diff --git a/desktop/src/features/communities/ui/AddCommunityDialog.tsx b/desktop/src/features/communities/ui/AddCommunityDialog.tsx
index a83456652..108ba4c35 100644
--- a/desktop/src/features/communities/ui/AddCommunityDialog.tsx
+++ b/desktop/src/features/communities/ui/AddCommunityDialog.tsx
@@ -2,6 +2,12 @@ import * as React from "react";
 import { ArrowLeft, ChevronRight, Link2, Plus } from "lucide-react";
 
 import type { AddCommunityPrefillRequest } from "@/features/communities/addCommunityPrefill";
+import {
+  LOCAL_COMMUNITY_NAME,
+  LOCAL_COMMUNITY_RELAY_URL,
+} from "@/features/communities/communityStorage";
+import { useCommunities } from "@/features/communities/useCommunities";
+import { CommunityCreationChoice } from "@/features/communities/ui/CommunityCreationChoice";
 import { HostedCommunityCreateFlow } from "@/features/communities/ui/HostedCommunityCreateFlow";
 import { useCommunityOnboarding } from "@/features/onboarding/communityOnboarding";
 import { InviteRedeemForm } from "@/features/onboarding/ui/InviteRedeemForm";
@@ -22,7 +28,7 @@ type AddCommunityDialogProps = {
   onOpenChange: (open: boolean) => void;
 };
 
-type AddCommunityMode = "choose" | "create" | "join";
+type AddCommunityMode = "choose" | "create-choose" | "create-hosted" | "join";
 
 const OPTION_CLASS =
   "flex w-full items-center gap-3 rounded-xl border border-border/70 bg-muted/30 px-4 py-4 text-left transition-colors duration-150 ease-out hover:bg-muted/60 focus-visible:outline-hidden focus-visible:ring-1 focus-visible:ring-ring";
@@ -33,6 +39,8 @@ export function AddCommunityDialog({
   onOpenChange,
 }: AddCommunityDialogProps) {
   const communityOnboarding = useCommunityOnboarding();
+  const { communities } = useCommunities();
+  const hasLocalCommunity = communities.some((community) => community.local);
   const [mode, setMode] = React.useState<AddCommunityMode>("choose");
   const [joinError, setJoinError] = React.useState<string | null>(null);
   const appliedPrefillId = React.useRef<string | null>(null);
@@ -78,19 +86,38 @@ export function AddCommunityDialog({
     [communityOnboarding, handleClose, prefill?.name],
   );
 
+  const startLocalCommunity = React.useCallback(() => {
+    const started = communityOnboarding.start({
+      source: "add-community",
+      communityName: LOCAL_COMMUNITY_NAME,
+      relayUrl: LOCAL_COMMUNITY_RELAY_URL,
+    });
+    if (!started) {
+      setJoinError(
+        "Finish connecting the community already in progress, then try again.",
+      );
+      return;
+    }
+    handleClose();
+  }, [communityOnboarding, handleClose]);
+
   const title =
-    mode === "create"
+    mode === "create-choose"
       ? "Create a new community"
-      : mode === "join"
-        ? "Join an existing community"
-        : "Add community";
+      : mode === "create-hosted"
+        ? "Host a community online"
+        : mode === "join"
+          ? "Join an existing community"
+          : "Add community";
 
   const description =
-    mode === "create"
-      ? "Opens Builderlab in your browser."
-      : mode === "join"
-        ? "Use the community URL or invite link you received."
-        : "Create a new community or join one you already have.";
+    mode === "create-choose"
+      ? "Choose where your community will live."
+      : mode === "create-hosted"
+        ? "Opens Builderlab in your browser."
+        : mode === "join"
+          ? "Use the community URL or invite link you received."
+          : "Create a new community or join one you already have.";
 
