diff --git a/internal/app/app.go b/internal/app/app.go
index 943f1b24e4a..05aba6915b4 100644
--- a/internal/app/app.go
+++ b/internal/app/app.go
@@ -3,6 +3,7 @@ package app
 import (
 	"context"
 	"database/sql"
+	"github.com/sst/opencode/internal/setup"
 	"maps"
 	"sync"
 	"time"
@@ -95,6 +96,29 @@ func New(ctx context.Context, conn *sql.DB) (*App, error) {
 	// Initialize LSP clients in the background
 	go app.initLSPClients(ctx)
 
+	// Initialize setup
+	setup.Init()
+
+	if !setup.IsSetupComplete() {
+		app.PrimaryAgent, err = agent.NewSetupAgent()
+
+		if err != nil {
+			slog.Error("Failed to create setup agent", "error", err)
+			return nil, err
+		}
+
+		return app, nil
+	}
+
+	app.InitializePrimaryAgent()
+
+	return app, nil
+}
+
+// InitializePrimaryAgent initializes the primary agent with the necessary tools and services
+func (app *App) InitializePrimaryAgent() {
+	var err error
+
 	app.PrimaryAgent, err = agent.NewAgent(
 		config.AgentPrimary,
 		app.Sessions,
@@ -107,12 +131,11 @@ func New(ctx context.Context, conn *sql.DB) (*App, error) {
 			app.LSPClients,
 		),
 	)
+
 	if err != nil {
-		slog.Error("Failed to create primary agent", "error", err)
-		return nil, err
+		slog.Error("Failed to initialize primary agent", err)
+		panic(err)
 	}
-
-	return app, nil
 }
 
 // initTheme sets the application theme based on the configuration
diff --git a/internal/config/config.go b/internal/config/config.go
index 70c05ac0250..f9fc2128da2 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -178,9 +178,21 @@ func Load(workingDir string, debug bool, lvl *slog.LevelVar) (*Config, error) {
 		Model:     cfg.Agents[AgentTitle].Model,
 		MaxTokens: 80,
 	}
+
 	return cfg, nil
 }
 
+func Update(updateCfg func(config *Config)) error {
+	if cfg == nil {
+		return fmt.Errorf("config not loaded")
+	}
+
+	return updateCfgFile(func(config *Config) {
+		updateCfg(config)
+		cfg = config
+	})
+}
+
 // configureViper sets up viper's configuration paths and environment variables.
 func configureViper() {
 	viper.SetConfigName(fmt.Sprintf(".%s", appName))
diff --git a/internal/llm/agent/setup-agent.go b/internal/llm/agent/setup-agent.go
new file mode 100644
index 00000000000..9db7b30424c
--- /dev/null
+++ b/internal/llm/agent/setup-agent.go
@@ -0,0 +1,57 @@
+package agent
+
+import (
+	"context"
+	"fmt"
+	"github.com/sst/opencode/internal/config"
+	"github.com/sst/opencode/internal/llm/models"
+	"github.com/sst/opencode/internal/llm/provider"
+	"github.com/sst/opencode/internal/message"
+)
+
+type setupAgent struct {
+}
+
+func NewSetupAgent() (Service, error) {
+	agent := &setupAgent{}
+
+	return agent, nil
+}
+
+func (a *setupAgent) Cancel(sessionID string) {
+
+}
+
+func (a *setupAgent) IsBusy() bool {
+	return true
+}
+
+func (a *setupAgent) IsSessionBusy(sessionID string) bool {
+	return true
+}
+
+func (a *setupAgent) Run(ctx context.Context, sessionID string, content string, attachments ...message.Attachment) (<-chan AgentEvent, error) {
+	return nil, ErrSessionBusy
+}
+
+func (a *setupAgent) GetUsage(ctx context.Context, sessionID string) (*int64, error) {
+	usage := int64(0)
+
+	return &usage, nil
+}
+
+func (a *setupAgent) EstimateContextWindowUsage(ctx context.Context, sessionID string) (float64, bool, error) {
+	return 0, false, nil
+}
+
+func (a *setupAgent) TrackUsage(ctx context.Context, sessionID string, model models.Model, usage provider.TokenUsage) error {
+	return nil
+}
+
+func (a *setupAgent) Update(agentName config.AgentName, modelID models.ModelID) (models.Model, error) {
+	return models.Model{}, fmt.Errorf("cannot change model while processing requests")
+}
+
+func (a *setupAgent) CompactSession(ctx context.Context, sessionID string, force bool) error {
+	return nil
+}
diff --git a/internal/llm/models/models.go b/internal/llm/models/models.go
index bfdd0d2d8f5..c3ce39eb59a 100644
--- a/internal/llm/models/models.go
+++ b/internal/llm/models/models.go
@@ -1,6 +1,8 @@
 package models
 
