diff --git a/supacode/Features/Settings/BusinessLogic/ShortcutConflictDetector.swift b/supacode/Features/Settings/BusinessLogic/ShortcutConflictDetector.swift
new file mode 100644
index 00000000..85a2c08a
--- /dev/null
+++ b/supacode/Features/Settings/BusinessLogic/ShortcutConflictDetector.swift
@@ -0,0 +1,39 @@
+import Foundation
+
+enum ShortcutConflictDetector {
+  static func firstConflictCommandID(
+    commandID: String,
+    binding: Keybinding,
+    policy: KeybindingConflictPolicy,
+    schema: KeybindingSchemaDocument,
+    userOverrides: KeybindingUserOverrideStore
+  ) -> String? {
+    guard shouldWarnForConflict(policy: policy) else {
+      return nil
+    }
+
+    var tentative = userOverrides
+    tentative.overrides[commandID] = KeybindingUserOverride(binding: binding)
+
+    let resolved = KeybindingResolver.resolve(
+      schema: schema,
+      userOverrides: tentative
+    )
+
+    for command in schema.commands where command.allowUserOverride && command.id != commandID {
+      guard resolved.binding(for: command.id)?.binding == binding else { continue }
+      return command.id
+    }
+
+    return nil
+  }
+
+  private static func shouldWarnForConflict(policy: KeybindingConflictPolicy) -> Bool {
+    switch policy {
+    case .warnAndPreferUserOverride, .localOnly:
+      return true
+    case .disallowUserOverride:
+      return false
+    }
+  }
+}
diff --git a/supacode/Features/Settings/Views/ShortcutsSettingsView.swift b/supacode/Features/Settings/Views/ShortcutsSettingsView.swift
index 91246245..a7264254 100644
--- a/supacode/Features/Settings/Views/ShortcutsSettingsView.swift
+++ b/supacode/Features/Settings/Views/ShortcutsSettingsView.swift
@@ -538,29 +538,28 @@ struct ShortcutsSettingsView: View {
     binding: Keybinding,
     policy: KeybindingConflictPolicy
   ) -> ShortcutConflict? {
-    guard policy == .warnAndPreferUserOverride else { return nil }
-
-    var tentative = store.keybindingUserOverrides
-    tentative.overrides[commandID] = KeybindingUserOverride(binding: binding)
-
-    let resolved = KeybindingResolver.resolve(
+    guard let existingCommandID = ShortcutConflictDetector.firstConflictCommandID(
+      commandID: commandID,
+      binding: binding,
+      policy: policy,
       schema: .appResolverSchema(),
-      userOverrides: tentative
-    )
+      userOverrides: store.keybindingUserOverrides
+    ) else {
+      return nil
+    }
 
-    for command in editableCommands where command.id != commandID {
-      guard resolved.binding(for: command.id)?.binding == binding else { continue }
-      let newTitle = editableCommands.first(where: { $0.id == commandID })?.title ?? commandID
-      return ShortcutConflict(
-        newCommandID: commandID,
-        newCommandTitle: newTitle,
-        existingCommandID: command.id,
-        existingCommandTitle: command.title,
-        binding: binding
-      )
+    guard let existingCommand = editableCommands.first(where: { $0.id == existingCommandID }) else {
+      return nil
     }
 
-    return nil
+    let newTitle = editableCommands.first(where: { $0.id == commandID })?.title ?? commandID
+    return ShortcutConflict(
+      newCommandID: commandID,
+      newCommandTitle: newTitle,
+      existingCommandID: existingCommand.id,
+      existingCommandTitle: existingCommand.title,
+      binding: binding
+    )
   }
 