   return (
     <Dialog
@@ -123,7 +150,7 @@ export function AddCommunityDialog({
             <DialogTitle className="truncate">{title}</DialogTitle>
           </div>
           <DialogDescription
-            className={mode === "create" ? "sr-only" : undefined}
+            className={mode === "create-hosted" ? "sr-only" : undefined}
           >
             {description}
           </DialogDescription>
@@ -135,7 +162,7 @@ export function AddCommunityDialog({
               <button
                 className={OPTION_CLASS}
                 data-testid="add-community-create"
-                onClick={() => setMode("create")}
+                onClick={() => setMode("create-choose")}
                 type="button"
               >
                 <span className="flex h-9 w-9 shrink-0 items-center justify-center rounded-lg bg-primary/10 text-primary">
@@ -188,6 +215,13 @@ export function AddCommunityDialog({
               }
               variant="add-community"
             />
+          ) : mode === "create-choose" ? (
+            <CommunityCreationChoice
+              hasLocalCommunity={hasLocalCommunity}
+              onChooseHosted={() => setMode("create-hosted")}
+              onChooseLocal={startLocalCommunity}
+              variant="dialog"
+            />
           ) : (
             <HostedCommunityCreateFlow onComplete={handleClose} />
           )}
diff --git a/desktop/src/features/communities/ui/CommunityCreationChoice.tsx b/desktop/src/features/communities/ui/CommunityCreationChoice.tsx
new file mode 100644
index 000000000..307db6958
--- /dev/null
+++ b/desktop/src/features/communities/ui/CommunityCreationChoice.tsx
@@ -0,0 +1,105 @@
+import { ChevronRight, Cloud, Laptop } from "lucide-react";
+
+import { Card } from "@/shared/ui/card";
+
+const LOCAL_DESCRIPTION =
+  "Private to this Mac. Only you can use it — nothing is shared online, no one can join, and other devices can't see it. Your agents still work.";
+const HOSTED_DESCRIPTION =
+  "Claim a Buzz address so your team can join from anywhere. Opens Builderlab.";
+
+const ONBOARDING_OPTION_CLASS =
+  "w-full max-w-[440px] px-6 py-5 text-left text-foreground transition-[filter] duration-150 ease-out hover:brightness-[0.98] focus-visible:outline-hidden focus-visible:ring-2 focus-visible:ring-foreground/35";
+const DIALOG_OPTION_CLASS =
+  "flex w-full items-center gap-3 rounded-xl border border-border/70 bg-muted/30 px-4 py-4 text-left transition-colors duration-150 ease-out hover:bg-muted/60 focus-visible:outline-hidden focus-visible:ring-1 focus-visible:ring-ring";
+
+type CommunityCreationChoiceProps = {
+  hasLocalCommunity?: boolean;
+  onChooseHosted: () => void;
+  onChooseLocal: () => void;
+  variant: "onboarding" | "dialog";
+};
+
+export function CommunityCreationChoice({
+  hasLocalCommunity = false,
+  onChooseHosted,
+  onChooseLocal,
+  variant,
+}: CommunityCreationChoiceProps) {
+  const localLabel = hasLocalCommunity
+    ? "Open your on-this-device community"
+    : "Keep it on this device";
+
+  if (variant === "onboarding") {
+    return (
+      <div className="flex w-full flex-col items-center gap-5">
+        <Card asChild className={ONBOARDING_OPTION_CLASS} variant="textured">
+          <button
+            data-testid="community-create-hosted"
+            onClick={onChooseHosted}
+            type="button"
+          >
+            <span className="block text-sm font-medium">Host it online</span>
+            <span className="mt-1 block text-xs leading-5 text-foreground/70">
+              {HOSTED_DESCRIPTION}
+            </span>
+          </button>
+        </Card>
+        <Card asChild className={ONBOARDING_OPTION_CLASS} variant="textured">
+          <button
+            data-testid="community-choice-local"
+            onClick={onChooseLocal}
+            type="button"
+          >
+            <span className="block text-sm font-medium">{localLabel}</span>
+            <span className="mt-1 block text-xs leading-5 text-foreground/70">
+              {LOCAL_DESCRIPTION}
+            </span>
+          </button>
+        </Card>
+      </div>
+    );
+  }
+
+  return (
+    <div className="space-y-3">
+      <button
+        className={DIALOG_OPTION_CLASS}
+        data-testid="community-create-hosted"
+        onClick={onChooseHosted}
+        type="button"
+      >
+        <span className="flex h-9 w-9 shrink-0 items-center justify-center rounded-lg bg-primary/10 text-primary">
+          <Cloud className="h-4 w-4" />
+        </span>
+        <span className="min-w-0 flex-1">
+          <span className="block text-sm font-medium text-foreground">
+            Host it online
+          </span>
+          <span className="mt-0.5 block text-xs leading-5 text-muted-foreground">
+            {HOSTED_DESCRIPTION}
+          </span>
+        </span>
+        <ChevronRight className="h-4 w-4 shrink-0 text-muted-foreground/60" />
+      </button>
+      <button
+        className={DIALOG_OPTION_CLASS}
+        data-testid="community-choice-local"
+        onClick={onChooseLocal}
+        type="button"
+      >
+        <span className="flex h-9 w-9 shrink-0 items-center justify-center rounded-lg bg-primary/10 text-primary">
+          <Laptop className="h-4 w-4" />
+        </span>
+        <span className="min-w-0 flex-1">
+          <span className="block text-sm font-medium text-foreground">
+            {localLabel}
+          </span>
+          <span className="mt-0.5 block text-xs leading-5 text-muted-foreground">
+            {LOCAL_DESCRIPTION}
+          </span>
+        </span>
+        <ChevronRight className="h-4 w-4 shrink-0 text-muted-foreground/60" />
+      </button>
+    </div>
+  );
+}
diff --git a/desktop/src/features/communities/ui/WelcomeSetup.tsx b/desktop/src/features/communities/ui/WelcomeSetup.tsx
index 21859c653..e309b2767 100644
--- a/desktop/src/features/communities/ui/WelcomeSetup.tsx
+++ b/desktop/src/features/communities/ui/WelcomeSetup.tsx
@@ -5,6 +5,7 @@ import {
   LOCAL_COMMUNITY_NAME,
   LOCAL_COMMUNITY_RELAY_URL,
 } from "@/features/communities/communityStorage";
+import { CommunityCreationChoice } from "@/features/communities/ui/CommunityCreationChoice";
 import { HostedCommunityOnboarding } from "@/features/communities/ui/HostedCommunityOnboarding";
 import { useCommunityOnboarding } from "@/features/onboarding/communityOnboarding";
 import { InviteRedeemForm } from "@/features/onboarding/ui/InviteRedeemForm";
@@ -25,7 +26,13 @@ import { Button } from "@/shared/ui/button";
 import { Card } from "@/shared/ui/card";
 import { StartupWindowDragRegion } from "@/shared/ui/StartupWindowDragRegion";
 
