feat(mcp): added ability to connect an mcp server and allow agents to do discovery

apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/tool-input/tool-input.tsx

@@ -1,7 +1,7 @@
 import type React from 'react'
 import { memo, useCallback, useEffect, useMemo, useRef, useState } from 'react'
 import { createLogger } from '@sim/logger'
-import { Loader2, WrenchIcon, XIcon } from 'lucide-react'
+import { ChevronRight, Loader2, ServerIcon, WrenchIcon, XIcon } from 'lucide-react'
 import { useParams } from 'next/navigation'
 import {
   Badge,
@@ -111,18 +111,33 @@ interface ToolInputProps {
  * Represents a tool selected and configured in the workflow
  *
  * @remarks
+ * Valid types include:
+ * - Standard block types (e.g., 'api', 'search', 'function')
+ * - 'custom-tool': User-defined tools with custom code
+ * - 'mcp': Individual MCP tool from a connected server
+ * - 'mcp-server': All tools from an MCP server (agent discovery mode).
+ *   At execution time, this expands into individual tool definitions for
+ *   all tools available on the server.
+ *
  * For custom tools (new format), we only store: type, customToolId, usageControl, isExpanded.
  * Everything else (title, schema, code) is loaded dynamically from the database.
  * Legacy custom tools with inline schema/code are still supported for backwards compatibility.
  */
 interface StoredTool {
-  /** Block type identifier */
+  /**
+   * Block type identifier.
+   * 'mcp-server' enables server-level selection where all tools from
+   * the server are made available to the LLM at execution time.
+   */
   type: string
   /** Display title for the tool (optional for new custom tool format) */
   title?: string
   /** Direct tool ID for execution (optional for new custom tool format) */
   toolId?: string
-  /** Parameter values configured by the user (optional for new custom tool format) */
+  /**
+   * Parameter values configured by the user.
+   * For 'mcp-server' type, includes: serverId, serverUrl, serverName, toolCount
+   */
   params?: Record<string, string>
   /** Whether the tool details are expanded in UI */
   isExpanded?: boolean
@@ -1007,6 +1022,7 @@ export const ToolInput = memo(function ToolInput({
   const [draggedIndex, setDraggedIndex] = useState<number | null>(null)
   const [dragOverIndex, setDragOverIndex] = useState<number | null>(null)
   const [usageControlPopoverIndex, setUsageControlPopoverIndex] = useState<number | null>(null)
+  const [expandedMcpServers, setExpandedMcpServers] = useState<Set<string>>(new Set())
 
   const value = isPreview ? previewValue : storeValue
 
@@ -1236,6 +1252,18 @@ export const ToolInput = memo(function ToolInput({
     return selectedTools.some((tool) => tool.type === 'mcp' && tool.toolId === mcpToolId)
   }
 
+  /**
+   * Checks if an MCP server is already selected (all tools mode).
+   *
+   * @param serverId - The MCP server identifier to check
+   * @returns `true` if the MCP server is already selected
+   */
+  const isMcpServerAlreadySelected = (serverId: string): boolean => {
+    return selectedTools.some(
+      (tool) => tool.type === 'mcp-server' && tool.params?.serverId === serverId
+    )
+  }
+
   /**
    * Checks if a custom tool is already selected.
    *
@@ -1260,6 +1288,37 @@ export const ToolInput = memo(function ToolInput({
     )
   }
 
+  /**
+   * Groups MCP tools by their parent server.
+   *
+   * @returns Map of serverId to array of tools
+   */
+  const mcpToolsByServer = useMemo(() => {
+    const grouped = new Map<string, typeof availableMcpTools>()
+    for (const tool of availableMcpTools) {
+      if (!grouped.has(tool.serverId)) {
+        grouped.set(tool.serverId, [])
+      }
+      grouped.get(tool.serverId)!.push(tool)
+    }
+    return grouped
+  }, [availableMcpTools])
+
+  /**
+   * Toggles the expanded state of an MCP server in the dropdown.
+   */
+  const toggleMcpServerExpanded = useCallback((serverId: string) => {
+    setExpandedMcpServers((prev) => {
+      const next = new Set(prev)
+      if (next.has(serverId)) {
+        next.delete(serverId)
+      } else {
+        next.add(serverId)
+      }
+      return next
+    })
+  }, [])
+
   /**
    * Checks if a block supports multiple operations.
    *
@@ -1805,41 +1864,125 @@ export const ToolInput = memo(function ToolInput({
       })
     }
 
