diff --git a/openhands/runtime/browser/browser_env.py b/openhands/runtime/browser/browser_env.py
index 55e3ce1890..c8d09d9c2b 100644
--- a/openhands/runtime/browser/browser_env.py
+++ b/openhands/runtime/browser/browser_env.py
@@ -1,8 +1,10 @@
 import atexit
 import json
 import multiprocessing
+import os
 import time
 import uuid
+from pathlib import Path
 
 import browsergym.core  # noqa F401 (we register the openended task as a gym environment)
 import gymnasium as gym
@@ -67,6 +69,16 @@ class BrowserEnv:
             raise BrowserInitException('Failed to start browser environment.')
 
     def browser_process(self) -> None:
+        def _is_local_runtime() -> bool:
+            runtime_flag = os.getenv('RUNTIME', '').lower()
+            return runtime_flag == 'local'
+
+        # Default Playwright cache for local runs only; do not override in docker
+        if _is_local_runtime() and 'PLAYWRIGHT_BROWSERS_PATH' not in os.environ:
+            os.environ['PLAYWRIGHT_BROWSERS_PATH'] = str(
+                Path.home() / '.cache' / 'playwright'
+            )
+
         if self.eval_mode:
             assert self.browsergym_eval_env is not None
             logger.info('Initializing browser env for web browsing evaluation.')
@@ -87,6 +99,11 @@ class BrowserEnv:
                 )
             env = gym.make(self.browsergym_eval_env, tags_to_mark='all', timeout=100000)
         else:
+            downloads_path = os.getenv('BROWSERGYM_DOWNLOAD_DIR')
+            if not downloads_path and _is_local_runtime():
+                downloads_path = str(Path.home() / '.cache' / 'browsergym-downloads')
+            if not downloads_path:
+                downloads_path = '/workspace/.downloads/'
             env = gym.make(
                 'browsergym/openended',
                 task_kwargs={'start_url': 'about:blank', 'goal': 'PLACEHOLDER_GOAL'},
@@ -96,7 +113,7 @@ class BrowserEnv:
                 tags_to_mark='all',
                 timeout=100000,
                 pw_context_kwargs={'accept_downloads': True},
-                pw_chromium_kwargs={'downloads_path': '/workspace/.downloads/'},
+                pw_chromium_kwargs={'downloads_path': downloads_path},
             )
         obs, info = env.reset()
 
diff --git a/openhands/runtime/impl/local/local_runtime.py b/openhands/runtime/impl/local/local_runtime.py
index f6ef26a1cf..cf81b222eb 100644
--- a/openhands/runtime/impl/local/local_runtime.py
+++ b/openhands/runtime/impl/local/local_runtime.py
@@ -249,7 +249,22 @@ class LocalRuntime(ActionExecutionClient):
             )
         else:
             # Set up workspace directory
+            # For local runtime, prefer a stable host path over /workspace defaults.
+            if (
+                self.config.workspace_base is None
+                and self.config.runtime
+                and self.config.runtime.lower() == 'local'
+            ):
+                env_base = os.getenv('LOCAL_WORKSPACE_BASE')
+                if env_base:
+                    self.config.workspace_base = os.path.abspath(env_base)
+                else:
+                    self.config.workspace_base = os.path.abspath(
+                        os.path.join(os.getcwd(), 'workspace', 'local')
+                    )
+
             if self.config.workspace_base is not None:
+                os.makedirs(self.config.workspace_base, exist_ok=True)
                 logger.warning(
                     f'Workspace base path is set to {self.config.workspace_base}. '
                     'It will be used as the path for the agent to run in. '