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Model Context Protocol

oterm has support for Anthropic's open-source Model Context Protocol. It connects to MCP servers and exposes their tools to whichever model you're chatting with.

Add MCP servers under the mcpServers key in oterm's config.json. The schema matches the convention used by Claude Desktop, Cursor, and pydantic-ai — so you can copy a config block between hosts.

Breaking changes from earlier oterm releases

The MCP integration was rewritten on top of pydantic-ai's MCP support. If you're upgrading, your existing mcpServers config likely needs the following edits:

  • auth: { type: bearer, token: "X" } is no longer recognised. Use headers: { "Authorization": "Bearer X" } instead. Old configs are silently dropped — you'll see 401s from the server until you migrate.
  • cwd is no longer recognised. Use an absolute path in command (or pass the working directory via args).
  • ws:// / wss:// transports are no longer supported. Use HTTP transport instead.
  • MCP prompts are gone — the "Use MCP prompt" command, the modal, and the prompt config in test fixtures are all removed.
  • Stdio subprocess env is no longer inherited from the parent shell. Declare every env var you need explicitly under env. Use ${VAR} substitution to pull values from the parent environment without committing secrets — see Environment variables below.

Tools

MCP tools appear in oterm's tool selector and can be enabled per chat.

Note

Not all models support tools. For models that don't, the tool selection is disabled.

Smaller LLMs are often less capable with tools than larger ones. If you have issues, try reducing the number of tools attached to a chat, increasing the context size, or using a larger LLM.

Transports

stdio transport

For local MCP servers. Accepts command, args, and env. For the git MCP server:

{
  "mcpServers": {
    "git": {
      "command": "docker",
      "args": [
        "run",
        "--rm",
        "-i",
        "--mount",
        "type=bind,src=/Users/ggozad/dev/open-source/oterm,dst=/oterm",
        "mcp/git"
      ]
    }
  }
}

Streamable HTTP transport

For remote MCP servers over HTTP. The url must start with http:// or https://. URLs ending in /sse are treated as SSE; everything else is streamable HTTP.

{
  "mcpServers": {
    "my_mcp": {
      "url": "http://remote:port/path"
    }
  }
}

HTTP headers (auth)

Use the headers dict to attach arbitrary HTTP headers — including Authorization for bearer-token auth:

{
  "mcpServers": {
    "my_mcp": {
      "url": "http://remote:port/path",
      "headers": {
        "Authorization": "Bearer XXX"
      }
    }
  }
}

Environment variables

For security, stdio MCP subprocesses do not inherit oterm's parent environment. That keeps credentials like OPENAI_API_KEY or AWS_SECRET_ACCESS_KEY out of third-party MCP server processes unless you explicitly share them.

Declare env vars in the env dict of each server. Any string value (in env, command, args, url, or headers) can reference the parent environment via ${VAR} (required) or ${VAR:-default} (optional with fallback):

{
  "mcpServers": {
    "github": {
      "command": "${HOME}/.local/bin/mcp-github",
      "args": ["--repo", "${REPO:-ggozad/oterm}"],
      "env": {
        "GITHUB_TOKEN": "${GITHUB_TOKEN}"
      }
    }
  }
}

If a referenced variable is not set and has no default, server setup fails with an error naming the missing variable.

Sampling

MCP sampling is not currently supported — oterm advertises sampling as disabled to every server, so any sampling request is rejected by the protocol rather than crashing the chat.