-import "maps"
+import (
+	"maps"
+)
 
 type (
 	ModelID       string
@@ -52,3 +54,84 @@ func init() {
 	maps.Copy(SupportedModels, XAIModels)
 	maps.Copy(SupportedModels, VertexAIGeminiModels)
 }
+
+var providerLabels map[ModelProvider]string
+var providerList []ModelProvider
+
+// AvailableProviders returns a list of all available providers
+func AvailableProviders() ([]ModelProvider, map[ModelProvider]string) {
+	if providerLabels != nil && providerList != nil {
+		return providerList, providerLabels
+	}
+
+	providerLabels = make(map[ModelProvider]string)
+	providerLabels[ProviderAnthropic] = "Anthropic"
+	providerLabels[ProviderAzure] = "Azure"
+	providerLabels[ProviderBedrock] = "Bedrock"
+	providerLabels[ProviderGemini] = "Gemini"
+	providerLabels[ProviderGROQ] = "Groq"
+	providerLabels[ProviderOpenAI] = "OpenAI"
+	providerLabels[ProviderOpenRouter] = "OpenRouter"
+	providerLabels[ProviderVertexAI] = "Vertex AI"
+	providerLabels[ProviderXAI] = "xAI"
+
+	providerList = make([]ModelProvider, 0, len(providerLabels))
+	providerList = append(providerList, ProviderAnthropic)
+	providerList = append(providerList, ProviderAzure)
+	// FIXME: Re-add when the setup wizard supports it
+	// providerList = append(providerList, ProviderBedrock)
+	providerList = append(providerList, ProviderGemini)
+	providerList = append(providerList, ProviderGROQ)
+	providerList = append(providerList, ProviderOpenAI)
+	providerList = append(providerList, ProviderOpenRouter)
+	// FIXME: Re-add when the setup wizard supports it
+	// providerList = append(providerList, ProviderVertexAI)
+	providerList = append(providerList, ProviderXAI)
+
+	return providerList, providerLabels
+}
+
+var modelsByProvider map[ModelProvider][]Model
+
+// AvailableModelsByProvider returns a list of all available models by provider
+func AvailableModelsByProvider() map[ModelProvider][]Model {
+	if modelsByProvider != nil {
+		return modelsByProvider
+	}
+
+	providers, _ := AvailableProviders()
+
+	modelsByProviderMap := make(map[ModelProvider]map[ModelID]Model)
+	modelsByProviderMap[ProviderAnthropic] = AnthropicModels
+	modelsByProviderMap[ProviderAzure] = AzureModels
+	modelsByProviderMap[ProviderBedrock] = BedrockModels
+	modelsByProviderMap[ProviderGemini] = GeminiModels
+	modelsByProviderMap[ProviderGROQ] = GroqModels
+	modelsByProviderMap[ProviderOpenAI] = OpenAIModels
+	modelsByProviderMap[ProviderOpenRouter] = OpenRouterModels
+	modelsByProviderMap[ProviderVertexAI] = VertexAIGeminiModels
+	modelsByProviderMap[ProviderXAI] = XAIModels
+
+	modelsByProvider = make(map[ModelProvider][]Model)
+
+	// Add models to the map sorted alphabetically
+	for _, provider := range providers {
+		models := make([]Model, 0, len(modelsByProviderMap[provider]))
+		for _, model := range modelsByProviderMap[provider] {
+			models = append(models, model)
+		}
+
+		// Sort models by alphabetical order
+		for i := 0; i < len(models)-1; i++ {
+			for j := i + 1; j < len(models); j++ {
+				if models[i].Name > models[j].Name {
+					models[i], models[j] = models[j], models[i]
+				}
+			}
+		}
+
+		modelsByProvider[provider] = models
+	}
+
+	return modelsByProvider
+}
diff --git a/internal/setup/setup.go b/internal/setup/setup.go
new file mode 100644
index 00000000000..0fa4fea83ed
--- /dev/null
+++ b/internal/setup/setup.go
@@ -0,0 +1,69 @@
+package setup
+
+import (
+	"github.com/sst/opencode/internal/config"
+	"github.com/sst/opencode/internal/llm/models"
+	"log/slog"
+)
+
+// Global variable to track if setup is complete
+var setupComplete = false
+
+// IsSetupComplete checks if the setup is complete
+func IsSetupComplete() bool {
+	return setupComplete
+}
+
+func markSetupComplete() {
+	setupComplete = true
+}
+
+func Init() {
+	cfg := config.Get()
+	if cfg == nil || len(cfg.Agents) < 1 {
+		return
+	}
+
+	// Ensure primary agent is set
+	_, exists := cfg.Agents[config.AgentPrimary]
+	if exists {
+		markSetupComplete()
+	}
+}
+
+func CompleteSetup(provider models.ModelProvider, model models.Model, apiKey string) {
+	err := config.Update(func(cfg *config.Config) {
+		// Add Agent
+		if cfg.Agents == nil {
+			cfg.Agents = make(map[config.AgentName]config.Agent)
+		}
+		cfg.Agents[config.AgentPrimary] = config.Agent{
+			Model:     model.ID,
+			MaxTokens: model.DefaultMaxTokens,
+		}
+		cfg.Agents[config.AgentTitle] = config.Agent{
+			Model:     model.ID,
+			MaxTokens: 80,
+		}
+		cfg.Agents[config.AgentTask] = config.Agent{
+			Model:     model.ID,
+			MaxTokens: model.DefaultMaxTokens,
+		}
+
+		// Add Provider
+		if cfg.Providers == nil {
+			cfg.Providers = make(map[models.ModelProvider]config.Provider)
+		}
+
+		cfg.Providers[provider] = config.Provider{
+			APIKey: apiKey,
+		}
+	})
+
+	if err != nil {
+		slog.Debug("Failed to complete setup", "error", err)
+		panic(err)
+	}
+
+	markSetupComplete()
+}
diff --git a/internal/tui/components/chat/editor.go b/internal/tui/components/chat/editor.go
index 212ad5529c1..2d06e4d0286 100644
--- a/internal/tui/components/chat/editor.go
+++ b/internal/tui/components/chat/editor.go
@@ -15,6 +15,7 @@ import (
 	"github.com/charmbracelet/lipgloss"
 	"github.com/sst/opencode/internal/app"
 	"github.com/sst/opencode/internal/message"
+	"github.com/sst/opencode/internal/setup"
 	"github.com/sst/opencode/internal/status"
 	"github.com/sst/opencode/internal/tui/components/dialog"
 	"github.com/sst/opencode/internal/tui/image"
@@ -317,14 +318,22 @@ func (m *editorCmp) View() string {
 		Bold(true).
 		Foreground(t.Primary())
 