   private func applyPendingOverride(replacingConflict: Bool) {
diff --git a/supacodeTests/ShortcutConflictDetectorTests.swift b/supacodeTests/ShortcutConflictDetectorTests.swift
new file mode 100644
index 00000000..9582a54f
--- /dev/null
+++ b/supacodeTests/ShortcutConflictDetectorTests.swift
@@ -0,0 +1,124 @@
+import Testing
+
+@testable import supacode
+
+struct ShortcutConflictDetectorTests {
+  @Test func localOnlyPolicyWarnsWhenBindingConflictsWithAppAction() {
+    let globalID = "command.global"
+    let localID = "command.local"
+    let conflictBinding = binding("r", modifiers: .init(command: true, shift: true))
+
+    let schema = testSchema([
+      testCommand(
+        id: globalID,
+        title: "Refresh Worktrees",
+        conflictPolicy: .warnAndPreferUserOverride,
+        defaultBinding: conflictBinding
+      ),
+      testCommand(
+        id: localID,
+        title: "Rename Branch",
+        conflictPolicy: .localOnly,
+        defaultBinding: binding("m", modifiers: .init(command: true, shift: true))
+      ),
+    ])
+
+    let conflictID = ShortcutConflictDetector.firstConflictCommandID(
+      commandID: localID,
+      binding: conflictBinding,
+      policy: .localOnly,
+      schema: schema,
+      userOverrides: .empty
+    )
+
+    #expect(conflictID == globalID)
+  }
+
+  @Test func disallowPolicyDoesNotWarn() {
+    let schema = testSchema([
+      testCommand(
+        id: "command.fixed",
+        title: "Fixed",
+        conflictPolicy: .disallowUserOverride,
+        defaultBinding: binding("a", modifiers: .init(command: true))
+      ),
+      testCommand(
+        id: "command.other",
+        title: "Other",
+        conflictPolicy: .warnAndPreferUserOverride,
+        defaultBinding: binding("a", modifiers: .init(command: true))
+      ),
+    ])
+
+    let conflictID = ShortcutConflictDetector.firstConflictCommandID(
+      commandID: "command.fixed",
+      binding: binding("a", modifiers: .init(command: true)),
+      policy: .disallowUserOverride,
+      schema: schema,
+      userOverrides: .empty
+    )
+
+    #expect(conflictID == nil)
+  }
+
+  @Test func returnsNilWhenNoConflict() {
+    let schema = testSchema([
+      testCommand(
+        id: "command.one",
+        title: "One",
+        conflictPolicy: .warnAndPreferUserOverride,
+        defaultBinding: binding("a", modifiers: .init(command: true))
+      ),
+      testCommand(
+        id: "command.two",
+        title: "Two",
+        conflictPolicy: .localOnly,
+        defaultBinding: binding("b", modifiers: .init(command: true))
+      ),
+    ])
+
+    let conflictID = ShortcutConflictDetector.firstConflictCommandID(
+      commandID: "command.two",
+      binding: binding("c", modifiers: .init(command: true)),
+      policy: .localOnly,
+      schema: schema,
+      userOverrides: .empty
+    )
+
+    #expect(conflictID == nil)
+  }
+
+  private func testSchema(_ commands: [KeybindingCommandSchema]) -> KeybindingSchemaDocument {
+    KeybindingSchemaDocument(
+      version: KeybindingSchemaDocument.currentVersion,
+      commands: commands
+    )
+  }
+
+  private func testCommand(
+    id: String,
+    title: String,
+    conflictPolicy: KeybindingConflictPolicy,
+    defaultBinding: Keybinding
+  ) -> KeybindingCommandSchema {
+    KeybindingCommandSchema(
+      id: id,
+      title: title,
+      scope: .configurableAppAction,
+      platform: .macOS,
+      allowUserOverride: true,
+      conflictPolicy: conflictPolicy,
+      defaultBinding: defaultBinding
+    )
+  }
+
+  private func binding(
+    _ key: String,
+    modifiers: KeybindingModifiers
+  ) -> Keybinding {
+    Keybinding(
+      key: key,
+      modifiers: modifiers
+    )
+  }
+}