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The Claude Agent SDK supports both SDK MCP servers (in-process) and external MCP servers (separate processes). SDK servers run directly within your Python application, providing better performance and simpler deployment.

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SDK MCP Servers (In-Process)

SDK MCP servers are in-process MCP servers that run directly within your Python application, eliminating the need for separate processes that regular MCP servers require.

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Benefits Over External Servers

  • No subprocess management - Runs in the same process as your application
  • Better performance - No IPC overhead for tool calls
  • Simpler deployment - Single Python process instead of multiple
  • Easier debugging - All code runs in the same process
  • Type safety - Direct Python function calls with type hints
  • Direct access - Tools have direct access to your application’s state

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Creating a Simple SDK MCP Server

Use the @tool decorator to define tools and create_sdk_mcp_server() to bundle them: 
from claude_agent_sdk import (
    tool,
    create_sdk_mcp_server,
    ClaudeAgentOptions,
    ClaudeSDKClient
)

# Define a tool using the @tool decorator
@tool("greet", "Greet a user", {"name": str})
async def greet_user(args):
    return {
        "content": [
            {"type": "text", "text": f"Hello, {args['name']}!"}
        ]
    }

# Create an SDK MCP server
server = create_sdk_mcp_server(
    name="my-tools",
    version="1.0.0",
    tools=[greet_user]
)

# Use it with Claude
options = ClaudeAgentOptions(
    mcp_servers={"tools": server},
    allowed_tools=["mcp__tools__greet"]
)

async with ClaudeSDKClient(options=options) as client:
    await client.query("Greet Alice")
    async for msg in client.receive_response():
        print(msg)
MCP tool names follow the pattern mcp__<server_name>__<tool_name>. For example, a tool named greet in a server named tools becomes mcp__tools__greet.

​
Complete Calculator Example

Here’s a complete example with multiple tools: 
from claude_agent_sdk import (
    tool,
    create_sdk_mcp_server,
    ClaudeAgentOptions,
    ClaudeSDKClient
)
from typing import Any

# Define calculator tools
@tool("add", "Add two numbers", {"a": float, "b": float})
async def add_numbers(args: dict[str, Any]) -> dict[str, Any]:
    result = args["a"] + args["b"]
    return {
        "content": [{"type": "text", "text": f"{args['a']} + {args['b']} = {result}"}]
    }

@tool("multiply", "Multiply two numbers", {"a": float, "b": float})
async def multiply_numbers(args: dict[str, Any]) -> dict[str, Any]:
    result = args["a"] * args["b"]
    return {
        "content": [{"type": "text", "text": f"{args['a']} × {args['b']} = {result}"}]
    }

@tool("divide", "Divide one number by another", {"a": float, "b": float})
async def divide_numbers(args: dict[str, Any]) -> dict[str, Any]:
    if args["b"] == 0:
        return {
            "content": [{"type": "text", "text": "Error: Division by zero"}],
            "is_error": True
        }
    result = args["a"] / args["b"]
    return {
        "content": [{"type": "text", "text": f"{args['a']} ÷ {args['b']} = {result}"}]
    }

# Create the calculator server
calculator = create_sdk_mcp_server(
    name="calculator",
    version="2.0.0",
    tools=[add_numbers, multiply_numbers, divide_numbers]
)

# Configure and use
options = ClaudeAgentOptions(
    mcp_servers={"calc": calculator},
    allowed_tools=[
        "mcp__calc__add",
        "mcp__calc__multiply",
        "mcp__calc__divide"
    ]
)

async with ClaudeSDKClient(options=options) as client:
    await client.query("Calculate 15 + 27")
    async for msg in client.receive_response():
        print(msg)

​
Tool Input Schemas

The @tool decorator supports different schema formats: 
# Simple type mapping
@tool("simple", "Simple schema", {"name": str, "age": int})
async def simple_tool(args):
    return {"content": [{"type": "text", "text": "Result"}]}

# JSON Schema for complex validation
@tool("complex", "Complex schema", {
    "type": "object",
    "properties": {
        "name": {"type": "string", "minLength": 1},
        "email": {"type": "string", "format": "email"},
        "age": {"type": "integer", "minimum": 0}
    },
    "required": ["name", "email"]
})
async def complex_tool(args):
    return {"content": [{"type": "text", "text": "Result"}]}

​
Accessing Application State

SDK tools run in-process and can access your application’s state directly: 
class DataStore:
    def __init__(self):
        self.items = []

store = DataStore()

@tool("add_item", "Add item to store", {"item": str})
async def add_item(args):
    store.items.append(args["item"])  # Direct access to application state
    return {
        "content": [{"type": "text", "text": f"Added: {args['item']}"}]
    }

@tool("list_items", "List all items", {})
async def list_items(args):
    items_str = ", ".join(store.items)
    return {
        "content": [{"type": "text", "text": f"Items: {items_str}"}]
    }

server = create_sdk_mcp_server(
    name="store",
    tools=[add_item, list_items]
)

​
External MCP Servers

External MCP servers run as separate processes and communicate via stdio, HTTP, or SSE.