+	// Only show textarea if setup is complete
+	prefix := ""
+	textarea := ""
+	if setup.IsSetupComplete() {
+		prefix = style.Render(">")
+		textarea = m.textarea.View()
+	}
+
 	if len(m.attachments) == 0 {
-		return lipgloss.JoinHorizontal(lipgloss.Top, style.Render(">"), m.textarea.View())
+		return lipgloss.JoinHorizontal(lipgloss.Top, prefix, textarea)
 	}
 	m.textarea.SetHeight(m.height - 1)
+
 	return lipgloss.JoinVertical(lipgloss.Top,
 		m.attachmentsContent(),
-		lipgloss.JoinHorizontal(lipgloss.Top, style.Render(">"),
-			m.textarea.View()),
+		lipgloss.JoinHorizontal(lipgloss.Top, prefix, textarea),
 	)
 }
 
diff --git a/internal/tui/components/dialog/setup.go b/internal/tui/components/dialog/setup.go
new file mode 100644
index 00000000000..bc345d45bd9
--- /dev/null
+++ b/internal/tui/components/dialog/setup.go
@@ -0,0 +1,427 @@
+package dialog
+
+import (
+	"github.com/charmbracelet/bubbles/cursor"
+	"github.com/charmbracelet/bubbles/key"
+	"github.com/charmbracelet/bubbles/textinput"
+	tea "github.com/charmbracelet/bubbletea"
+	"github.com/charmbracelet/lipgloss"
+	"github.com/sst/opencode/internal/llm/models"
+	"github.com/sst/opencode/internal/tui/components/llm"
+	"github.com/sst/opencode/internal/tui/layout"
+	"github.com/sst/opencode/internal/tui/styles"
+	"github.com/sst/opencode/internal/tui/theme"
+	"github.com/sst/opencode/internal/tui/util"
+	"strings"
+)
+
+type SetupDialog interface {
+	tea.Model
+	layout.Bindings
+}
+
+type SetupStep string
+
+const (
+	Start          SetupStep = "start"
+	SelectProvider SetupStep = "select-provider"
+	SelectModel    SetupStep = "select-model"
+	InputApiKey    SetupStep = "input-api-key"
+)
+
+type setupDialogCmp struct {
+	currentModel        string
+	currentProvider     string
+	keys                setupMapping
+	modelList           llm.ModelList
+	providerList        llm.ProviderList
+	selectedModelIdx    int
+	selectedProviderIdx int
+	step                SetupStep
+	textInput           textinput.Model
+	textInputError      string
+	width               int
+}
+
+type setupMapping struct {
+	Up     key.Binding
+	Down   key.Binding
+	Enter  key.Binding
+	Escape key.Binding
+}
+
+var setupKeys = setupMapping{
+	Up: key.NewBinding(
+		key.WithKeys("up"),
+		key.WithHelp("↑", "prev"),
+	),
+	Down: key.NewBinding(
+		key.WithKeys("down"),
+		key.WithHelp("↓", "next"),
+	),
+	Enter: key.NewBinding(
+		key.WithKeys("enter"),
+		key.WithHelp("↵", "next"),
+	),
+	Escape: key.NewBinding(
+		key.WithKeys("esc"),
+		key.WithHelp("esc", "back"),
+	),
+}
+
+func (s *setupDialogCmp) Init() tea.Cmd {
+	return tea.Batch(textinput.Blink)
+}
+
+func (s *setupDialogCmp) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
+	switch msg := msg.(type) {
+	case cursor.BlinkMsg:
+		if s.step == InputApiKey {
+			// textinput.Update() does not work to make the cursor blink
+			// we need to manually toggle the blink state
+			s.textInput.Cursor.Blink = !s.textInput.Cursor.Blink
+			return s, nil
+		}
+	case tea.KeyMsg:
+		var cmd tea.Cmd
+		var cmds []tea.Cmd
+
+		if s.step == Start && key.Matches(msg, setupKeys.Enter) {
+			s.step = SelectProvider
+			return s, nil
+		}
+
+		if s.step == SelectProvider {
+			switch {
+			case key.Matches(msg, setupKeys.Enter):
+				s.modelList.SetProvider(s.providerList.GetSelectedProvider().Name)
+				s.step = SelectModel
+			case key.Matches(msg, setupKeys.Escape):
+				s.step = Start
+			}
+
+			s.providerList, cmd = s.providerList.Update(msg)
+			cmds = append(cmds, cmd)
+
+			return s, tea.Batch(cmds...)
+		}
+
+		if s.step == SelectModel {
+			switch {
+			case key.Matches(msg, setupKeys.Enter):
+				s.step = InputApiKey
+				s.textInput.Focus()
+			case key.Matches(msg, setupKeys.Escape):
+				s.step = SelectProvider
+			}
+
+			s.modelList, cmd = s.modelList.Update(msg)
+			cmds = append(cmds, cmd)
+
+			return s, nil
+		}
+
+		if s.step == InputApiKey {
+			switch {
+			case key.Matches(msg, setupKeys.Escape):
+				s.step = SelectModel
+
+			case key.Matches(msg, setupKeys.Enter):
+				if s.textInput.Value() == "" {
+					s.textInputError = "Field cannot be empty"
+					return s, nil
+				}
+
+				return s, util.CmdHandler(CloseSetupDialogMsg{
+					Provider: s.providerList.GetSelectedProvider().Name,
+					Model:    s.modelList.GetSelectedModel().Model,
+					APIKey:   s.textInput.Value(),
+				})
+			}
+
+			s.textInput, cmd = s.textInput.Update(msg)
+			cmds = append(cmds, cmd)
+
+			return s, tea.Batch(cmds...)
+		}
+	}