-    // MCP Tools section
+    // MCP Servers section - grouped by server with expandable folders
-    if (!permissionConfig.disableMcpTools && availableMcpTools.length > 0) {
+    if (!permissionConfig.disableMcpTools && mcpToolsByServer.size > 0) {
-      groups.push({
+      // Create items for each server (as expandable folders)
-        section: 'MCP Tools',
+      const serverItems: ComboboxOption[] = []
-        items: availableMcpTools.map((mcpTool) => {
+
-          const server = mcpServers.find((s) => s.id === mcpTool.serverId)
+      for (const [serverId, tools] of mcpToolsByServer) {
-          const alreadySelected = isMcpToolAlreadySelected(mcpTool.id)
+        const server = mcpServers.find((s) => s.id === serverId)
-          return {
+        const serverName = tools[0]?.serverName || server?.name || 'Unknown Server'
-            label: mcpTool.name,
+        const isExpanded = expandedMcpServers.has(serverId)
-            value: `mcp-${mcpTool.id}`,
+        const serverAlreadySelected = isMcpServerAlreadySelected(serverId)
-            iconElement: createToolIcon(mcpTool.bgColor || '#6366F1', mcpTool.icon || McpIcon),
+        const toolCount = tools.length
+
+        // Server folder header (clickable to expand/collapse)
+        serverItems.push({
+          label: serverName,
+          value: `mcp-server-folder-${serverId}`,
+          iconElement: (
+            <div className='flex items-center gap-[4px]'>
+              <ChevronRight
+                className={cn(
+                  'h-[12px] w-[12px] text-[var(--text-tertiary)] transition-transform',
+                  isExpanded && 'rotate-90'
+                )}
+              />
+              <div
+                className='flex h-[16px] w-[16px] flex-shrink-0 items-center justify-center rounded-[4px]'
+                style={{ background: '#6366F1' }}
+              >
+                <ServerIcon className='h-[10px] w-[10px] text-white' />
+              </div>
+            </div>
+          ),
+          onSelect: () => {
+            toggleMcpServerExpanded(serverId)
+          },
+          disabled: false,
+          keepOpen: true, // Keep dropdown open when toggling folder expansion
+        })
+
+        // If expanded, show "Use all tools" option and individual tools
+        if (isExpanded) {
+          // "Use all tools from server" option
+          serverItems.push({
+            label: `Use all ${toolCount} tools`,
+            value: `mcp-server-all-${serverId}`,
+            iconElement: (
+              <div className='ml-[20px] flex h-[16px] w-[16px] flex-shrink-0 items-center justify-center rounded-[4px] bg-[#6366F1]'>
+                <McpIcon className='h-[10px] w-[10px] text-white' />
+              </div>
+            ),
             onSelect: () => {
-              if (alreadySelected) return
+              if (serverAlreadySelected) return
+              // Remove any individual tools from this server that were previously selected
+              const filteredTools = selectedTools.filter(
+                (tool) => !(tool.type === 'mcp' && tool.params?.serverId === serverId)
+              )
               const newTool: StoredTool = {
-                type: 'mcp',
+                type: 'mcp-server',
-                title: mcpTool.name,
+                title: `${serverName} (all tools)`,
-                toolId: mcpTool.id,
+                toolId: `mcp-server-${serverId}`,
                 params: {
-                  serverId: mcpTool.serverId,
+                  serverId,
                   ...(server?.url && { serverUrl: server.url }),
-                  toolName: mcpTool.name,
+                  serverName,
-                  serverName: mcpTool.serverName,
+                  toolCount: String(toolCount),
                 },
-                isExpanded: true,
+                isExpanded: false,
                 usageControl: 'auto',
-                schema: {
-                  ...mcpTool.inputSchema,
-                  description: mcpTool.description,
-                },
               }
-              handleMcpToolSelect(newTool, true)
+              setStoreValue([
+                ...filteredTools.map((tool) => ({ ...tool, isExpanded: false })),
+                newTool,
+              ])
+              setOpen(false)
             },
-            disabled: isPreview || disabled || alreadySelected,
+            disabled: isPreview || disabled || serverAlreadySelected,
+          })
+
+          // Individual tools from this server
+          for (const mcpTool of tools) {
+            const alreadySelected = isMcpToolAlreadySelected(mcpTool.id) || serverAlreadySelected
+            serverItems.push({
+              label: mcpTool.name,
+              value: `mcp-${mcpTool.id}`,
+              iconElement: (
+                <div className='ml-[20px]'>
+                  {createToolIcon(mcpTool.bgColor || '#6366F1', mcpTool.icon || McpIcon)}
+                </div>
+              ),
+              onSelect: () => {
+                if (alreadySelected) return
+                const newTool: StoredTool = {
+                  type: 'mcp',
+                  title: mcpTool.name,
+                  toolId: mcpTool.id,
+                  params: {
+                    serverId: mcpTool.serverId,
+                    ...(server?.url && { serverUrl: server.url }),
+                    toolName: mcpTool.name,
+                    serverName: mcpTool.serverName,
+                  },
+                  isExpanded: true,
+                  usageControl: 'auto',
+                  schema: {
+                    ...mcpTool.inputSchema,
+                    description: mcpTool.description,
+                  },
+                }
+                handleMcpToolSelect(newTool, true)
+              },
+              disabled: isPreview || disabled || alreadySelected,
+            })
           }
-        }),
+        }
+      }
+
+      groups.push({
+        section: 'MCP Servers',
+        items: serverItems,
       })
     }
 