-type WelcomeSetupPage = "welcome" | "existing" | "join" | "member" | "owned";
+type WelcomeSetupPage =
+  | "welcome"
+  | "create"
+  | "existing"
+  | "join"
+  | "member"
+  | "owned";
 type WelcomeTransitionMode = "initial" | OnboardingTransitionDirection;
 
 type WelcomeSetupProps = {
@@ -137,19 +144,6 @@ export function WelcomeSetup({
                 </p>
               </div>
               <div className="flex w-full flex-1 translate-y-16 flex-col items-center justify-center gap-20 py-8">
-                <Card
-                  asChild
-                  className={COMMUNITY_OPTION_CARD_CLASS}
-                  variant="textured"
-                >
-                  <button
-                    data-testid="community-choice-local"
-                    onClick={startLocalCommunity}
-                    type="button"
-                  >
-                    Use this device
-                  </button>
-                </Card>
                 <Card
                   asChild
                   className={COMMUNITY_OPTION_CARD_CLASS}
@@ -170,7 +164,7 @@ export function WelcomeSetup({
                 >
                   <button
                     data-testid="community-choice-create"
-                    onClick={() => setIsHostedSignInOpen(true)}
+                    onClick={() => showPage("create")}
                     type="button"
                   >
                     Create a community
@@ -204,6 +198,38 @@ export function WelcomeSetup({
                 </OnboardingFooter>
               ) : null}
             </OnboardingSlideTransition>
+          ) : page === "create" ? (
+            <OnboardingSlideTransition
+              className="flex h-full min-h-0 w-full flex-col items-center text-center"
+              containerClassName="h-full min-h-0 [&>.buzz-onboarding-transition-line]:h-full"
+              direction={transitionDirection}
+              transitionKey={`create-${transitionDirection}`}
+            >
+              <div className="w-full max-w-[760px]">
+                <h1 className="text-title font-normal">Create a community</h1>
+                <p className="mt-3 text-sm leading-6 text-foreground/80">
+                  Choose where your community will live.
+                </p>
+              </div>
+              <div className="flex w-full flex-1 items-center justify-center py-8">
+                <CommunityCreationChoice
+                  onChooseHosted={() => setIsHostedSignInOpen(true)}
+                  onChooseLocal={startLocalCommunity}
+                  variant="onboarding"
+                />
+              </div>
+              <OnboardingFooter>
+                <Button
+                  className="h-9 rounded-full bg-foreground/10 px-6 hover:bg-foreground/15"
+                  data-testid="community-create-back"
+                  onClick={() => showPage("welcome")}
+                  type="button"
+                  variant="ghost"
+                >
+                  Back
+                </Button>
+              </OnboardingFooter>
+            </OnboardingSlideTransition>
           ) : page === "existing" ? (
             <OnboardingSlideTransition
               className="flex h-full min-h-0 w-full flex-col items-center text-center"
diff --git a/desktop/tests/e2e/add-community-screenshots.spec.ts b/desktop/tests/e2e/add-community-screenshots.spec.ts
index 389e182e7..94150a77c 100644
--- a/desktop/tests/e2e/add-community-screenshots.spec.ts
+++ b/desktop/tests/e2e/add-community-screenshots.spec.ts
@@ -66,6 +66,7 @@ test("capture: join an existing community", async ({ page }) => {
 
