diff --git a/src/crewai/memory/storage/mem0_storage.py b/src/crewai/memory/storage/mem0_storage.py
index ccf8cc810..835788727 100644
--- a/src/crewai/memory/storage/mem0_storage.py
+++ b/src/crewai/memory/storage/mem0_storage.py
@@ -48,7 +48,7 @@ class Mem0Storage(Storage):
                 self.memory = MemoryClient(api_key=mem0_api_key)
         else:
             if mem0_local_config and len(mem0_local_config):
-                self.memory = Memory.from_config(config)
+                self.memory = Memory.from_config(mem0_local_config)
             else:
                 self.memory = Memory()
 
diff --git a/tests/storage/test_mem0_storage.py b/tests/storage/test_mem0_storage.py
index f9e56739f..fec115741 100644
--- a/tests/storage/test_mem0_storage.py
+++ b/tests/storage/test_mem0_storage.py
@@ -153,3 +153,31 @@ def test_mem0_storage_with_explict_config(
         mem0_storage_with_memory_client_using_explictly_config.memory_config
         == expected_config
     )
+
+@pytest.fixture
+def mem0_storage_with_local_config(mock_mem0_memory):
+    """Fixture to create a Mem0Storage instance with local mem0 config"""
+
+    # Patch the Memory class to return our mock
+    with patch("mem0.memory.main.Memory.from_config", return_value=mock_mem0_memory) as mock_from_config:
+        local_config = {
+            "vector_store": {"provider": "mock_vector_store"},
+            "llm": {"provider": "mock_llm"},
+            "embedder": {"provider": "mock_embedder"},
+        }
+        
+        crew = MockCrew(
+            memory_config={
+                "provider": "mem0",
+                "config": {"user_id": "test_user", "local_mem0_config": local_config},
+            }
+        )
+
+        mem0_storage = Mem0Storage(type="short_term", crew=crew)
+        return mem0_storage, mock_from_config, local_config
+
+
+def test_mem0_storage_uses_local_config(mem0_storage_with_local_config):
+    """Test that Mem0Storage correctly uses local_mem0_config when initializing Memory"""
+    _, mock_from_config, local_config = mem0_storage_with_local_config
+    mock_from_config.assert_called_once_with(local_config)