diff --git a/src/public/app/widgets/llm_chat_panel.ts b/src/public/app/widgets/llm_chat_panel.ts
index 4c9eb5c4d..aaedb1d21 100644
--- a/src/public/app/widgets/llm_chat_panel.ts
+++ b/src/public/app/widgets/llm_chat_panel.ts
@@ -757,9 +757,6 @@ export default class LlmChatPanel extends BasicWidget {
                 return;
             }
 
-            // Get the default embedding provider
-            const defaultProvider = options.get('embeddingsDefaultProvider') || 'openai';
-
             // Get provider precedence
             const precedenceStr = options.get('aiProviderPrecedence') || 'openai,anthropic,ollama';
             let precedenceList: string[] = [];
@@ -800,8 +797,6 @@ export default class LlmChatPanel extends BasicWidget {
             enabledProviders.push('local');
 
             // Perform validation checks
-            const defaultInPrecedence = precedenceList.includes(defaultProvider);
-            const defaultIsEnabled = enabledProviders.includes(defaultProvider);
             const allPrecedenceEnabled = precedenceList.every((p: string) => enabledProviders.includes(p));
 
             // Get embedding queue status
@@ -820,19 +815,11 @@ export default class LlmChatPanel extends BasicWidget {
             const hasEmbeddingsInQueue = queuedNotes > 0;
 
             // Show warning if there are issues
-            if (!defaultInPrecedence || !defaultIsEnabled || !allPrecedenceEnabled || hasEmbeddingsInQueue) {
+            if (!allPrecedenceEnabled || hasEmbeddingsInQueue) {
                 let message = '<i class="bx bx-error-circle me-2"></i><strong>AI Provider Configuration Issues</strong>';
 
                 message += '<ul class="mb-1 ps-4">';
 
-                if (!defaultInPrecedence) {
-                    message += `<li>The default embedding provider "${defaultProvider}" is not in your provider precedence list.</li>`;
-                }
-
-                if (!defaultIsEnabled) {
-                    message += `<li>The default embedding provider "${defaultProvider}" is not enabled.</li>`;
-                }
-
                 if (!allPrecedenceEnabled) {
                     const disabledProviders = precedenceList.filter((p: string) => !enabledProviders.includes(p));
                     message += `<li>The following providers in your precedence list are not enabled: ${disabledProviders.join(', ')}.</li>`;
diff --git a/src/public/app/widgets/type_widgets/options/ai_settings/ai_settings_widget.ts b/src/public/app/widgets/type_widgets/options/ai_settings/ai_settings_widget.ts
index aa5e35f28..9df6e4d1a 100644
--- a/src/public/app/widgets/type_widgets/options/ai_settings/ai_settings_widget.ts
+++ b/src/public/app/widgets/type_widgets/options/ai_settings/ai_settings_widget.ts
@@ -132,9 +132,8 @@ export default class AiSettingsWidget extends OptionsWidget {
         this.setupChangeHandler('.enable-automatic-indexing', 'enableAutomaticIndexing', false, true);
         this.setupChangeHandler('.embedding-similarity-threshold', 'embeddingSimilarityThreshold');
         this.setupChangeHandler('.max-notes-per-llm-query', 'maxNotesPerLlmQuery');
-        this.setupChangeHandler('.embedding-default-provider', 'embeddingsDefaultProvider', true);
-        this.setupChangeHandler('.embedding-dimension-strategy', 'embeddingDimensionStrategy');
         this.setupChangeHandler('.embedding-provider-precedence', 'embeddingProviderPrecedence', true);
+        this.setupChangeHandler('.embedding-dimension-strategy', 'embeddingDimensionStrategy');
 
         // No sortable behavior needed anymore
 
@@ -504,4 +503,4 @@ export default class AiSettingsWidget extends OptionsWidget {
             this.indexRebuildRefreshInterval = null;
         }
     }
-}
\ No newline at end of file
+}
diff --git a/src/routes/api/options.ts b/src/routes/api/options.ts
index 6fdd32d12..bbb351f25 100644
--- a/src/routes/api/options.ts
+++ b/src/routes/api/options.ts
@@ -83,36 +83,32 @@ const ALLOWED_OPTIONS = new Set<OptionNames>([
 