 test("capture: create a new community", async ({ page }) => {
   await page.getByTestId("add-community-create").click();
+  await page.getByTestId("community-create-hosted").click();
   const dialog = page.getByTestId("add-community-dialog");
   await page.getByLabel("Community address").waitFor();
   await waitForAnimations(page);
diff --git a/desktop/tests/e2e/onboarding.spec.ts b/desktop/tests/e2e/onboarding.spec.ts
index 403edbcda..3f5733b2e 100644
--- a/desktop/tests/e2e/onboarding.spec.ts
+++ b/desktop/tests/e2e/onboarding.spec.ts
@@ -1087,6 +1087,15 @@ test("first-community choices route join, create, owner, and member intents", as
   await expect(
     page.getByRole("button", { name: /Create a community/ }),
   ).toBeVisible();
+  await expect(page.getByTestId("community-choice-local")).toHaveCount(0);
+  await page.getByTestId("community-choice-create").click();
+  await expect(page.getByTestId("community-create-hosted")).toContainText(
+    "Host it online",
+  );
+  await expect(page.getByTestId("community-choice-local")).toContainText(
+    "Keep it on this device",
+  );
+  await page.getByTestId("community-create-back").click();
   const existing = page.getByRole("button", {
     name: /I already have a community/,
   });
@@ -1169,6 +1178,7 @@ test("first-community owner can connect an existing hosted community", async ({
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await expect(page.getByText("North Star")).toBeVisible();
   await page.getByRole("button", { name: "Connect", exact: true }).click();
   await expect(
@@ -1227,6 +1237,7 @@ test("first-community owner can create and connect a hosted community", async ({
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await page.getByRole("button", { name: "Sign in to continue" }).click();
   await expect(
     page.getByRole("heading", { name: "Finish connecting Buzz" }),
@@ -1303,6 +1314,7 @@ test("hosted community address line stays within the card for a long name", asyn
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await page.getByRole("button", { name: "Sign in to continue" }).click();
   await expect(
     page.getByRole("heading", { name: "Finish connecting Buzz" }),
@@ -1372,6 +1384,7 @@ test("first-community reports a created community without a relay address", asyn
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await page.getByRole("textbox", { name: "Community name" }).fill("bee-lab");
   await expect(page.getByText("That address is available.")).toBeVisible();
   await page.getByRole("button", { name: "Next" }).click();
@@ -1403,6 +1416,7 @@ test("first-community X cancels a pending sign-in", async ({ page }) => {
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await page.getByRole("button", { name: "Sign in to continue" }).click();
   await expect(page.getByText("Waiting for your browser…")).toBeVisible();
   await expect(
@@ -1410,8 +1424,9 @@ test("first-community X cancels a pending sign-in", async ({ page }) => {
   ).toHaveCount(0);
   await page.getByRole("button", { name: "Close" }).click();
   await expect(
-    page.getByRole("button", { name: /Create a community/ }),
+    page.getByRole("heading", { name: "Create a community" }),
   ).toBeVisible();
+  await expect(page.getByTestId("community-create-hosted")).toBeVisible();
   await expect
     .poll(() => page.evaluate(() => window.__BUZZ_E2E_COMMANDS__ ?? []))
     .toEqual(expect.arrayContaining(["cancel_builderlab_login"]));
@@ -1445,6 +1460,7 @@ test("first-community owner can replace a mismatched account identity", async ({
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await expect(
     page.getByRole("heading", {
       name: "This account uses a different Buzz identity",
@@ -1495,6 +1511,7 @@ test("first-community explains when the local identity belongs to another accoun
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await page
     .getByRole("button", { name: "Use this device's identity" })
     .click();
@@ -1536,8 +1553,10 @@ test("back clears Builderlab auth before returning to first-community choices",
   await page.goto("/");
 
