -rf");
+      expect(body).not.toContain("shutdown");
+      expect(body).not.toContain("reboot");
+      expect(body).not.toContain("poweroff");
+    }
+  });
+
+  it("should use set -eo pipefail", () => {
+    expect(libContent).toContain("set -eo pipefail");
+  });
+
+  it("should have #!/bin/bash shebang", () => {
+    expect(libContent.trimStart()).toMatch(/^#!\/bin\/bash/);
+  });
+
+  it("ensure_local_ready should check for curl", () => {
+    expect(libContent).toContain("command -v curl");
+  });
+});
+
+// ==============================================================
+// local agent scripts — shared patterns
+// ==============================================================
+
+describe("local agent scripts — shared patterns", () => {
+  it("should have multiple implemented local agent scripts", () => {
+    expect(localEntries.length).toBeGreaterThanOrEqual(10);
+  });
+
+  describe("sources local/lib/common.sh", () => {
+    for (const { key, path } of localEntries) {
+      it(`${key}.sh should source local/lib/common.sh`, () => {
+        const content = readScript(path);
+        expect(content).toContain("lib/common.sh");
+      });
+    }
+  });
+
+  describe("calls ensure_local_ready", () => {
+    for (const { key, path } of localEntries) {
+      it(`${key}.sh should call ensure_local_ready`, () => {
+        const content = readScript(path);
+        expect(content).toContain("ensure_local_ready");
+      });
+    }
+  });
+
+  describe("OpenRouter API key handling", () => {
+    for (const { key, path } of localEntries) {
+      it(`${key}.sh should check for OPENROUTER_API_KEY env var`, () => {
+        const content = readScript(path);
+        expect(content).toContain("OPENROUTER_API_KEY");
+      });
+
+      it(`${key}.sh should use safe env var check with :- default`, () => {
+        const content = readScript(path);
+        expect(content).toMatch(/OPENROUTER_API_KEY:-/);
+      });
+
+      it(`${key}.sh should fall back to OAuth if key not set`, () => {
+        const content = readScript(path);
+        expect(content).toContain("get_openrouter_api_key_oauth");
+      });
+    }
+  });
+
+  describe("uses inject_env_vars_local (not SSH-based inject_env_vars)", () => {
+    for (const { key, path } of localEntries) {
+      it(`${key}.sh should use inject_env_vars_local or manual env injection`, () => {
+        const content = readScript(path);
+        const codeLines = getCodeLines(content);
+        const codeStr = codeLines.join("\n");
+        // Should use inject_env_vars_local OR manual env var setup (some scripts do it inline)
+        const usesLocalInject = codeStr.includes("inject_env_vars_local");
+        const usesManualExport = codeStr.includes("export OPENROUTER_API_KEY");
+        const usesShellConfig = codeStr.includes("SHELL_CONFIG");
+        expect(usesLocalInject || usesManualExport || usesShellConfig).toBe(
+          true
+        );
+      });
+    }
+  });
+
+  describe("no SSH patterns in local scripts", () => {
+    for (const { key, path } of localEntries) {
+      it(`${key}.sh should not contain SSH connection commands`, () => {
+        const content = readScript(path);
+        const codeLines = getCodeLines(content);
+        for (const line of codeLines) {
+          // Should not contain direct ssh commands (but ssh in URLs/comments is OK)
+          expect(line).not.toMatch(/\bssh\s+-[A-Za-z]/);
+          expect(line).not.toMatch(/\bscp\s+/);
+        }
+      });
+
+      it(`${key}.sh should not reference SERVER_IP`, () => {
+        const content = readScript(path);
+        const codeLines = getCodeLines(content);
+        const codeStr = codeLines.join("\n");
+        expect(codeStr).not.toContain("SERVER_IP");
+      });
+
+      it(`${key}.sh should not call wait_for_ssh`, () => {
+        const content = readScript(path);
+        expect(content).not.toMatch(/\bwait_for_ssh\b/);
+      });
+
+      it(`${key}.sh should not call generic_ssh_wait`, () => {
+        const content = readScript(path);
+        expect(content).not.toMatch(/\bgeneric_ssh_wait\b/);
+      });
+    }
+  });
+});
+
+// ==============================================================
+// Installation verification patterns
+// ==============================================================
+
+describe("local agent scripts — installation verification", () => {
+  // Scripts that install a CLI tool should verify the installation succeeded
+  // using command -v checks
+  for (const { key, path, agent } of localEntries) {
+    it(`${key}.sh should verify installation with command -v`, () => {
+      const content = readScript(path);
+      // All local scripts install something and should verify it
+      const hasCommandCheck = content.includes("command -v");
+      expect(hasCommandCheck).toBe(true);
+    });
+  }
+
+  for (const { key, path } of localEntries) {
+    it(`${key}.sh should have an installation failure message`, () => {
+      const content = readScript(path);
+      // Should have log_error for installation failures
+      const hasInstallError =
+        content.includes("installation failed") ||
+        content.includes("not available") ||
+        content.includes("not installed") ||
