diff --git a/src/khoj/migrations/migrate_offline_chat_default_model_2.py b/src/khoj/migrations/migrate_offline_chat_default_model_2.py
new file mode 100644
index 00000000..107b7130
--- /dev/null
+++ b/src/khoj/migrations/migrate_offline_chat_default_model_2.py
@@ -0,0 +1,71 @@
+"""
+Current format of khoj.yml
+---
+app:
+    ...
+content-type:
+    ...
+processor:
+  conversation:
+    offline-chat:
+        enable-offline-chat: false
+        chat-model: mistral-7b-instruct-v0.1.Q4_0.gguf
+    ...
+search-type:
+    ...
+
+New format of khoj.yml
+---
+app:
+    ...
+content-type:
+    ...
+processor:
+  conversation:
+    offline-chat:
+        enable-offline-chat: false
+        chat-model: NousResearch/Hermes-2-Pro-Mistral-7B-GGUF
+    ...
+search-type:
+    ...
+"""
+import logging
+
+from packaging import version
+
+from khoj.utils.yaml import load_config_from_file, save_config_to_file
+
+logger = logging.getLogger(__name__)
+
+
+def migrate_offline_chat_default_model(args):
+    schema_version = "1.7.0"
+    raw_config = load_config_from_file(args.config_file)
+    previous_version = raw_config.get("version")
+
+    if "processor" not in raw_config:
+        return args
+    if raw_config["processor"] is None:
+        return args
+    if "conversation" not in raw_config["processor"]:
+        return args
+    if "offline-chat" not in raw_config["processor"]["conversation"]:
+        return args
+    if "chat-model" not in raw_config["processor"]["conversation"]["offline-chat"]:
+        return args
+
+    if previous_version is None or version.parse(previous_version) < version.parse(schema_version):
+        logger.info(
+            f"Upgrading config schema to {schema_version} from {previous_version} to change default (offline) chat model to mistral GGUF"
+        )
+        raw_config["version"] = schema_version
+
+        # Update offline chat model to use Nous Research's Hermes-2-Pro GGUF in path format suitable for llama-cpp
+        offline_chat_model = raw_config["processor"]["conversation"]["offline-chat"]["chat-model"]
+        if offline_chat_model == "mistral-7b-instruct-v0.1.Q4_0.gguf":
+            raw_config["processor"]["conversation"]["offline-chat"][
+                "chat-model"
+            ] = "NousResearch/Hermes-2-Pro-Mistral-7B-GGUF"
+
+        save_config_to_file(raw_config, args.config_file)
+    return args