diff --git a/webui/src/test/setup.ts b/webui/src/test/setup.ts
index 0e7e331..59747be 100644
--- a/webui/src/test/setup.ts
+++ b/webui/src/test/setup.ts
@@ -1,10 +1,44 @@
 import '@testing-library/jest-dom'
-import { afterEach, vi } from 'vitest'
+import { afterEach, beforeEach } from 'vitest'
 
-// Mock fetch globally since your app uses fetch
-global.fetch = vi.fn()
+// Create a working localStorage implementation for tests
+// This ensures localStorage works in both CLI and VSCode test runner
+class LocalStorageMock implements Storage {
+  private store: Map<string, string> = new Map()
+
+  get length(): number {
+    return this.store.size
+  }
+
+  clear(): void {
+    this.store.clear()
+  }
+
+  getItem(key: string): string | null {
+    return this.store.get(key) ?? null
+  }
+
+  key(index: number): string | null {
+    return Array.from(this.store.keys())[index] ?? null
+  }
+
+  removeItem(key: string): void {
+    this.store.delete(key)
+  }
+
+  setItem(key: string, value: string): void {
+    this.store.set(key, value)
+  }
+}
+
+// Replace global localStorage
+global.localStorage = new LocalStorageMock()
+
+// Clean up before each test
+beforeEach(() => {
+  localStorage.clear()
+})
 
-// Clean up after each test
 afterEach(() => {
-  vi.clearAllMocks()
+  localStorage.clear()
 })
\ No newline at end of file