@@ -1922,6 +2065,8 @@ export const ToolInput = memo(function ToolInput({
     customTools,
     availableMcpTools,
     mcpServers,
+    mcpToolsByServer,
+    expandedMcpServers,
     toolBlocks,
     isPreview,
     disabled,
@@ -1935,8 +2080,10 @@ export const ToolInput = memo(function ToolInput({
     getToolIdForOperation,
     isToolAlreadySelected,
     isMcpToolAlreadySelected,
+    isMcpServerAlreadySelected,
     isCustomToolAlreadySelected,
     isWorkflowAlreadySelected,
+    toggleMcpServerExpanded,
   ])
 
   const toolRequiresOAuth = (toolId: string): boolean => {
@@ -2363,24 +2510,25 @@ export const ToolInput = memo(function ToolInput({
       {/* Selected Tools List */}
       {selectedTools.length > 0 &&
         selectedTools.map((tool, toolIndex) => {
-          // Handle custom tools, MCP tools, and workflow tools differently
+          // Handle custom tools, MCP tools, MCP servers, and workflow tools differently
           const isCustomTool = tool.type === 'custom-tool'
           const isMcpTool = tool.type === 'mcp'
+          const isMcpServer = tool.type === 'mcp-server'
           const isWorkflowTool = tool.type === 'workflow'
           const toolBlock =
-            !isCustomTool && !isMcpTool
+            !isCustomTool && !isMcpTool && !isMcpServer
               ? toolBlocks.find((block) => block.type === tool.type)
               : null
 
           // Get the current tool ID (may change based on operation)
           const currentToolId =
-            !isCustomTool && !isMcpTool
+            !isCustomTool && !isMcpTool && !isMcpServer
               ? getToolIdForOperation(tool.type, tool.operation) || tool.toolId || ''
               : tool.toolId || ''
 
           // Get tool parameters using the new utility with block type for UI components
           const toolParams =
-            !isCustomTool && !isMcpTool && currentToolId
+            !isCustomTool && !isMcpTool && !isMcpServer && currentToolId
               ? getToolParametersConfig(currentToolId, tool.type, {
                   operation: tool.operation,
                   ...tool.params,
@@ -2449,21 +2597,32 @@ export const ToolInput = memo(function ToolInput({
             ? customToolParams
             : isMcpTool
               ? mcpToolParams
-              : toolParams?.userInputParameters || []
+              : isMcpServer
+                ? [] // MCP servers have no user-configurable params
+                : toolParams?.userInputParameters || []
 
