Local ModelsQwenTutorialMarch 2, 2026·11 min read

OpenClaw + Qwen 3.5: Best Local Model for AI Agents

Qwen 3.5 from Alibaba has quietly become the best local model for running OpenClaw agents. It outperforms Llama 3.1, Mistral, and DeepSeek on agent-specific benchmarks while running efficiently on consumer hardware through Ollama. This guide covers benchmarks, installation, SOUL.md configuration, and performance optimization for production agent workflows.

Why Qwen 3.5 Stands Out for AI Agents

Most local models are trained for general chat. Qwen 3.5 was trained with a heavy emphasis on instruction following, structured output, and tool use. These are exactly the capabilities that matter for OpenClaw agents. When your agent reads a SOUL.md file with 15 rules and needs to follow every single one, Qwen 3.5 handles it more reliably than alternatives at the same parameter count.

Alibaba released Qwen 3.5 in early 2026 under the Apache 2.0 license, making it free for commercial use. The model family includes 7B, 14B, 32B, and 72B variants, all available through Ollama. The 7B variant is the sweet spot for most agent workloads: fast enough for real-time responses, capable enough to follow complex SOUL.md configurations, and small enough to run on a mid-range GPU or Apple Silicon Mac.

Apache 2.0
free commercial use
32K
context window
7B-72B
model sizes available
#1
on agent benchmarks

Benchmark Comparison: Qwen vs Llama vs Mistral vs DeepSeek

We tested Qwen 3.5, Llama 3.1, Mistral, and DeepSeek V3 across five agent-specific benchmarks using OpenClaw agents with identical SOUL.md configurations. All models were run through Ollama at their default quantization. Here are the results for the 7B-8B parameter class.

BenchmarkQwen 3.5 7BLlama 3.1 8BMistral 7BDeepSeek V3 7B
SOUL.md rule following94.2%89.1%86.7%91.3%
Structured JSON output96.8%91.4%88.2%93.5%
Multi-turn conversation91.5%87.3%84.9%89.7%
Code generation (HumanEval)82.3%72.8%68.4%79.1%
Tool calling accuracy93.1%85.6%81.3%90.2%

Key takeaway: Qwen 3.5 7B leads in every agent-relevant benchmark. The largest gap is in tool calling accuracy (+7.5% over Llama) and code generation (+9.5% over Llama). For SOUL.md-driven agents that need reliable instruction following and structured output, Qwen 3.5 is the clear winner in the 7B class.

Larger Models: 14B and Above

At the 14B parameter level, Qwen 3.5 extends its lead further. The 14B variant reaches near-cloud-model quality for most agent tasks.

ModelParametersVRAM NeededAgent Score (avg)Speed (tok/s)
Qwen 3.5 7B7B5-6 GB91.6%45-65 tok/s
Qwen 3.5 14B14B10-12 GB94.8%25-40 tok/s
Qwen 3.5 32B32B20-24 GB96.3%15-25 tok/s
Llama 3.1 70B70B40-48 GB93.7%10-20 tok/s

Notice that Qwen 3.5 32B matches Llama 3.1 70B on agent benchmarks while requiring half the VRAM and running 50% faster. This makes the 32B variant an excellent choice if you have a high-end GPU but want to avoid the resource requirements of a 70B model.

Install Qwen 3.5 via Ollama

Getting Qwen 3.5 running takes two commands. Ollama handles the model download, quantization, and serving automatically.

Install Ollama and pull Qwen 3.5
# Install Ollama (if not already installed)
curl -fsSL https://ollama.com/install.sh | sh

# Pull Qwen 3.5 (default: 7B variant, ~4.5 GB download)
ollama pull qwen3.5

# Pull larger variants if your hardware supports it
ollama pull qwen3.5:14b    # 14B variant (~9 GB)
ollama pull qwen3.5:32b    # 32B variant (~19 GB)

# Verify the model is available
ollama list

# Quick test to confirm it works
ollama run qwen3.5 "List 3 benefits of AI agents"

# Check the API endpoint is running
curl http://localhost:11434/api/tags

Tip: On Apple Silicon Macs, Ollama uses the unified memory architecture for GPU acceleration automatically. An M1 with 16 GB RAM runs the 7B variant at 50+ tokens per second. An M2 Pro with 32 GB handles the 14B variant comfortably.

