diff --git a/src/vs/workbench/contrib/chat/common/chatModel.ts b/src/vs/workbench/contrib/chat/common/chatModel.ts
index 2aee47bf2a31c..ecfb7415dee42 100644
--- a/src/vs/workbench/contrib/chat/common/chatModel.ts
+++ b/src/vs/workbench/contrib/chat/common/chatModel.ts
@@ -1715,7 +1715,7 @@ export class ChatModel extends Disposable implements IChatModel {
 
 		// Retain a reference to itself when a request is in progress, so the ChatModel stays alive in the background
 		// only while running a request. TODO also keep it alive for 5min or so so we don't have to dispose/restore too often?
-		if (this.initialLocation === ChatAgentLocation.Chat && configurationService.getValue<boolean>('chat.localBackgroundSessions') && !initialModelProps.disableBackgroundKeepAlive) {
+		if (this.initialLocation === ChatAgentLocation.Chat && !initialModelProps.disableBackgroundKeepAlive) {
 			const selfRef = this._register(new MutableDisposable<IChatModelReference>());
 			this._register(autorun(r => {
 				const inProgress = this.requestInProgress.read(r);
diff --git a/src/vs/workbench/contrib/chat/test/common/chatModel.test.ts b/src/vs/workbench/contrib/chat/test/common/chatModel.test.ts
index 03e0ec08b697c..fd0ce567622f4 100644
--- a/src/vs/workbench/contrib/chat/test/common/chatModel.test.ts
+++ b/src/vs/workbench/contrib/chat/test/common/chatModel.test.ts
@@ -24,8 +24,9 @@ import { TestExtensionService, TestStorageService } from '../../../../test/commo
 import { ChatAgentService, IChatAgentService } from '../../common/chatAgents.js';
 import { ChatModel, ISerializableChatData1, ISerializableChatData2, ISerializableChatData3, normalizeSerializableChatData, Response } from '../../common/chatModel.js';
 import { ChatRequestTextPart } from '../../common/chatParserTypes.js';
-import { IChatToolInvocation } from '../../common/chatService.js';
+import { IChatService, IChatToolInvocation } from '../../common/chatService.js';
 import { ChatAgentLocation } from '../../common/constants.js';
+import { MockChatService } from './mockChatService.js';
 
 suite('ChatModel', () => {
 	const testDisposables = ensureNoDisposablesAreLeakedInTestSuite();
@@ -40,6 +41,7 @@ suite('ChatModel', () => {
 		instantiationService.stub(IContextKeyService, new MockContextKeyService());
 		instantiationService.stub(IChatAgentService, testDisposables.add(instantiationService.createInstance(ChatAgentService)));
 		instantiationService.stub(IConfigurationService, new TestConfigurationService());
+		instantiationService.stub(IChatService, new MockChatService());
 	});
 
 	test('removeRequest', async () => {
@@ -267,6 +269,7 @@ suite('ChatResponseModel', () => {
 		instantiationService.stub(IContextKeyService, new MockContextKeyService());
 		instantiationService.stub(IChatAgentService, testDisposables.add(instantiationService.createInstance(ChatAgentService)));
 		instantiationService.stub(IConfigurationService, new TestConfigurationService());
+		instantiationService.stub(IChatService, new MockChatService());
 	});
 
 	test('timestamp and confirmationAdjustedTimestamp', async () => {