+
+	return s, nil
+}
+
+func (s *setupDialogCmp) View() string {
+	switch s.step {
+	default:
+		return s.RenderSetupStep()
+	case Start:
+		return s.RenderSetupStep()
+	case SelectProvider:
+		return s.RenderSelectProviderStep()
+	case SelectModel:
+		return s.RenderSelectModelStep()
+	case InputApiKey:
+		return s.RenderInputApiKeyStep()
+	}
+}
+
+func (s *setupDialogCmp) renderAndPadLine(text string, width int) string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+	spacerStyle := baseStyle.Background(t.Background())
+	return text + spacerStyle.Render(strings.Repeat(" ", width-lipgloss.Width(text)))
+}
+
+func (s *setupDialogCmp) renderHelp() string {
+	// We have to render the help manually due to artifacting when using help.View(s.keys)
+	// this is a bug with the bubbletea/help package
+	t := theme.CurrentTheme()
+	sepStyle := styles.BaseStyle().Foreground(t.Primary())
+	sep := sepStyle.Render(" • ")
+
+	keyStyle := styles.BaseStyle().Foreground(t.Text())
+	descStyle := styles.BaseStyle().Foreground(t.TextMuted())
+	space := styles.BaseStyle().Foreground(t.Background()).Render(" ")
+	key1 := keyStyle.Render(s.keys.Escape.Help().Key)
+	desc1 := descStyle.Render(s.keys.Escape.Help().Desc)
+	key2 := keyStyle.Render(s.keys.Enter.Help().Key)
+	desc2 := descStyle.Render(s.keys.Enter.Help().Desc)
+
+	return lipgloss.JoinHorizontal(
+		lipgloss.Left,
+		key1,
+		space,
+		desc1,
+		sep,
+		key2,
+		space,
+		desc2,
+	)
+}
+
+func (s *setupDialogCmp) RenderSetupStep() string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+
+	nextStyle := baseStyle
+	nextStyle = nextStyle.Background(t.Primary()).Foreground(t.Background())
+	spacerStyle := baseStyle.Background(t.Background())
+
+	nextButton := nextStyle.Padding(0, 1).Render("Proceed")
+
+	buttons := lipgloss.JoinHorizontal(lipgloss.Left, nextButton)
+
+	line1 := "✨ Welcome to OpenCode"
+	line2 := "Your AI-powered coding companion is almost ready!"
+	line3 := "Let's get you set up with your preferred AI provider, model, and API key."
+
+	width := lipgloss.Width(line3)
+	remainingWidth := width - lipgloss.Width(buttons)
+	if remainingWidth > 0 {
+		buttons = spacerStyle.Render(strings.Repeat(" ", remainingWidth)) + buttons
+	}
+
+	title := baseStyle.
+		Background(t.Background()).
+		Foreground(t.Primary()).
+		Bold(true).
+		Render("Setup Wizard")
+
+	content := baseStyle.Render(
+		lipgloss.JoinVertical(
+			lipgloss.Left,
+			s.renderAndPadLine(title, width),
+			"",
+			s.renderAndPadLine(line1, width),
+			"",
+			s.renderAndPadLine(line2, width),
+			"",
+			s.renderAndPadLine(line3, width),
+			"",
+			buttons,
+		),
+	)
+
+	return baseStyle.Padding(1, 2).
+		Border(lipgloss.RoundedBorder()).
+		BorderBackground(t.Background()).
+		BorderForeground(t.TextMuted()).
+		Width(lipgloss.Width(content) + 4).
+		Render(content)
+}
+
+func (s *setupDialogCmp) RenderSelectProviderStep() string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+
+	maxWidth := 36
+	helpText := s.renderHelp()
+	helpWidth := lipgloss.Width(helpText)
+	maxWidth = max(maxWidth, helpWidth)
+
+	// Add padding to help
+	remainingWidth := maxWidth - lipgloss.Width(helpText)
+	if remainingWidth > 0 {
+		helpText = strings.Repeat(" ", remainingWidth) + helpText
+	}
+
+	title := baseStyle.
+		Foreground(t.Primary()).
+		Bold(true).
+		Width(maxWidth).
+		Padding(0, 1).
+		Render("Select Provider")
+
+	content := lipgloss.JoinVertical(
+		lipgloss.Left,
+		title,
+		baseStyle.Width(maxWidth).Render(""),
+		s.providerList.View(),
+		baseStyle.Width(maxWidth).Render(""),
+		baseStyle.Width(maxWidth).Render(helpText),
+	)
+
+	return baseStyle.Padding(1, 2).
+		Border(lipgloss.RoundedBorder()).
+		BorderBackground(t.Background()).
+		BorderForeground(t.TextMuted()).
+		Width(lipgloss.Width(content) + 4).
+		Render(content)
+}
+
+func (s *setupDialogCmp) RenderSelectModelStep() string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+
+	maxWidth := 36
+	helpText := s.renderHelp()
+	helpWidth := lipgloss.Width(helpText)
+	maxWidth = max(maxWidth, helpWidth)
+
+	// Add padding to help
+	remainingWidth := maxWidth - lipgloss.Width(helpText)
+	if remainingWidth > 0 {
+		helpText = strings.Repeat(" ", remainingWidth) + helpText
+	}
+
+	title := baseStyle.
+		Foreground(t.Primary()).
+		Bold(true).
+		Width(maxWidth).
+		Padding(0, 1).
+		Render("Select Model")
+
+	content := lipgloss.JoinVertical(
+		lipgloss.Left,
+		title,
+		baseStyle.Width(maxWidth).Render(""),
+		s.modelList.View(),