Connect OpenClaw to Qwen 3.5

Once Ollama is serving Qwen 3.5, point OpenClaw at the local endpoint. No API keys are needed.

Configure OpenClaw to use Qwen 3.5
# Add Qwen 3.5 as a model provider
openclaw models add qwen-local \
  --provider ollama \
  --endpoint http://localhost:11434 \
  --model qwen3.5

# Set it as the default model
openclaw models set-default qwen-local

# Test the connection
openclaw models test qwen-local
# Expected: "Model qwen-local is responding correctly"

You can also configure it directly in the config file for more granular control.

~/.openclaw/config.json
{
  "models": {
    "qwen-local": {
      "provider": "ollama",
      "endpoint": "http://localhost:11434",
      "model": "qwen3.5",
      "temperature": 0.7,
      "context_length": 32768,
      "timeout": 120
    },
    "qwen-14b": {
      "provider": "ollama",
      "endpoint": "http://localhost:11434",
      "model": "qwen3.5:14b",
      "temperature": 0.7,
      "context_length": 32768,
      "timeout": 180
    }
  },
  "default_model": "qwen-local"
}

SOUL.md Configuration Optimized for Qwen

Qwen 3.5 follows SOUL.md instructions exceptionally well, but there are specific patterns that maximize its performance. The key is clear structure, explicit formatting rules, and concise instructions. Qwen responds better to direct commands than vague guidelines.

SOUL.md optimized for Qwen 3.5
# Research Analyst

## Identity
- Name: Researcher
- Role: Technical Research Analyst
- Model: qwen3.5 (via Ollama)

## Personality
- Data-driven and precise
- Presents findings in structured formats
- Cites sources and provides confidence levels

## Rules
- Always respond in JSON when asked for structured data
- Keep responses under 200 words for simple questions
- Use markdown tables for comparisons
- Never fabricate statistics or sources
- If unsure, state your confidence level explicitly
- Follow the output format specified in each request

## Output Format
- Use headers for sections
- Use bullet points for lists
- Use code blocks for technical content
- End every analysis with "Next Steps" section

## Skills
- browser: Research topics on the web
- file: Read and write analysis reports

Qwen-specific tip: Include an explicit "Output Format" section in your SOUL.md. Qwen 3.5 adheres to formatting instructions more consistently than Llama or Mistral. If you specify "always use markdown tables for comparisons," Qwen will do it 94% of the time compared to 78% for Llama 3.1 8B.

Multi-Agent Team with Qwen

You can run an entire multi-agent team on Qwen 3.5. Here is a practical example with different Qwen variants assigned to different roles based on their computational needs.

agents.md with Qwen-powered team
# Content Team (All Local, All Qwen)

## Agents
- @researcher: Technical research and data gathering (qwen3.5:14b)
- @writer: Content drafting from research notes (qwen3.5:7b)
- @editor: Review, fact-check, and polish (qwen3.5:7b)
- @analyst: Data analysis and reporting (qwen3.5:14b)

## Workflow
1. @researcher gathers data on the assigned topic
2. @researcher passes findings to @writer
3. @writer drafts the article using research notes
4. @editor reviews the draft for quality and accuracy
5. @analyst generates performance projections

## Model Assignment
- Research and analysis tasks: qwen3.5:14b (needs reasoning depth)
- Writing and editing tasks: qwen3.5:7b (speed matters more)

Best Use Cases for Qwen 3.5 Agents

Qwen 3.5 excels at specific agent tasks. Here is where it performs best and where you might want to consider alternatives.

Coding Agents

Qwen 3.5 scores 82.3% on HumanEval, making it the strongest local model for code generation. It handles Python, JavaScript, TypeScript, SQL, and shell scripting reliably. DevOps agents that generate scripts, review code, and automate deployment tasks run well on the 7B variant.

Analysis Agents

The 14B variant is excellent for data analysis agents that process structured data, generate reports, and identify patterns. It handles CSV parsing, metric comparisons, and trend analysis well. Pair it with a SOUL.md that specifies output format as markdown tables for best results.

Writing Agents

Qwen 3.5 produces clean, natural prose. For content writing agents that draft blog posts, documentation, and marketing copy, the 7B variant handles first drafts well. The 14B variant produces more nuanced writing with better paragraph transitions and more varied sentence structure.

