diff --git a/llama_stack/providers/inline/datasetio/localfs/datasetio.py b/llama_stack/providers/inline/datasetio/localfs/datasetio.py
index bbda6d8bf..9d7ea9870 100644
--- a/llama_stack/providers/inline/datasetio/localfs/datasetio.py
+++ b/llama_stack/providers/inline/datasetio/localfs/datasetio.py
@@ -9,6 +9,8 @@ import pandas
 from llama_models.llama3.api.datatypes import *  # noqa: F403
 
 from llama_stack.apis.datasetio import *  # noqa: F403
+import base64
+import os
 from abc import ABC, abstractmethod
 from dataclasses import dataclass
 from urllib.parse import urlparse
@@ -139,19 +141,31 @@ class LocalFSDatasetIOImpl(DatasetIO, DatasetsProtocolPrivate):
         dataset_impl.load()
 
         new_rows_df = pandas.DataFrame(rows)
-
         new_rows_df = dataset_impl._validate_dataset_schema(new_rows_df)
-
         dataset_impl.df = pandas.concat(
             [dataset_impl.df, new_rows_df], ignore_index=True
         )
 
         url = str(dataset_info.dataset_def.url)
         parsed_url = urlparse(url)
+
         if parsed_url.scheme == "file" or not parsed_url.scheme:
             file_path = parsed_url.path
+            os.makedirs(os.path.dirname(file_path), exist_ok=True)
             dataset_impl.df.to_csv(file_path, index=False)
+        elif parsed_url.scheme == "data":
+            # For data URLs, we need to update the base64-encoded content
+            if not parsed_url.path.startswith("text/csv;base64,"):
+                raise ValueError("Data URL must be a base64-encoded CSV")
+
+            csv_buffer = dataset_impl.df.to_csv(index=False)
+            base64_content = base64.b64encode(csv_buffer.encode("utf-8")).decode(
+                "utf-8"
+            )
+            dataset_info.dataset_def.url = URL(
+                uri=f"data:text/csv;base64,{base64_content}"
+            )
         else:
             raise ValueError(
-                f"Unsupported URL scheme: {parsed_url.scheme}. Only file:// URLs are supported for writing."
+                f"Unsupported URL scheme: {parsed_url.scheme}. Only file:// and data: URLs are supported for writing."
             )