+		baseStyle.Width(maxWidth).Render(""),
+		baseStyle.Width(maxWidth).Render(helpText),
+	)
+
+	return baseStyle.Padding(1, 2).
+		Border(lipgloss.RoundedBorder()).
+		BorderBackground(t.Background()).
+		BorderForeground(t.TextMuted()).
+		Width(lipgloss.Width(content) + 4).
+		Render(content)
+}
+
+func (s *setupDialogCmp) RenderInputApiKeyStep() string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+
+	// Calculate width needed for content
+	maxWidth := 60 // Width for explanation text
+
+	helpText := s.renderHelp()
+	helpWidth := lipgloss.Width(helpText)
+	maxWidth = max(60, helpWidth) // Limit width to avoid overflow
+
+	// Add padding to help
+	remainingWidth := maxWidth - lipgloss.Width(helpText)
+	if remainingWidth > 0 {
+		helpText = strings.Repeat(" ", remainingWidth) + helpText
+	}
+
+	title := baseStyle.
+		Foreground(t.Primary()).
+		Bold(true).
+		Width(maxWidth).
+		Padding(0, 1).
+		Render("API Key")
+
+	inputField := baseStyle.
+		Foreground(t.Text()).
+		Width(maxWidth).
+		Padding(1, 1).
+		Render(s.textInput.View())
+
+	errorStyle := baseStyle.Foreground(t.Error()).PaddingLeft(1)
+	errorText := ""
+	if s.textInputError != "" {
+		errorText = errorStyle.Render(s.renderAndPadLine(s.textInputError, maxWidth-1))
+	}
+
+	maxWidth = min(maxWidth, s.width-10)
+
+	content := lipgloss.JoinVertical(
+		lipgloss.Left,
+		title,
+		inputField,
+		errorText,
+		baseStyle.Width(maxWidth).Render(helpText),
+	)
+
+	return baseStyle.Padding(1, 2).
+		Border(lipgloss.RoundedBorder()).
+		BorderBackground(t.Background()).
+		BorderForeground(t.TextMuted()).
+		Background(t.Background()).
+		Width(lipgloss.Width(content) + 4).
+		Render(content)
+}
+
+func (s *setupDialogCmp) BindingKeys() []key.Binding {
+	return layout.KeyMapToSlice(setupKeys)
+}
+
+func NewSetupDialogCmp() SetupDialog {
+	t := theme.CurrentTheme()
+
+	ti := textinput.New()
+	ti.Placeholder = "Enter API Key..."
+	ti.Width = 56
+	ti.Prompt = ""
+	ti.PlaceholderStyle = ti.PlaceholderStyle.Background(t.Background())
+	ti.PromptStyle = ti.PromptStyle.Background(t.Background())
+	ti.TextStyle = ti.TextStyle.Background(t.Background())
+
+	listWidth := new(int)
+	*listWidth = 36
+
+	return &setupDialogCmp{
+		keys: setupKeys,
+		modelList: llm.NewModelList(llm.NewModelListOptions{
+			InitialProvider: models.ProviderAnthropic,
+			Width:           listWidth,
+		}),
+		providerList: llm.NewProviderList(llm.NewProviderListOptions{
+			Width: listWidth,
+		}),
+		step:      Start,
+		textInput: ti,
+	}
+}
+
+// CloseSetupDialogMsg is a message that is sent when the init dialog is closed.
+type CloseSetupDialogMsg struct {
+	APIKey   string
+	Model    models.Model
+	Provider models.ModelProvider
+}
+
+// ShowSetupDialogMsg is a message that is sent to show the init dialog.
+type ShowSetupDialogMsg struct {
+	Show bool
+}
diff --git a/internal/tui/components/llm/model-list.go b/internal/tui/components/llm/model-list.go
new file mode 100644
index 00000000000..697056b88f3
--- /dev/null
+++ b/internal/tui/components/llm/model-list.go
@@ -0,0 +1,113 @@
+package llm
+
+import (
+	tea "github.com/charmbracelet/bubbletea"
+	"github.com/sst/opencode/internal/llm/models"
+	utilComponents "github.com/sst/opencode/internal/tui/components/util"
+	"github.com/sst/opencode/internal/tui/styles"
+	"github.com/sst/opencode/internal/tui/theme"
+)
+
+type ModelListItem struct {
+	Model models.Model
+}
+
+func (p ModelListItem) Render(selected bool, width int) string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+
+	descStyle := baseStyle.Width(width).Foreground(t.TextMuted())
+	itemStyle := baseStyle.Width(width).
+		Background(t.Background()).
+		Foreground(t.Text())
+
+	if selected {
+		itemStyle = itemStyle.
+			Background(t.Primary()).
+			Foreground(t.Background()).
+			Bold(true)
+		descStyle = descStyle.
+			Background(t.Primary()).
+			Foreground(t.Background())
+	}
+
+	title := itemStyle.Padding(0, 1).Render(p.Model.Name)
+	return title
+}
+
+type ModelList struct {
+	list   utilComponents.SimpleList[ModelListItem]
+	models map[models.ModelProvider][]models.Model
+}
+
+func (p *ModelList) View() string {
+	return p.list.View()
+}
+
+func (p *ModelList) Update(msg tea.Msg) (ModelList, tea.Cmd) {
+	l, cmd := p.list.Update(msg)
+	p.list = l.(utilComponents.SimpleList[ModelListItem])
+
+	return *p, cmd
+}
+
+func BuildListItemsForProvider(provider models.ModelProvider) []ModelListItem {
+	modelsByProvider := models.AvailableModelsByProvider()
+