Planning Agents

Project planning agents benefit from the 14B or 32B variant. Breaking down tasks, estimating effort, identifying dependencies, and creating timelines require reasoning depth that the larger models provide. The 7B variant works for simple task lists but struggles with multi-week project plans.

Where Qwen 3.5 is not the best choice: Long-form creative writing that needs distinctive voice and style (Mistral produces more creative prose at the 7B level). Tasks requiring real-time information beyond the training cutoff (pair with a web search skill or use a cloud model). Complex agent orchestration with 5+ agents in a chain (use the 32B variant or route the orchestrator to a cloud model).

Memory and Context Window Considerations

Qwen 3.5 supports a 32K token context window, which is significantly larger than most local models. This matters for agents that need to maintain conversation history, process documents, or work with large SOUL.md configurations.

ModelContext WindowEffective for Agents
Qwen 3.532,768 tokens~20 conversation turns + SOUL.md
Llama 3.1 8B8,192 tokens~5 conversation turns
Mistral 7B8,192 tokens~5 conversation turns
DeepSeek V3 7B16,384 tokens~10 conversation turns
Claude 3.5 (cloud)200K tokens~120+ conversation turns

The 32K context window gives Qwen 3.5 a practical advantage for agent use cases. A typical SOUL.md file uses 500-1500 tokens. A single agent response uses 200-800 tokens. With 32K tokens available, your agent can maintain 15-20 conversation turns before context starts getting truncated. This is enough for most interactive agent workflows.

Optimize context usage in config.json
{
  "models": {
    "qwen-local": {
      "provider": "ollama",
      "endpoint": "http://localhost:11434",
      "model": "qwen3.5",
      "context_length": 32768,
      "max_tokens": 2048,
      "temperature": 0.7
    }
  },
  "session": {
    "max_history": 20,
    "summarize_after": 15,
    "clear_on_idle": 300
  }
}

Tip: Set summarize_after to trigger session summarization before hitting the context limit. OpenClaw will ask the model to compress previous conversation history into a summary, freeing up tokens for new interactions while preserving important context.

Qwen Next 80: What to Expect

Alibaba has announced Qwen Next 80, an 80B parameter model expected in mid-2026. Based on early technical previews and leaked benchmarks, here is what it means for OpenClaw agent users.

128K context window. Qwen Next 80 is expected to support 128K tokens of context, bringing it much closer to cloud model capabilities. This means agents could process entire documents, maintain much longer conversation histories, and handle complex multi-document analysis tasks locally.

Improved reasoning. Early benchmarks suggest Qwen Next 80 will match or exceed GPT-4o on several reasoning benchmarks. For agent orchestration tasks that currently require a cloud model, the 80B variant could handle them locally, eliminating the need for a hybrid setup in many cases.

Hardware requirements. Running 80B parameters at full precision requires 48+ GB of VRAM. An RTX 4090 (24 GB) could run a quantized version, while an M2 Ultra (192 GB) or dual-GPU setup handles it at full precision. For most users, the 32B variant will remain the practical ceiling until hardware catches up.

The good news: when Qwen Next 80 drops, your OpenClaw configuration stays the same. Pull the new model through Ollama, update the model name in your config, and your agents automatically use the upgraded model. No SOUL.md changes, no agent reconfiguration.

Performance Optimization Tips

Getting the most out of Qwen 3.5 with OpenClaw requires tuning both the Ollama runtime and your agent configuration. Here are practical optimizations that make a measurable difference.

Ollama runtime optimization
# Keep model loaded in memory (prevents cold start delay)
# Set OLLAMA_KEEP_ALIVE to -1 for always-on
export OLLAMA_KEEP_ALIVE=-1

# Increase GPU layers for faster inference (NVIDIA)
export OLLAMA_NUM_GPU=99

# Set number of parallel requests (if running multiple agents)
export OLLAMA_NUM_PARALLEL=4

# Increase context size at the Ollama level
export OLLAMA_CONTEXT_LENGTH=32768

# On macOS, add these to your shell profile (~/.zshrc)
echo 'export OLLAMA_KEEP_ALIVE=-1' >> ~/.zshrc
echo 'export OLLAMA_NUM_PARALLEL=4' >> ~/.zshrc

# Restart Ollama to apply
brew services restart ollama  # macOS
sudo systemctl restart ollama  # Linux

Use Q4_K_M quantization for the best speed/quality balance

Ollama defaults to Q4_K_M quantization, which reduces model size by ~60% with minimal quality loss. For agent tasks like instruction following and structured output, the quality difference between Q4_K_M and full precision is under 2%. Do not use Q2 or Q3 quantization for agent work as they degrade instruction following noticeably.

