In this paper, we compute the cohomology sheaves of the -adic nearby cycles on the local model of the PEL Shimura variety over a ramified prime, with level given by the stabilizer of a self-dual lattice. This local model is known to have isolated singularities. If it has semi-stable reduction, and if the blow-up at the singular point has semi-stable reduction. We compute the nearby cycles on the blow-up, then use proper base change to describe them on the original local model. As a result, we prove that the nearby cycles are trivial when is odd, and that only a single higher cohomology sheaf does not vanish when is even. In this case, we also describe the Galois action by computing the associated Frobenius eigenvalue.

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