+	modelListItems := make([]ModelListItem, 0, len(modelsByProvider[provider]))
+	for _, model := range modelsByProvider[provider] {
+		modelListItems = append(modelListItems, ModelListItem{Model: model})
+	}
+
+	return modelListItems
+}
+
+func (p *ModelList) SetProvider(provider models.ModelProvider) {
+	modelListItems := BuildListItemsForProvider(provider)
+
+	p.list.SetItems(modelListItems)
+}
+
+func (p *ModelList) GetSelectedModel() ModelListItem {
+	item, _ := p.list.GetSelectedItem()
+
+	return item
+}
+
+type NewModelListOptions struct {
+	AlphaNumericKeys *bool
+	FallbackMsg      *string
+	InitialProvider  models.ModelProvider
+	MaxVisibleItems  *int
+	Width            *int
+}
+
+func NewModelList(options NewModelListOptions) ModelList {
+	var maxVisibleItems = 24
+	if options.MaxVisibleItems != nil {
+		maxVisibleItems = *options.MaxVisibleItems
+	}
+
+	var fallbackMsg = "No models found"
+	if options.FallbackMsg != nil {
+		fallbackMsg = *options.FallbackMsg
+	}
+
+	var useAlphaNumericKeys = false
+	if options.AlphaNumericKeys != nil {
+		useAlphaNumericKeys = *options.AlphaNumericKeys
+	}
+
+	var width = 36
+	if options.Width != nil {
+		width = *options.Width
+	}
+
+	listItems := BuildListItemsForProvider(options.InitialProvider)
+	list := utilComponents.NewSimpleList(listItems, maxVisibleItems, fallbackMsg, useAlphaNumericKeys)
+	list.SetMaxWidth(width)
+
+	return ModelList{
+		list: list,
+	}
+}
diff --git a/internal/tui/components/llm/provider-list.go b/internal/tui/components/llm/provider-list.go
new file mode 100644
index 00000000000..cee6e835e5e
--- /dev/null
+++ b/internal/tui/components/llm/provider-list.go
@@ -0,0 +1,101 @@
+package llm
+
+import (
+	tea "github.com/charmbracelet/bubbletea"
+	"github.com/sst/opencode/internal/llm/models"
+	utilComponents "github.com/sst/opencode/internal/tui/components/util"
+	"github.com/sst/opencode/internal/tui/styles"
+	"github.com/sst/opencode/internal/tui/theme"
+)
+
+type ProviderListItem struct {
+	Label string
+	Name  models.ModelProvider
+}
+
+func (p ProviderListItem) Render(selected bool, width int) string {
+	t := theme.CurrentTheme()
+	baseStyle := styles.BaseStyle()
+
+	descStyle := baseStyle.Width(width).Foreground(t.TextMuted())
+	itemStyle := baseStyle.Width(width).
+		Background(t.Background()).
+		Foreground(t.Text())
+
+	if selected {
+		itemStyle = itemStyle.
+			Background(t.Primary()).
+			Foreground(t.Background()).
+			Bold(true)
+		descStyle = descStyle.
+			Background(t.Primary()).
+			Foreground(t.Background())
+	}
+
+	title := itemStyle.Padding(0, 1).Render(p.Label)
+	return title
+}
+
+type ProviderList struct {
+	list utilComponents.SimpleList[ProviderListItem]
+}
+
+func (p *ProviderList) View() string {
+	return p.list.View()
+}
+
+func (p *ProviderList) Update(msg tea.Msg) (ProviderList, tea.Cmd) {
+	l, cmd := p.list.Update(msg)
+	p.list = l.(utilComponents.SimpleList[ProviderListItem])
+
+	return *p, cmd
+}
+
+func (p *ProviderList) GetSelectedProvider() ProviderListItem {
+	item, _ := p.list.GetSelectedItem()
+
+	return item
+}
+
+type NewProviderListOptions struct {
+	AlphaNumericKeys *bool
+	FallbackMsg      *string
+	MaxVisibleItems  *int
+	Width            *int
+}
+
+func NewProviderList(options NewProviderListOptions) ProviderList {
+	providers, providerLabels := models.AvailableProviders()
+
+	providerListItems := make([]ProviderListItem, 0, len(providers))
+	for _, provider := range providers {
+		providerListItems = append(providerListItems, ProviderListItem{Label: providerLabels[provider], Name: provider})
+	}
+
+	var maxVisibleItems = len(providers)
+	if options.MaxVisibleItems != nil {
+		maxVisibleItems = *options.MaxVisibleItems
+	}
+
+	var fallbackMsg = "No provider found"
+	if options.FallbackMsg != nil {
+		fallbackMsg = *options.FallbackMsg
+	}
+
+	var useAlphaNumericKeys = false
+	if options.AlphaNumericKeys != nil {
+		useAlphaNumericKeys = *options.AlphaNumericKeys
+	}
+
+	var width = 36
+	if options.Width != nil {
+		width = *options.Width
+	}
+
+	list := utilComponents.NewSimpleList(providerListItems, maxVisibleItems, fallbackMsg, useAlphaNumericKeys)
+	list.SetMaxWidth(width)
+
+	return ProviderList{
+		list: list,
+	}
+}
diff --git a/internal/tui/tui.go b/internal/tui/tui.go
index 56be0461970..08ea9155a5f 100644
--- a/internal/tui/tui.go
+++ b/internal/tui/tui.go
@@ -3,6 +3,7 @@ package tui
 import (
 	"context"
 	"fmt"
+	"github.com/sst/opencode/internal/setup"
 	"log/slog"
 	"strings"
 