     // AI/LLM integration options
     "aiEnabled",
+    "aiTemperature",
+    "aiSystemPrompt",
+    "aiProviderPrecedence",
     "openaiApiKey",
+    "openaiBaseUrl",
     "openaiDefaultModel",
     "openaiEmbeddingModel",
-    "openaiBaseUrl",
     "anthropicApiKey",
-    "anthropicDefaultModel",
-    "voyageEmbeddingModel",
-    "voyageApiKey",
     "anthropicBaseUrl",
-    "ollamaEnabled",
+    "anthropicDefaultModel",
+    "voyageApiKey",
+    "voyageEmbeddingModel",
     "ollamaBaseUrl",
     "ollamaDefaultModel",
     "ollamaEmbeddingModel",
-    "aiProviderPrecedence",
-    "aiTemperature",
-    "aiSystemPrompt",
-
-    // Embedding options
     "embeddingAutoUpdateEnabled",
-    "embeddingBatchSize",
-    "embeddingUpdateInterval",
-    "embeddingDefaultDimension",
-    "embeddingsDefaultProvider",
+    "embeddingDimensionStrategy",
     "embeddingProviderPrecedence",
     "embeddingSimilarityThreshold",
-    "maxNotesPerLlmQuery",
+    "embeddingBatchSize",
+    "embeddingUpdateInterval",
     "enableAutomaticIndexing",
-    "embeddingGenerationLocation",
-    "embeddingDimensionStrategy",
-    "splitEditorOrientation",
+    "maxNotesPerLlmQuery",
+
+    // Embedding options
+    "embeddingDefaultDimension",
     "mfaEnabled",
     "mfaMethod"
 ]);
diff --git a/src/services/llm/ai_service_manager.ts b/src/services/llm/ai_service_manager.ts
index d0cb3fb68..d7ee0d3b2 100644
--- a/src/services/llm/ai_service_manager.ts
+++ b/src/services/llm/ai_service_manager.ts
@@ -115,9 +115,6 @@ export class AIServiceManager implements IAIServiceManager {
                 return null;
             }
 
-            // Get default embedding provider
-            const defaultProviderName = await options.getOption('embeddingsDefaultProvider') || 'openai';
-
             // Parse provider precedence list (similar to updateProviderOrder)
             let precedenceList: string[] = [];
             const precedenceOption = await options.getOption('aiProviderPrecedence');
@@ -138,28 +135,14 @@ export class AIServiceManager implements IAIServiceManager {
             const enabledProviders = await getEnabledEmbeddingProviders();
             const enabledProviderNames = enabledProviders.map(p => p.name);
 
-            // Check if default provider is in precedence list
-            const defaultInPrecedence = precedenceList.includes(defaultProviderName);
-
-            // Check if default provider is enabled
-            const defaultIsEnabled = enabledProviderNames.includes(defaultProviderName);
-
             // Check if all providers in precedence list are enabled
             const allPrecedenceEnabled = precedenceList.every(p =>
                 enabledProviderNames.includes(p) || p === 'local');
 
             // Return warning message if there are issues
-            if (!defaultInPrecedence || !defaultIsEnabled || !allPrecedenceEnabled) {
+            if (!allPrecedenceEnabled) {
                 let message = 'There are issues with your AI provider configuration:';
 
-                if (!defaultInPrecedence) {
-                    message += `\n• The default embedding provider "${defaultProviderName}" is not in your provider precedence list.`;
-                }
-
-                if (!defaultIsEnabled) {
-                    message += `\n• The default embedding provider "${defaultProviderName}" is not enabled.`;
-                }
-
                 if (!allPrecedenceEnabled) {
                     const disabledProviders = precedenceList.filter(p =>
                         !enabledProviderNames.includes(p) && p !== 'local');
@@ -354,7 +337,21 @@ export class AIServiceManager implements IAIServiceManager {
                 return;
             }
 
-            const preferredProvider = options.getOption('embeddingsDefaultProvider') || 'openai';
+            // Get provider precedence list
+            const precedenceOption = await options.getOption('embeddingProviderPrecedence');
+            let precedenceList: string[] = [];
+
+            if (precedenceOption) {
+                if (precedenceOption.startsWith('[') && precedenceOption.endsWith(']')) {
+                    precedenceList = JSON.parse(precedenceOption);
+                } else if (typeof precedenceOption === 'string') {
+                    if (precedenceOption.includes(',')) {
+                        precedenceList = precedenceOption.split(',').map(p => p.trim());
+                    } else {
+                        precedenceList = [precedenceOption];
+                    }
+                }
+            }
 
             // Check if we have enabled providers
             const enabledProviders = await getEnabledEmbeddingProviders();
@@ -364,13 +361,6 @@ export class AIServiceManager implements IAIServiceManager {
                 return;
             }
 