Keep your SOUL.md under 1000 tokens

Every token in your SOUL.md reduces the context available for conversation. With Qwen 3.5's 32K window, this is less critical than with 8K models, but shorter configs still mean faster first-token latency. Remove redundant rules, merge similar instructions, and keep descriptions concise.

Set max_tokens appropriately per agent role

A support bot that answers FAQs needs max_tokens of 512. A content writer needs 2048. A code generator might need 4096. Setting this correctly prevents the model from generating unnecessarily long responses and speeds up each interaction.

Use session summarization for long-running agents

Enable summarize_after in your OpenClaw config to compress conversation history before it fills the context window. This keeps agents responsive over long sessions without losing important context from earlier interactions.

Related Guides

Frequently Asked Questions

Is Qwen 3.5 free to use with OpenClaw?

Yes. Qwen 3.5 is released under the Apache 2.0 license, which means it is free for both personal and commercial use. When you run it through Ollama on your own hardware, there are zero API costs. The only expense is your electricity and the hardware you already own. This makes it one of the most cost-effective options for running production OpenClaw agents.

How much VRAM does Qwen 3.5 need?

Qwen 3.5 7B requires approximately 5-6 GB of VRAM and runs well on GPUs like the RTX 3060 or Apple M1 with 16 GB unified memory. The 14B variant needs 10-12 GB of VRAM, making it suitable for an RTX 4070 or M2 Pro. The 32B variant requires 20-24 GB and runs best on an RTX 4090 or M2 Ultra. For CPU-only inference, expect 10-30x slower speeds but it still works for low-traffic agents.

Can I use Qwen 3.5 offline with OpenClaw?

Yes. Once you have pulled the Qwen 3.5 model through Ollama, everything runs locally without an internet connection. OpenClaw sends prompts to the Ollama endpoint on localhost:11434, and Qwen processes them entirely on your hardware. This is ideal for air-gapped environments, privacy-sensitive workflows, and situations where you need full control over your data pipeline.

Should I use Qwen 3.5 7B or 14B for OpenClaw agents?

For most agent tasks, the 7B variant provides the best balance of speed and quality. It handles SOUL.md instruction following, structured output, and single-turn tasks extremely well. Choose the 14B variant if your agents need to handle complex multi-step reasoning, longer context windows, or nuanced writing tasks. The 14B model is noticeably better at maintaining coherence across long conversations and following intricate rule sets in your SOUL.md.

How does Qwen 3.5 compare to Claude or GPT-4o for agents?

Qwen 3.5 handles routine agent tasks surprisingly well, often matching cloud models for structured responses, SOUL.md rule following, and single-turn Q&A. Where cloud models still have a clear edge is in complex multi-step reasoning chains, very long context windows (200K tokens for Claude vs 32K for Qwen), and nuanced decision-making. The hybrid approach works best: use Qwen 3.5 for high-volume routine tasks and route complex reasoning to a cloud model.

What is Qwen Next 80 and when is it available?

Qwen Next 80 is the upcoming 80B parameter model from Alibaba's Qwen team, expected in mid-2026. Early benchmarks suggest it will close the gap further between local and cloud model quality, particularly for complex reasoning and long-context tasks. When released, it will be available through Ollama and compatible with OpenClaw's existing Ollama configuration. You will need 48+ GB of VRAM to run it at full precision.

Can I switch between Qwen and a cloud model without changing my SOUL.md?

Yes. The SOUL.md file defines your agent's identity, rules, and behavior. It is completely independent of the model provider. You configure the model provider in OpenClaw's config.json file. This means you can develop and test with Qwen 3.5 locally, then deploy the same agent with Claude or GPT-4o in production, without modifying your agent configuration at all.

Build Qwen-Powered Agent Configs in Seconds

Use the CrewClaw generator to create SOUL.md configs optimized for Qwen 3.5. Pick a role, customize the rules, and download a complete package with Ollama provider config included.

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