@@ -83,7 +84,7 @@ var keys = keyMap{
 		key.WithKeys("ctrl+t"),
 		key.WithHelp("ctrl+t", "switch theme"),
 	),
-	
+
 	Tools: key.NewBinding(
 		key.WithKeys("f9"),
 		key.WithHelp("f9", "show available tools"),
@@ -126,6 +127,9 @@ type appModel struct {
 	showSessionDialog bool
 	sessionDialog     dialog.SessionDialog
 
+	showSetupDialog bool
+	setupDialog     dialog.SetupDialog
+
 	showCommandDialog bool
 	commandDialog     dialog.CommandDialog
 	commands          []dialog.Command
@@ -144,7 +148,7 @@ type appModel struct {
 
 	showMultiArgumentsDialog bool
 	multiArgumentsDialog     dialog.MultiArgumentsDialogCmp
-	
+
 	showToolsDialog bool
 	toolsDialog     dialog.ToolsDialog
 }
@@ -162,6 +166,8 @@ func (a appModel) Init() tea.Cmd {
 	cmds = append(cmds, cmd)
 	cmd = a.sessionDialog.Init()
 	cmds = append(cmds, cmd)
+	cmd = a.setupDialog.Init()
+	cmds = append(cmds, cmd)
 	cmd = a.commandDialog.Init()
 	cmds = append(cmds, cmd)
 	cmd = a.modelDialog.Init()
@@ -175,14 +181,18 @@ func (a appModel) Init() tea.Cmd {
 	cmd = a.toolsDialog.Init()
 	cmds = append(cmds, cmd)
 
-	// Check if we should show the init dialog
+	// Check if we should show the setup or init dialog
 	cmds = append(cmds, func() tea.Msg {
-		shouldShow, err := config.ShouldShowInitDialog()
+		if !setup.IsSetupComplete() {
+			return dialog.ShowSetupDialogMsg{Show: true}
+		}
+
+		shouldShowInit, err := config.ShouldShowInitDialog()
 		if err != nil {
 			status.Error("Failed to check init status: " + err.Error())
 			return nil
 		}
-		return dialog.ShowInitDialogMsg{Show: shouldShow}
+		return dialog.ShowInitDialogMsg{Show: shouldShowInit}
 	})
 
 	return tea.Batch(cmds...)
@@ -203,6 +213,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 	var cmd tea.Cmd
 	switch msg := msg.(type) {
 	case cursor.BlinkMsg:
+		a.setupDialog.Update(msg)
 		return a.updateAllPages(msg)
 	case spinner.TickMsg:
 		return a.updateAllPages(msg)
@@ -283,6 +294,11 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 
 	case dialog.CloseQuitMsg:
 		a.showQuit = false
+
+		if !setup.IsSetupComplete() {
+			a.showSetupDialog = true
+		}
+
 		return a, nil
 
 	case dialog.CloseSessionDialogMsg:
@@ -292,6 +308,23 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		}
 		return a, nil
 
+	case dialog.CloseSetupDialogMsg:
+		a.showSetupDialog = false
+
+		// Complete setup
+		setup.CompleteSetup(msg.Provider, msg.Model, msg.APIKey)
+
+		// Reinitialize the model dialog
+		a.modelDialog.Init()
+
+		// Reinitialize the primary agent
+		a.app.InitializePrimaryAgent()
+
+		// Initialize project
+		_, cmd = a.Update(dialog.CloseInitDialogMsg{Initialize: true})
+
+		return a, cmd
+
 	case dialog.CloseCommandDialogMsg:
 		a.showCommandDialog = false
 		return a, nil
@@ -299,11 +332,11 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 	case dialog.CloseThemeDialogMsg:
 		a.showThemeDialog = false
 		return a, nil
-		
+
 	case dialog.CloseToolsDialogMsg:
 		a.showToolsDialog = false
 		return a, nil
-		
+
 	case dialog.ShowToolsDialogMsg:
 		a.showToolsDialog = msg.Show
 		return a, nil
@@ -334,6 +367,10 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		a.showInitDialog = msg.Show
 		return a, nil
 