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await page.getByRole("button", { name: "Back" }).click();
   await page.getByTestId("community-choice-create").click();
+  await page.getByTestId("community-create-hosted").click();
   await expect(page.getByRole("button", { name: "Continue" })).toBeVisible();
 });
 
diff --git a/desktop/tests/e2e/sidebar.spec.ts b/desktop/tests/e2e/sidebar.spec.ts
index 9dce5e759..be97ba4e0 100644
--- a/desktop/tests/e2e/sidebar.spec.ts
+++ b/desktop/tests/e2e/sidebar.spec.ts
@@ -103,11 +103,105 @@ test("add community starts with create and join choices", async ({ page }) => {
   await expect(
     page.getByRole("heading", { name: "Create a new community" }),
   ).toBeVisible();
+  await expect(page.getByTestId("community-create-hosted")).toContainText(
+    "Host it online",
+  );
+  await expect(page.getByTestId("community-choice-local")).toContainText(
+    "Keep it on this device",
+  );
+  await page.getByTestId("community-create-hosted").click();
   await page.getByRole("button", { name: "Continue to Builderlab" }).click();
   await page.getByRole("button", { name: "Connect and continue" }).click();
   await expect(page.getByLabel("Community address")).toBeVisible();
 });
 
+test("add community can start an on-this-device community", async ({
+  page,
+}) => {
+  await installMockBridge(page, { applyCommunityDelayMs: 1_000 });
+  await page.goto("/");
+
+  await openAddCommunityDialog(page);
+  await page.getByTestId("add-community-create").click();
+  await page.getByTestId("community-choice-local").click();
+
+  await expect
+    .poll(() =>
+      page.evaluate((key) => {
+        const raw = window.localStorage.getItem(key);
+        if (!raw) return null;
+        const transaction = JSON.parse(raw) as {
+          source?: string;
+          communityName?: string;
+          relayUrl?: string;
+        };
+        return {
+          source: transaction.source,
+          communityName: transaction.communityName,
+          relayUrl: transaction.relayUrl,
+        };
+      }, COMMUNITY_ONBOARDING_STORAGE_KEY),
+    )
+    .toEqual({
+      source: "add-community",
+      communityName: "On this device",
+      relayUrl: "buzz-local://on-this-device",
+    });
+});
+
+test("create choice offers to open an existing on-this-device community", async ({
+  page,
+}) => {
+  await page.addInitScript(() => {
+    const communities = [
+      {
+        id: "hosted",
+        name: "Hosted",
+        relayUrl: "wss://hosted.example.com",
+        addedAt: "2026-01-01T00:00:00.000Z",
+      },
+      {
+        id: "local",
+        name: "On this device",
+        relayUrl: "buzz-local://on-this-device",
+        local: true,
+        addedAt: "2026-01-02T00:00:00.000Z",
+      },
+    ];
+    window.localStorage.setItem(
+      "buzz-communities",
+      JSON.stringify(communities),
+    );
+    window.localStorage.setItem("buzz-active-community-id", "hosted");
+  });
+  await installMockBridge(
+    page,
+    { applyCommunityDelayMs: 1_000 },
+    { skipCommunitySeed: true },
+  );
+  await page.goto("/");
+
+  await openAddCommunityDialog(page);
+  await page.getByTestId("add-community-create").click();
+  await expect(page.getByTestId("community-choice-local")).toContainText(
+    "Open your on-this-device community",
+  );
+  await page.getByTestId("community-choice-local").click();
+  await expect
+    .poll(() =>
+      page.evaluate(() => localStorage.getItem("buzz-active-community-id")),
+    )
+    .toBe("local");
+  await expect
+    .poll(() =>
+      page.evaluate(() => {
+        const raw = localStorage.getItem("buzz-communities");
+        return raw ? JSON.parse(raw).length : 0;
+      }),
+    )
+    .toBe(2);
+});
+
 test("automatically shows community join requirements near the community URL", async ({
   page,
 }) => {