diff --git a/src/crewai/cli/constants.py b/src/crewai/cli/constants.py
index 13279f8d3..b93d3d2d8 100644
--- a/src/crewai/cli/constants.py
+++ b/src/crewai/cli/constants.py
@@ -85,6 +85,21 @@ ENV_VARS = {
             "key_name": "CEREBRAS_API_KEY",
         },
     ],
+    "lmstudio": [
+        {
+            "prompt": "Enter your LM Studio model name (press Enter to skip)",
+            "key_name": "MODEL",
+        },
+        {
+            "prompt": "Enter your LM Studio API base URL",
+            "key_name": "OPENAI_API_BASE",
+            "default_value": "http://localhost:1234/v1",
+        },
+        {
+            "prompt": "Enter your LM Studio API key (press Enter to skip)",
+            "key_name": "OPENAI_API_KEY",
+        },
+    ],
 }
 
 
@@ -94,6 +109,7 @@ PROVIDERS = [
     "gemini",
     "groq",
     "ollama",
+    "lmstudio",
     "watson",
     "bedrock",
     "azure",
diff --git a/src/crewai/cli/create_crew.py b/src/crewai/cli/create_crew.py
index c658b0de1..2c37ccb20 100644
--- a/src/crewai/cli/create_crew.py
+++ b/src/crewai/cli/create_crew.py
@@ -157,7 +157,12 @@ def create_crew(name, provider=None, skip_provider=False, parent_folder=None):
                     # Prompt for non-default key-value pairs
                     prompt = details["prompt"]
                     key_name = details["key_name"]
-                    api_key_value = click.prompt(prompt, default="", show_default=False)
+                    default_value = details.get("default_value", "")
+                    api_key_value = click.prompt(
+                        prompt,
+                        default=default_value,
+                        show_default=bool(default_value),
+                    )
 
                     if api_key_value.strip():
                         env_vars[key_name] = api_key_value
diff --git a/tests/cli/test_lmstudio_provider.py b/tests/cli/test_lmstudio_provider.py
new file mode 100644
index 000000000..ae6d3d1b9
--- /dev/null
+++ b/tests/cli/test_lmstudio_provider.py
@@ -0,0 +1,216 @@
+"""Tests for LMStudio provider integration in the CLI."""
+
+import shutil
+import tempfile
+from pathlib import Path
+from unittest import mock
+
+import pytest
+
+from crewai.cli.constants import ENV_VARS, PROVIDERS
+from crewai.cli.create_crew import create_crew
+
+
+class TestLMStudioConstants:
+    """Tests verifying LMStudio is properly defined in CLI constants."""
+
+    def test_lmstudio_in_providers_list(self):
+        assert "lmstudio" in PROVIDERS
+
+    def test_lmstudio_env_vars_defined(self):
+        assert "lmstudio" in ENV_VARS
+
+    def test_lmstudio_env_vars_has_model_entry(self):
+        lmstudio_vars = ENV_VARS["lmstudio"]
+        model_entry = next(
+            (d for d in lmstudio_vars if d.get("key_name") == "MODEL"), None
+        )
+        assert model_entry is not None
+        assert "prompt" in model_entry
+
+    def test_lmstudio_env_vars_has_api_base_entry(self):
+        lmstudio_vars = ENV_VARS["lmstudio"]
+        api_base_entry = next(
+            (d for d in lmstudio_vars if d.get("key_name") == "OPENAI_API_BASE"), None
+        )
+        assert api_base_entry is not None
+        assert api_base_entry["default_value"] == "http://localhost:1234/v1"
+
+    def test_lmstudio_env_vars_has_api_key_entry(self):
+        lmstudio_vars = ENV_VARS["lmstudio"]
+        api_key_entry = next(
+            (d for d in lmstudio_vars if d.get("key_name") == "OPENAI_API_KEY"), None
+        )
+        assert api_key_entry is not None
+        assert "prompt" in api_key_entry
+
+
+class TestLMStudioCreateCrew:
+    """Tests verifying the create crew flow works with LMStudio provider."""
+
+    @pytest.fixture
+    def temp_dir(self):
+        d = tempfile.mkdtemp()
+        yield Path(d)
+        shutil.rmtree(d)
+
+    @mock.patch("crewai.cli.create_crew.get_provider_data")
+    @mock.patch("crewai.cli.create_crew.select_provider")
+    @mock.patch("click.prompt")
+    @mock.patch("click.confirm", return_value=False)
+    def test_create_crew_with_lmstudio_all_values(
+        self,
+        mock_confirm,
+        mock_prompt,
+        mock_select_provider,
+        mock_get_provider_data,
+        temp_dir,
+    ):
+        """Test creating a crew with LMStudio provider setting all values."""