​
Stdio Server Configuration

from claude_agent_sdk import ClaudeAgentOptions

options = ClaudeAgentOptions(
    mcp_servers={
        "external-calc": {
            "type": "stdio",
            "command": "python",
            "args": ["-m", "calculator_server"],
            "env": {"PYTHONPATH": "/path/to/modules"}
        }
    }
)

​
HTTP Server Configuration

options = ClaudeAgentOptions(
    mcp_servers={
        "http-server": {
            "type": "http",
            "url": "http://localhost:8080/mcp",
            "headers": {
                "Authorization": "Bearer token123"
            }
        }
    }
)

​
SSE Server Configuration

options = ClaudeAgentOptions(
    mcp_servers={
        "sse-server": {
            "type": "sse",
            "url": "http://localhost:8080/sse",
            "headers": {
                "X-API-Key": "your-api-key"
            }
        }
    }
)

​
Mixed Server Configuration

You can use both SDK and external MCP servers together: 
from claude_agent_sdk import (
    create_sdk_mcp_server,
    tool,
    ClaudeAgentOptions
)

# Create SDK server
@tool("internal_tool", "Internal tool", {"arg": str})
async def internal_tool(args):
    return {"content": [{"type": "text", "text": "Result"}]}

internal_server = create_sdk_mcp_server(
    name="internal",
    tools=[internal_tool]
)

# Configure with both types
options = ClaudeAgentOptions(
    mcp_servers={
        "internal": internal_server,  # SDK server (in-process)
        "external": {                  # External server (subprocess)
            "type": "stdio",
            "command": "external-server"
        }
    },
    allowed_tools=[
        "mcp__internal__internal_tool",
        "mcp__external__external_tool"
    ]
)

​
Checking MCP Server Status

You can check the connection status of your MCP servers: 
from claude_agent_sdk import ClaudeSDKClient

async with ClaudeSDKClient(options=options) as client:
    # Get MCP server status
    status = await client.get_mcp_status()
    
    for server in status["mcpServers"]:
        print(f"Server: {server['name']}")
        print(f"Status: {server['status']}")
        
        if server['status'] == 'connected':
            print(f"Server Info: {server.get('serverInfo')}")
            print(f"Tools: {[tool['name'] for tool in server.get('tools', [])]}")
        elif server['status'] == 'failed':
            print(f"Error: {server.get('error')}")
Server status values:
  • connected - Server is connected and ready
  • failed - Connection failed
  • needs-auth - Server requires authentication
  • pending - Connection in progress
  • disabled - Server is disabled

​
Migrating from External to SDK Servers

# BEFORE: External MCP server (separate process)
options_before = ClaudeAgentOptions(
    mcp_servers={
        "calculator": {
            "type": "stdio",
            "command": "python",
            "args": ["-m", "calculator_server"]
        }
    }
)

# AFTER: SDK MCP server (in-process)
from my_tools import add, subtract  # Your tool functions

calculator = create_sdk_mcp_server(
    name="calculator",
    tools=[add, subtract]
)

options_after = ClaudeAgentOptions(
    mcp_servers={"calculator": calculator}
)

​
Loading MCP Servers from Configuration Files

You can load MCP server configurations from a JSON file: 
from pathlib import Path
from claude_agent_sdk import ClaudeAgentOptions

# Point to a configuration file
options = ClaudeAgentOptions(
    mcp_servers="/path/to/mcp-servers.json"
    # or use Path object
    # mcp_servers=Path("/path/to/mcp-servers.json")
)
The configuration file should follow the standard MCP server configuration format.

​
Error Handling

SDK tools can return errors by setting is_error: True: 
@tool("risky_operation", "An operation that might fail", {"input": str})
async def risky_operation(args):
    try:
        # Attempt operation
        result = perform_operation(args["input"])
        return {
            "content": [{"type": "text", "text": f"Success: {result}"}]
        }
    except Exception as e:
        return {
            "content": [{"type": "text", "text": f"Error: {str(e)}"}],
            "is_error": True
        }

​
Best Practices

SDK servers provide better performance and simpler deployment. Use external servers only when you need to integrate with existing services or languages other than Python.
Always validate inputs and handle errors in your tool functions. Return is_error: True to indicate failures to Claude.
Clear tool names and descriptions help Claude understand when and how to use your tools.
Each tool should do one thing well. Break complex operations into multiple focused tools.
Always specify allowed_tools to control which tools Claude can access, preventing unauthorized tool usage.

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