+	case dialog.ShowSetupDialogMsg:
+		a.showSetupDialog = msg.Show
+		return a, nil
+
 	case dialog.CloseInitDialogMsg:
 		a.showInitDialog = false
 		if msg.Initialize {
@@ -411,6 +448,9 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			if a.showSessionDialog {
 				a.showSessionDialog = false
 			}
+			if a.showSetupDialog {
+				a.showSetupDialog = false
+			}
 			if a.showCommandDialog {
 				a.showCommandDialog = false
 			}
@@ -436,7 +476,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				a.showThemeDialog = false
 				a.showModelDialog = false
 				a.showFilepicker = false
-				
+
 				// Load sessions and show the dialog
 				sessions, err := a.app.Sessions.List(context.Background())
 				if err != nil {
@@ -457,7 +497,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				// Close other dialogs
 				a.showToolsDialog = false
 				a.showModelDialog = false
-				
+
 				// Show commands dialog
 				if len(a.commands) == 0 {
 					status.Warn("No commands available")
@@ -478,7 +518,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				a.showToolsDialog = false
 				a.showThemeDialog = false
 				a.showFilepicker = false
-				
+
 				a.showModelDialog = true
 				return a, nil
 			}
@@ -489,17 +529,17 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				a.showToolsDialog = false
 				a.showModelDialog = false
 				a.showFilepicker = false
-				
+
 				a.showThemeDialog = true
 				return a, a.themeDialog.Init()
 			}
 			return a, nil
 		case key.Matches(msg, keys.Tools):
 			// Check if any other dialog is open
-			if a.currentPage == page.ChatPage && !a.showQuit && !a.showPermissions && 
-			   !a.showSessionDialog && !a.showCommandDialog && !a.showThemeDialog && 
-			   !a.showFilepicker && !a.showModelDialog && !a.showInitDialog && 
-			   !a.showMultiArgumentsDialog {
+			if a.currentPage == page.ChatPage && !a.showQuit && !a.showPermissions &&
+				!a.showSessionDialog && !a.showCommandDialog && !a.showThemeDialog &&
+				!a.showFilepicker && !a.showModelDialog && !a.showInitDialog &&
+				!a.showMultiArgumentsDialog {
 				// Toggle tools dialog
 				a.showToolsDialog = !a.showToolsDialog
 				if a.showToolsDialog {
@@ -522,6 +562,11 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				}
 				if a.showQuit {
 					a.showQuit = !a.showQuit
+
+					if !setup.IsSetupComplete() {
+						a.showSetupDialog = true
+					}
+
 					return a, nil
 				}
 				if a.showHelp {
@@ -555,7 +600,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				return a, nil
 			}
 			a.showHelp = !a.showHelp
-			
+
 			// Close other dialogs if opening help
 			if a.showHelp {
 				a.showToolsDialog = false
@@ -574,7 +619,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			a.showFilepicker = !a.showFilepicker
 			a.filepicker.ToggleFilepicker(a.showFilepicker)
 			a.app.SetFilepickerOpen(a.showFilepicker)
-			
+
 			// Close other dialogs if opening filepicker
 			if a.showFilepicker {
 				a.showToolsDialog = false
@@ -642,6 +687,16 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		}
 	}
 
+	if a.showSetupDialog {
+		d, setupCmd := a.setupDialog.Update(msg)
+		a.setupDialog = d.(dialog.SetupDialog)
+		cmds = append(cmds, setupCmd)
+		// Only block key messages send all other messages down
+		if _, ok := msg.(tea.KeyMsg); ok {
+			return a, tea.Batch(cmds...)
+		}
+	}
+
 	if a.showCommandDialog {
 		d, commandCmd := a.commandDialog.Update(msg)
 		a.commandDialog = d.(dialog.CommandDialog)
@@ -681,7 +736,7 @@ func (a appModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			return a, tea.Batch(cmds...)
 		}
 	}
-	
+
 	if a.showToolsDialog {
 		d, toolsCmd := a.toolsDialog.Update(msg)
 		a.toolsDialog = d.(dialog.ToolsDialog)
@@ -716,13 +771,13 @@ func getAvailableToolNames(app *app.App) []string {
 		app.History,
 		app.LSPClients,
 	)
-	
+
 	// Extract tool names
 	var toolNames []string
 	for _, tool := range allTools {
 		toolNames = append(toolNames, tool.Info().Name)
 	}
-	
+
 	return toolNames
 }
 
@@ -861,6 +916,21 @@ func (a appModel) View() string {
 		)
 	}
 
+	if a.showSetupDialog {
+		overlay := a.setupDialog.View()
+		row := lipgloss.Height(appView) / 2
+		row -= lipgloss.Height(overlay) / 2
+		col := lipgloss.Width(appView) / 2
+		col -= lipgloss.Width(overlay) / 2
+		appView = layout.PlaceOverlay(
+			col,
+			row,
+			overlay,
+			appView,
+			true,
+		)
+	}
+
 	if a.showModelDialog {
 		overlay := a.modelDialog.View()
 		row := lipgloss.Height(appView) / 2
@@ -931,7 +1001,7 @@ func (a appModel) View() string {
 			true,
 		)
 	}
-	
+
 	if a.showToolsDialog {
 		overlay := a.toolsDialog.View()
 		row := lipgloss.Height(appView) / 2
@@ -959,6 +1029,7 @@ func New(app *app.App) tea.Model {
 		help:          dialog.NewHelpCmp(),
 		quit:          dialog.NewQuitCmp(),
 		sessionDialog: dialog.NewSessionDialogCmp(),
+		setupDialog:   dialog.NewSetupDialogCmp(),
 		commandDialog: dialog.NewCommandDialogCmp(),
 		modelDialog:   dialog.NewModelDialogCmp(),
 		permissions:   dialog.NewPermissionDialogCmp(),