diff --git a/src/api.ts b/src/api.ts
index 8177b2d..1506a6a 100644
--- a/src/api.ts
+++ b/src/api.ts
@@ -166,4 +166,13 @@ export class ChatApiManager {
 
     return this.handleEditorUpdate(systemPrompt, userPrompt);
   }
+
+  /**
+   * Updates the manager's settings and reinitializes the chat client.
+   * @param settings - New configuration settings for the chat API.
+   */
+  public updateSettings(settings: InlineAISettings): void {
+    this.settings = settings;
+    this.chatClient = this.initializeChatClient(settings);
+  }
 }
diff --git a/src/main.ts b/src/main.ts
index 4154467..c12495a 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -10,13 +10,14 @@ import { diffExtension } from "./modules/diffExtension";
 
 export default class InlineAIChatPlugin extends Plugin {
 	settings: InlineAISettings = DEFAULT_SETTINGS;
+	chatapi: ChatApiManager;
 
 	async onload() {
 		await this.loadSettings();
-		const chatapi = new ChatApiManager(this.settings, this.app);
+		this.chatapi = new ChatApiManager(this.settings, this.app);
 
 		this.registerEditorExtension([
-			FloatingTooltipExtension(chatapi),
+			FloatingTooltipExtension(this.chatapi),
 			generatedResponseState,
 			currentSelectionState,
 			buildSelectionHiglightState,
diff --git a/src/settings.ts b/src/settings.ts
index 55078db..4e7cf6a 100644
--- a/src/settings.ts
+++ b/src/settings.ts
@@ -48,6 +48,7 @@ export class InlineAISettingsTab extends PluginSettingTab {
 					.onChange(async (value) => {
 						this.plugin.settings.provider = value as "openai" | "ollama" | "custom";
 						await this.plugin.saveSettings();
+						this.plugin.chatapi.updateSettings(this.plugin.settings);
 						this.display(); // Refresh to update the API key field visibility
 					})
 			);
@@ -63,6 +64,7 @@ export class InlineAISettingsTab extends PluginSettingTab {
 					.onChange(async (value) => {
 						this.plugin.settings.model = value;
 						await this.plugin.saveSettings();
+						this.plugin.chatapi.updateSettings(this.plugin.settings);
 					})
 			);
 
@@ -80,6 +82,7 @@ export class InlineAISettingsTab extends PluginSettingTab {
 						.onChange(async (value) => {
 							this.plugin.settings.apiKey = value;
 							await this.plugin.saveSettings();
+							this.plugin.chatapi.updateSettings(this.plugin.settings);
 						})
 				);
 		}
@@ -98,6 +101,7 @@ export class InlineAISettingsTab extends PluginSettingTab {
 				.onChange(async (value) => {
 					this.plugin.settings.customURL = value;
 					await this.plugin.saveSettings();
+					this.plugin.chatapi.updateSettings(this.plugin.settings);
 				})
 			);
 		}
@@ -118,6 +122,7 @@ export class InlineAISettingsTab extends PluginSettingTab {
 					.onChange(async (value) => {
 						this.plugin.settings.selectionPrompt = value;
 						await this.plugin.saveSettings();
+						this.plugin.chatapi.updateSettings(this.plugin.settings);
 					});
 
 				// Add a CSS class for styling
@@ -135,6 +140,7 @@ export class InlineAISettingsTab extends PluginSettingTab {
 					.onChange(async (value) => {
 						this.plugin.settings.cursorPrompt = value;
 						await this.plugin.saveSettings();
+						this.plugin.chatapi.updateSettings(this.plugin.settings);
 					});
 
 				// Add a CSS class for styling