diff --git a/localai/data/images/.gitkeep b/localai/data/images/.gitkeep
new file mode 100644
index 00000000..e69de29b
diff --git a/localai/data/models/.gitkeep b/localai/data/models/.gitkeep
new file mode 100644
index 00000000..e69de29b
diff --git a/localai/docker-compose.yml b/localai/docker-compose.yml
new file mode 100644
index 00000000..6d01956d
--- /dev/null
+++ b/localai/docker-compose.yml
@@ -0,0 +1,20 @@
+version: "3.7"
+
+services:
+  app_proxy:
+    environment:
+      APP_HOST: localai_api_1
+      APP_PORT: 8080
+      PROXY_AUTH_WHITELIST: "/v1/*"
+  api:
+    image: localai/localai:v2.27.0-aio-cpu@sha256:534b9ff2d2875d77cedcb7017af821af9668b7906f916e49efbd7c30b7dc37ff
+    healthcheck:
+      test: ["CMD", "curl", "-f", "http://localhost:8080/readyz"]
+      interval: 1m
+      timeout: 20m
+      retries: 5
+    environment:
+      - MODELS_PATH=/models
+    volumes:
+      - ${APP_DATA_DIR}/data/models:/models:cached
+      - ${APP_DATA_DIR}/data/images/:/tmp/generated/images/
diff --git a/localai/umbrel-app.yml b/localai/umbrel-app.yml
new file mode 100644
index 00000000..03155290
--- /dev/null
+++ b/localai/umbrel-app.yml
@@ -0,0 +1,36 @@
+manifestVersion: 1
+id: localai
+category: ai
+name: LocalAI
+version: "v2.27.0"
+tagline: Drop-in OpenAI replacement
+description: >-
+  LocalAI is the free, Open Source OpenAI alternative. LocalAI act as a drop-in replacement REST API that's compatible with OpenAI API specifications for local inferencing.
+  
+  
+  It allows you to run LLMs, generate images, audio locally with consumer grade hardware, supporting multiple model families and architectures.
+
+
+  ⚠️ Note
+
+  After installation, LocalAI takes a few minutes to start up. Please be patient and wait for the app to download required models.
+
+
+  Also, before running a model, make sure your device has enough free RAM to support it. Attempting to run a model that exceeds your available memory could cause your device to crash or become unresponsive. Always check the model requirements before downloading or starting it.
+releaseNotes: ""
+developer: Ettore Di Giacinto
+website: https://localai.io/
+dependencies: []
+repo: https://github.com/mudler/LocalAI
+support: https://github.com/mudler/LocalAI/discussions
+port: 8793
+gallery:
+  - 1.jpg
+  - 2.jpg
+  - 3.jpg
+  - 4.jpg
+path: ""
+defaultUsername: ""
+defaultPassword: ""
+submitter: highghlow
+submission: https://github.com/getumbrel/umbrel-apps/pull/1079