+        mock_get_provider_data.return_value = {"lmstudio": []}
+        mock_select_provider.return_value = "lmstudio"
+
+        # Simulate user inputs for: model name, api base url, api key
+        mock_prompt.side_effect = [
+            "my-local-model",
+            "http://localhost:1234/v1",
+            "lm-studio-key",
+        ]
+
+        create_crew("test_crew", provider="lmstudio", parent_folder=str(temp_dir))
+
+        # Check the .env file was created with correct values
+        env_file = temp_dir / "test_crew" / ".env"
+        assert env_file.exists()
+        env_content = env_file.read_text()
+        assert "MODEL=my-local-model" in env_content
+        assert "OPENAI_API_BASE=http://localhost:1234/v1" in env_content
+        assert "OPENAI_API_KEY=lm-studio-key" in env_content
+
+    @mock.patch("crewai.cli.create_crew.get_provider_data")
+    @mock.patch("crewai.cli.create_crew.select_provider")
+    @mock.patch("click.prompt")
+    @mock.patch("click.confirm", return_value=False)
+    def test_create_crew_with_lmstudio_default_base_url(
+        self,
+        mock_confirm,
+        mock_prompt,
+        mock_select_provider,
+        mock_get_provider_data,
+        temp_dir,
+    ):
+        """Test creating a crew with LMStudio using default base URL."""
+        mock_get_provider_data.return_value = {"lmstudio": []}
+        mock_select_provider.return_value = "lmstudio"
+
+        # User provides model, accepts default URL, skips API key
+        mock_prompt.side_effect = ["my-local-model", "http://localhost:1234/v1", ""]
+
+        create_crew("test_crew", provider="lmstudio", parent_folder=str(temp_dir))
+
+        env_file = temp_dir / "test_crew" / ".env"
+        assert env_file.exists()
+        env_content = env_file.read_text()
+        assert "MODEL=my-local-model" in env_content
+        assert "OPENAI_API_BASE=http://localhost:1234/v1" in env_content
+        # API key should not be present when skipped
+        assert "OPENAI_API_KEY" not in env_content
+
+    @mock.patch("crewai.cli.create_crew.get_provider_data")
+    @mock.patch("crewai.cli.create_crew.select_provider")
+    @mock.patch("click.prompt")
+    @mock.patch("click.confirm", return_value=False)
+    def test_create_crew_with_lmstudio_custom_base_url(
+        self,
+        mock_confirm,
+        mock_prompt,
+        mock_select_provider,
+        mock_get_provider_data,
+        temp_dir,
+    ):
+        """Test creating a crew with LMStudio using a custom base URL."""
+        mock_get_provider_data.return_value = {"lmstudio": []}
+        mock_select_provider.return_value = "lmstudio"
+
+        # User provides model, custom URL, and API key
+        mock_prompt.side_effect = [
+            "my-local-model",
+            "http://192.168.1.100:1234/v1",
+            "my-key",
+        ]
+
+        create_crew("test_crew", provider="lmstudio", parent_folder=str(temp_dir))
+
+        env_file = temp_dir / "test_crew" / ".env"
+        assert env_file.exists()
+        env_content = env_file.read_text()
+        assert "MODEL=my-local-model" in env_content
+        assert "OPENAI_API_BASE=http://192.168.1.100:1234/v1" in env_content
+        assert "OPENAI_API_KEY=my-key" in env_content
+
+    @mock.patch("crewai.cli.create_crew.get_provider_data")
+    @mock.patch("crewai.cli.create_crew.select_provider")
+    @mock.patch("click.prompt")
+    @mock.patch("click.confirm", return_value=False)
+    def test_create_crew_with_lmstudio_no_model(
+        self,
+        mock_confirm,
+        mock_prompt,
+        mock_select_provider,
+        mock_get_provider_data,
+        temp_dir,
+    ):
+        """Test creating a crew with LMStudio when user skips model name."""
+        mock_get_provider_data.return_value = {"lmstudio": []}
+        mock_select_provider.return_value = "lmstudio"
+
+        # User skips model, accepts default URL, skips API key
+        mock_prompt.side_effect = ["", "http://localhost:1234/v1", ""]
+
+        create_crew("test_crew", provider="lmstudio", parent_folder=str(temp_dir))
+
+        env_file = temp_dir / "test_crew" / ".env"
+        assert env_file.exists()
+        env_content = env_file.read_text()
+        # MODEL should not be present when skipped
+        assert "MODEL=" not in env_content
+        assert "OPENAI_API_BASE=http://localhost:1234/v1" in env_content
+
+
+class TestDefaultValueInPrompt:
+    """Tests verifying the default_value mechanism in env var prompts."""
+
+    @pytest.fixture
+    def temp_dir(self):
+        d = tempfile.mkdtemp()
+        yield Path(d)
+        shutil.rmtree(d)
+
+    @mock.patch("crewai.cli.create_crew.get_provider_data")
+    @mock.patch("crewai.cli.create_crew.select_provider")
+    @mock.patch("click.prompt")
+    @mock.patch("click.confirm", return_value=False)
+    def test_default_value_is_used_when_user_accepts(
+        self,
+        mock_confirm,
+        mock_prompt,
+        mock_select_provider,
+        mock_get_provider_data,
+        temp_dir,
+    ):
+        """Test that default_value is written to .env when user accepts it."""
+        mock_get_provider_data.return_value = {"lmstudio": []}
+        mock_select_provider.return_value = "lmstudio"
+
+        # User enters model, accepts default base URL, enters API key
+        mock_prompt.side_effect = [
+            "test-model",
+            "http://localhost:1234/v1",
+            "test-key",
+        ]
+
+        create_crew("test_crew", provider="lmstudio", parent_folder=str(temp_dir))
+
+        env_file = temp_dir / "test_crew" / ".env"
+        env_content = env_file.read_text()
+        assert "OPENAI_API_BASE=http://localhost:1234/v1" in env_content