-            // Validate that preferred provider is enabled
-            const isPreferredEnabled = enabledProviders.some(p => p.name === preferredProvider);
-
-            if (!isPreferredEnabled) {
-                log.info(`Preferred provider "${preferredProvider}" is not enabled. Using first available.`);
-            }
-
             // Initialize embedding providers
             log.info('Embedding providers initialized successfully');
         } catch (error: any) {
diff --git a/src/services/llm/context/modules/provider_manager.ts b/src/services/llm/context/modules/provider_manager.ts
index aac24c7b4..8030e3592 100644
--- a/src/services/llm/context/modules/provider_manager.ts
+++ b/src/services/llm/context/modules/provider_manager.ts
@@ -20,44 +20,32 @@ export class ProviderManager {
      */
     async getPreferredEmbeddingProvider(): Promise<any> {
         try {
-            // First try user's configured default provider
-            const providerId = await options.getOption('embeddingsDefaultProvider');
-            if (providerId) {
+            // Try to get providers based on precedence list
+            const precedenceOption = await options.getOption('embeddingProviderPrecedence');
+            let precedenceList: string[] = [];
+
+            if (precedenceOption) {
+                if (precedenceOption.startsWith('[') && precedenceOption.endsWith(']')) {
+                    precedenceList = JSON.parse(precedenceOption);
+                } else if (typeof precedenceOption === 'string') {
+                    if (precedenceOption.includes(',')) {
+                        precedenceList = precedenceOption.split(',').map(p => p.trim());
+                    } else {
+                        precedenceList = [precedenceOption];
+                    }
+                }
+            }
+
+            // Try each provider in the precedence list
+            for (const providerId of precedenceList) {
                 const provider = await getEmbeddingProvider(providerId);
                 if (provider) {
-                    log.info(`Using configured embedding provider: ${providerId}`);
+                    log.info(`Using embedding provider from precedence list: ${providerId}`);
                     return provider;
                 }
             }
 
-            // Then try OpenAI
-            const openaiKey = await options.getOption('openaiApiKey');
-            if (openaiKey) {
-                const provider = await getEmbeddingProvider('openai');
-                if (provider) {
-                    log.info('Using OpenAI embeddings provider');
-                    return provider;
-                }
-            }
-
-            // Try Anthropic
-            const anthropicKey = await options.getOption('anthropicApiKey');
-            if (anthropicKey) {
-                const provider = await getEmbeddingProvider('anthropic');
-                if (provider) {
-                    log.info('Using Anthropic embeddings provider');
-                    return provider;
-                }
-            }
-
-            // Try Ollama
-            const provider = await getEmbeddingProvider('ollama');
-            if (provider) {
-                log.info('Using Ollama embeddings provider');
-                return provider;
-            }
-
-            // If no preferred providers, get any enabled provider
+            // If no provider from precedence list is available, try any enabled provider
             const providers = await getEnabledEmbeddingProviders();
             if (providers.length > 0) {
                 log.info(`Using available embedding provider: ${providers[0].name}`);
diff --git a/src/services/options_init.ts b/src/services/options_init.ts
index 6262ece2b..1070e7887 100644
--- a/src/services/options_init.ts
+++ b/src/services/options_init.ts
@@ -197,12 +197,11 @@ const defaultOptions: DefaultOption[] = [
     { name: "aiTemperature", value: "0.7", isSynced: true },
     { name: "aiSystemPrompt", value: "", isSynced: true },
     { name: "aiProviderPrecedence", value: "openai,anthropic,ollama", isSynced: true },
-    { name: "embeddingsDefaultProvider", value: "openai", isSynced: true },
-    { name: "embeddingProviderPrecedence", value: "openai,voyage,ollama", isSynced: true },
-    { name: "embeddingDimensionStrategy", value: "native", isSynced: true },
+    { name: "embeddingDimensionStrategy", value: "auto", isSynced: true },
+    { name: "embeddingProviderPrecedence", value: "openai,voyage,ollama,local", isSynced: true },
+    { name: "embeddingSimilarityThreshold", value: "0.75", isSynced: true },
     { name: "enableAutomaticIndexing", value: "true", isSynced: true },
-    { name: "embeddingSimilarityThreshold", value: "0.65", isSynced: true },
-    { name: "maxNotesPerLlmQuery", value: "10", isSynced: true },
+    { name: "maxNotesPerLlmQuery", value: "3", isSynced: true },
     { name: "embeddingBatchSize", value: "10", isSynced: true },
     { name: "embeddingUpdateInterval", value: "5000", isSynced: true },
     { name: "embeddingDefaultDimension", value: "1536", isSynced: true },