+        content.includes("is required");
+      expect(hasInstallError).toBe(true);
+    });
+  }
+});
+
+// ==============================================================
+// SPAWN_PROMPT handling
+// ==============================================================
+
+describe("local agent scripts — SPAWN_PROMPT handling", () => {
+  for (const { key, path } of localEntries) {
+    const content = readScript(path);
+
+    // Most scripts handle SPAWN_PROMPT, but not all
+    if (content.includes("SPAWN_PROMPT")) {
+      it(`${key}.sh should use safe SPAWN_PROMPT check with :- default`, () => {
+        expect(content).toMatch(/SPAWN_PROMPT:-/);
+      });
+
+      it(`${key}.sh should handle both interactive and non-interactive modes`, () => {
+        // If it checks SPAWN_PROMPT, it should have both branches
+        const hasInteractive =
+          content.includes("exec ") || content.includes("interactive_session");
+        const hasNonInteractive =
+          content.includes("-p ") ||
+          content.includes("-m ") ||
+          content.includes("tell ");
+        // At minimum it should do something in the SPAWN_PROMPT branch
+        expect(hasInteractive || hasNonInteractive).toBe(true);
+      });
+    }
+  }
+});
+
+// ==============================================================
+// Shell config persistence
+// ==============================================================
+
+describe("local agent scripts — shell config persistence", () => {
+  for (const { key, path } of localEntries) {
+    it(`${key}.sh should source shell config before launching agent`, () => {
+      const content = readScript(path);
+      // Should source .zshrc/.bashrc before running the agent
+      const sourcesConfig =
+        content.includes("source ~/.zshrc") ||
+        content.includes("source ~/.bashrc") ||
+        content.includes("source ${SHELL_CONFIG}") ||
+        content.includes("source \"${SHELL_CONFIG}\"");
+      // inject_env_vars_local handles this internally for most scripts
+      const usesLocalInject = content.includes("inject_env_vars_local");
+      // Some scripts export vars directly in the current session instead
+      const exportsDirectly = content.includes("export OPENROUTER_API_KEY=");
+      expect(sourcesConfig || usesLocalInject || exportsDirectly).toBe(true);
+    });
+  }
+});
+
+// ==============================================================
+// Security: no dangerous local operations
+// ==============================================================
+
+describe("local agent scripts — safety checks", () => {
+  for (const { key, path } of localEntries) {
+    it(`${key}.sh should not use rm -rf on system directories`, () => {
+      const content = readScript(path);
+      const codeLines = getCodeLines(content);
+      for (const line of codeLines) {
+        if (line.includes("rm -rf")) {
+          // Should only rm -rf temp files or specific app dirs, not system dirs
+          expect(line).not.toMatch(/rm\s+-rf\s+[/~]\s/);
+          expect(line).not.toMatch(/rm\s+-rf\s+\/$/);
+        }
+      }
+    });
+
+    it(`${key}.sh should not use sudo`, () => {
+      const content = readScript(path);
+      const codeLines = getCodeLines(content);
+      for (const line of codeLines) {
+        expect(line).not.toMatch(/\bsudo\b/);
+      }
+    });
+  }
+});
+
+// ==============================================================
+// Manifest consistency
+// ==============================================================
+
+describe("local cloud manifest consistency", () => {
+  it("manifest should have local cloud entry", () => {
+    expect(manifest.clouds["local"]).toBeDefined();
+  });
+
+  it("local cloud type should be 'local'", () => {
+    expect(manifest.clouds["local"].type).toBe("local");
+  });
+
+  it("local cloud auth should be 'none'", () => {
+    expect(manifest.clouds["local"].auth).toBe("none");
+  });
+
+  it("local cloud exec_method should be 'bash -c'", () => {
+    expect(manifest.clouds["local"].exec_method).toBe("bash -c");
+  });
+
+  it("most implemented local/* entries should have a corresponding script file", () => {
+    const implemented = Object.entries(manifest.matrix)
+      .filter(([key, status]) => key.startsWith("local/") && status === "implemented");
+
+    const missing: string[] = [];
+    for (const [key] of implemented) {
+      const scriptPath = join(REPO_ROOT, key + ".sh");
+      if (!existsSync(scriptPath)) {
+        missing.push(key + ".sh");
+      }
+    }
+
+    // Allow at most 1 missing file (manifest may be ahead of implementation)
+    if (missing.length > 1) {
+      throw new Error(
+        `${missing.length} implemented local entries have no script file:\n` +
+          missing.map((f) => `  - ${f}`).join("\n")
+      );
+    }
+    if (missing.length > 0) {
+      console.log(
+        `Note: ${missing.length} local entry marked implemented but missing file: ${missing.join(", ")}`
+      );
+    }
+  });
+
+  it("local should have no credentials required (auth: none)", () => {
+    const cloud = manifest.clouds["local"];
+    expect(cloud.auth).toBe("none");
+    expect(cloud.provision_method).toContain("none");
+  });
+});