diff --git a/backend/agent/utils.py b/backend/agent/utils.py
index 9162f138..9695adca 100644
--- a/backend/agent/utils.py
+++ b/backend/agent/utils.py
@@ -142,6 +142,16 @@ async def check_agent_run_limit(client, account_id: str) -> Dict[str, Any]:
 
 async def check_agent_count_limit(client, account_id: str) -> Dict[str, Any]:
     try:
+        # In local mode, allow practically unlimited custom agents
+        if config.ENV_MODE.value == "local":
+            logger.debug(f"Local mode detected - bypassing agent count limit for account {account_id}")
+            return {
+                'can_create': True,
+                'current_count': 0,  # Return 0 to avoid showing any limit warnings
+                'limit': 999999,     # Practically unlimited
+                'tier_name': 'local'
+            }
+        
         try:
             result = await Cache.get(f"agent_count_limit:{account_id}")
             if result:
diff --git a/backend/utils/config.py b/backend/utils/config.py
index 9344f9ef..852a3eaa 100644
--- a/backend/utils/config.py
+++ b/backend/utils/config.py
@@ -272,6 +272,7 @@ class Configuration:
     _MAX_PARALLEL_AGENT_RUNS_ENV: Optional[str] = None
     
     # Agent limits per billing tier
+    # Note: These limits are bypassed in local mode (ENV_MODE=local) where unlimited agents are allowed
     AGENT_LIMITS = {
         'free': 2,
         'tier_2_20': 5,