diff --git a/core/config/profile/LocalProfileLoader.ts b/core/config/profile/LocalProfileLoader.ts
index d72e8c4cebb..94c08b28f29 100644
--- a/core/config/profile/LocalProfileLoader.ts
+++ b/core/config/profile/LocalProfileLoader.ts
@@ -1,4 +1,5 @@
 import { ConfigResult } from "@continuedev/config-yaml";
+import * as YAML from "yaml";
 
 import { ControlPlaneClient } from "../../control-plane/client.js";
 import { ContinueConfig, IDE, ILLMLogger } from "../../index.js";
@@ -10,6 +11,26 @@ import { getUriPathBasename } from "../../util/uri.js";
 import doLoadConfig from "./doLoadConfig.js";
 import { IProfileLoader } from "./IProfileLoader.js";
 
+function getDisplayTitle(overrideAssistantFile?: {
+  path: string;
+  content: string;
+}) {
+  if (!overrideAssistantFile?.path) {
+    return "Local Config";
+  }
+
+  try {
+    const parsed = YAML.parse(overrideAssistantFile.content);
+    if (typeof parsed?.name === "string" && parsed.name.trim()) {
+      return parsed.name;
+    }
+  } catch {
+    // Invalid YAML is handled during config loading; keep the selector usable.
+  }
+
+  return getUriPathBasename(overrideAssistantFile.path);
+}
+
 export default class LocalProfileLoader implements IProfileLoader {
   static ID = "local";
 
@@ -32,9 +53,7 @@ export default class LocalProfileLoader implements IProfileLoader {
         versionSlug: "",
       },
       iconUrl: "",
-      title: overrideAssistantFile?.path
-        ? getUriPathBasename(overrideAssistantFile.path)
-        : "Local Config",
+      title: getDisplayTitle(overrideAssistantFile),
       errors: undefined,
       uri:
         overrideAssistantFile?.path ??
diff --git a/core/config/profile/LocalProfileLoader.vitest.ts b/core/config/profile/LocalProfileLoader.vitest.ts
index 7fdf3d18836..60b14113b5f 100644
--- a/core/config/profile/LocalProfileLoader.vitest.ts
+++ b/core/config/profile/LocalProfileLoader.vitest.ts
@@ -49,6 +49,38 @@ describe("LocalProfileLoader", () => {
     );
   });
 
+  it("should initialize override file title from config name", () => {
+    const overrideFile = {
+      path: "file:///workspace/.continue/agents/example.yaml",
+      content: "name: My Custom Config\nversion: 1.0.0\nschema: v1\n",
+    };
+
+    const loader = new LocalProfileLoader(
+      testIde,
+      controlPlaneClient,
+      llmLogger,
+      overrideFile,
+    );
+
+    expect(loader.description.title).toBe("My Custom Config");
+  });
+
+  it("should fall back to filename when override file has no config name", () => {
+    const overrideFile = {
+      path: "file:///workspace/.continue/agents/example.yaml",
+      content: "version: 1.0.0\nschema: v1\n",
+    };
+
+    const loader = new LocalProfileLoader(
+      testIde,
+      controlPlaneClient,
+      llmLogger,
+      overrideFile,
+    );
+
+    expect(loader.description.title).toBe("example.yaml");
+  });
+
   it("should not include content in packageIdentifier when no override file", async () => {
     const loader = new LocalProfileLoader(
       testIde,