diff --git a/plugins/memory/hindsight/__init__.py b/plugins/memory/hindsight/__init__.py
index bc82bc40fb5d..277590add9f1 100644
--- a/plugins/memory/hindsight/__init__.py
+++ b/plugins/memory/hindsight/__init__.py
@@ -478,7 +478,9 @@ def save_config(self, values, hermes_home):
         existing = {}
         if config_path.exists():
             try:
-                existing = json.loads(config_path.read_text())
+                parsed = json.loads(config_path.read_text())
+                if isinstance(parsed, dict):
+                    existing = parsed
             except Exception:
                 pass
         existing.update(values)
@@ -589,13 +591,29 @@ def post_setup(self, hermes_home: str, config: dict) -> None:
             val = input(f"  LLM model [{default_model}]: ").strip()
             provider_config["llm_model"] = val or default_model
 
-            sys.stdout.write("  LLM API key: ")
+            effective_config = dict(provider_config)
+            config_path = Path(hermes_home) / "hindsight" / "config.json"
+            try:
+                saved_config = json.loads(config_path.read_text(encoding="utf-8"))
+                if isinstance(saved_config, dict):
+                    effective_config.update(saved_config)
+            except Exception:
+                pass
+            effective_config.update(provider_config)
+            existing_llm_key = _load_simple_env(Path(hermes_home) / ".env").get("HINDSIGHT_LLM_API_KEY", "")
+            if not existing_llm_key:
+                existing_llm_key = _load_simple_env(_embedded_profile_env_path(effective_config)).get(
+                    "HINDSIGHT_API_LLM_API_KEY",
+                    "",
+                )
+            prompt = "  LLM API key (blank to keep existing): " if existing_llm_key else "  LLM API key: "
+            sys.stdout.write(prompt)
             sys.stdout.flush()
             llm_key = getpass.getpass(prompt="") if sys.stdin.isatty() else sys.stdin.readline().strip()
             # Always write explicitly (including empty) so the provider sees ""
             # rather than a missing variable.  The daemon reads from .env at
             # startup and fails when HINDSIGHT_LLM_API_KEY is unset.
-            env_writes["HINDSIGHT_LLM_API_KEY"] = llm_key
+            env_writes["HINDSIGHT_LLM_API_KEY"] = llm_key or existing_llm_key
 
         # Step 4: Save everything
         provider_config["bank_id"] = "hermes"
diff --git a/tests/plugins/memory/test_hindsight_provider.py b/tests/plugins/memory/test_hindsight_provider.py
index 5f1290b2f16a..17fc4217fac6 100644
--- a/tests/plugins/memory/test_hindsight_provider.py
+++ b/tests/plugins/memory/test_hindsight_provider.py
@@ -329,6 +329,66 @@ def test_local_embedded_setup_preserves_existing_key_when_input_left_blank(self,
 
         profile_env = user_home / ".hindsight" / "profiles" / "hermes.env"
         assert profile_env.exists()
+        assert (hermes_home / ".env").read_text() == "HINDSIGHT_LLM_API_KEY=existing-key\nHINDSIGHT_TIMEOUT=120\n"
+        assert "HINDSIGHT_API_LLM_API_KEY=existing-key\n" in profile_env.read_text()
+
+    def test_local_embedded_setup_preserves_existing_key_from_nondefault_profile_env_when_input_left_blank(self, tmp_path, monkeypatch):
+        hermes_home = tmp_path / "hermes-home"
+        user_home = tmp_path / "user-home"
+        user_home.mkdir()
+        monkeypatch.setenv("HOME", str(user_home))
+
+        selections = iter([1, 0])  # local_embedded, openai
+        monkeypatch.setattr("hermes_cli.memory_setup._curses_select", lambda *args, **kwargs: next(selections))
+        monkeypatch.setattr("shutil.which", lambda name: None)
+        monkeypatch.setattr("builtins.input", lambda prompt="": "")
+        monkeypatch.setattr("sys.stdin.isatty", lambda: True)
+        monkeypatch.setattr("getpass.getpass", lambda prompt="": "")
+        monkeypatch.setattr("hermes_cli.config.save_config", lambda cfg: None)
+
+        provider = HindsightMemoryProvider()
+        provider.save_config({"profile": "coder"}, str(hermes_home))
+
+        profile_env = user_home / ".hindsight" / "profiles" / "coder.env"
+        profile_env.parent.mkdir(parents=True, exist_ok=True)
+        profile_env.write_text("HINDSIGHT_API_LLM_API_KEY=existing-key\n")
+
+        provider.post_setup(str(hermes_home), {"memory": {}})
+
+        hermes_env = user_home / ".hindsight" / "profiles" / "hermes.env"
+        assert profile_env.exists()
+        assert not hermes_env.exists()
+        assert (hermes_home / ".env").read_text() == "HINDSIGHT_LLM_API_KEY=existing-key\nHINDSIGHT_TIMEOUT=120\n"
+        assert "HINDSIGHT_API_LLM_API_KEY=existing-key\n" in profile_env.read_text()
+
+    def test_local_embedded_setup_ignores_nondict_saved_config_when_input_left_blank(self, tmp_path, monkeypatch):
+        hermes_home = tmp_path / "hermes-home"
+        user_home = tmp_path / "user-home"
+        user_home.mkdir()
+        monkeypatch.setenv("HOME", str(user_home))
+
+        selections = iter([1, 0])  # local_embedded, openai
+        monkeypatch.setattr("hermes_cli.memory_setup._curses_select", lambda *args, **kwargs: next(selections))
+        monkeypatch.setattr("shutil.which", lambda name: None)
+        monkeypatch.setattr("builtins.input", lambda prompt="": "")
+        monkeypatch.setattr("sys.stdin.isatty", lambda: True)
+        monkeypatch.setattr("getpass.getpass", lambda prompt="": "")
+        monkeypatch.setattr("hermes_cli.config.save_config", lambda cfg: None)
+
+        config_path = hermes_home / "hindsight" / "config.json"
+        config_path.parent.mkdir(parents=True, exist_ok=True)
+        config_path.write_text("[]")
+
+        env_path = hermes_home / ".env"
+        env_path.parent.mkdir(parents=True, exist_ok=True)
+        env_path.write_text("HINDSIGHT_LLM_API_KEY=existing-key\n")
+
+        provider = HindsightMemoryProvider()
+        provider.post_setup(str(hermes_home), {"memory": {}})
+
+        profile_env = user_home / ".hindsight" / "profiles" / "hermes.env"
+        assert profile_env.exists()
+        assert (hermes_home / ".env").read_text() == "HINDSIGHT_LLM_API_KEY=existing-key\nHINDSIGHT_TIMEOUT=120\n"
         assert "HINDSIGHT_API_LLM_API_KEY=existing-key\n" in profile_env.read_text()