           // Check if tool requires OAuth
           const requiresOAuth =
-            !isCustomTool && !isMcpTool && currentToolId && toolRequiresOAuth(currentToolId)
+            !isCustomTool &&
+            !isMcpTool &&
+            !isMcpServer &&
+            currentToolId &&
+            toolRequiresOAuth(currentToolId)
           const oauthConfig =
-            !isCustomTool && !isMcpTool && currentToolId ? getToolOAuthConfig(currentToolId) : null
+            !isCustomTool && !isMcpTool && !isMcpServer && currentToolId
+              ? getToolOAuthConfig(currentToolId)
+              : null
 
           // Determine if tool has expandable body content
-          const hasOperations = !isCustomTool && !isMcpTool && hasMultipleOperations(tool.type)
+          const hasOperations =
+            !isCustomTool && !isMcpTool && !isMcpServer && hasMultipleOperations(tool.type)
           const filteredDisplayParams = displayParams.filter((param) =>
             evaluateParameterCondition(param, tool)
           )
-          const hasToolBody =
+          // MCP servers are expandable to show tool list
-            hasOperations || (requiresOAuth && oauthConfig) || filteredDisplayParams.length > 0
+          const hasToolBody = isMcpServer
+            ? true
+            : hasOperations || (requiresOAuth && oauthConfig) || filteredDisplayParams.length > 0
 
           // Only show expansion if tool has body content
           const isExpandedForDisplay = hasToolBody
@@ -2472,6 +2631,11 @@ export const ToolInput = memo(function ToolInput({
               : !!tool.isExpanded
             : false
 
+          // For MCP servers, get the list of tools for display
+          const mcpServerTools = isMcpServer
+            ? availableMcpTools.filter((t) => t.serverId === tool.params?.serverId)
+            : []
+
           return (
             <div
               key={`${tool.customToolId || tool.toolId || toolIndex}-${toolIndex}`}
@@ -2508,7 +2672,7 @@ export const ToolInput = memo(function ToolInput({
                     style={{
                       backgroundColor: isCustomTool
                         ? '#3B82F6'
-                        : isMcpTool
+                        : isMcpTool || isMcpServer
                           ? mcpTool?.bgColor || '#6366F1'
                           : isWorkflowTool
                             ? '#6366F1'
@@ -2519,6 +2683,8 @@ export const ToolInput = memo(function ToolInput({
                       <WrenchIcon className='h-[10px] w-[10px] text-white' />
                     ) : isMcpTool ? (
                       <IconComponent icon={McpIcon} className='h-[10px] w-[10px] text-white' />
+                    ) : isMcpServer ? (
+                      <ServerIcon className='h-[10px] w-[10px] text-white' />
                     ) : isWorkflowTool ? (
                       <IconComponent icon={WorkflowIcon} className='h-[10px] w-[10px] text-white' />
                     ) : (
@@ -2531,6 +2697,11 @@ export const ToolInput = memo(function ToolInput({
                   <span className='truncate font-medium text-[13px] text-[var(--text-primary)]'>
                     {isCustomTool ? customToolTitle : tool.title}
                   </span>
+                  {isMcpServer && (
+                    <Badge variant='default' size='sm'>
+                      {tool.params?.toolCount || mcpServerTools.length} tools
+                    </Badge>
+                  )}
                   {isMcpTool &&
                     !mcpDataLoading &&
                     (() => {
@@ -2636,31 +2807,53 @@ export const ToolInput = memo(function ToolInput({
 
               {!isCustomTool && isExpandedForDisplay && (
                 <div className='flex flex-col gap-[10px] overflow-visible rounded-b-[4px] border-[var(--border-1)] border-t px-[8px] py-[8px]'>
-                  {/* Operation dropdown for tools with multiple operations */}
+                  {/* MCP Server tool list (read-only) */}
-                  {(() => {
+                  {isMcpServer && mcpServerTools.length > 0 && (
-                    const hasOperations = hasMultipleOperations(tool.type)
+                    <div className='flex flex-col gap-[4px]'>
-                    const operationOptions = hasOperations ? getOperationOptions(tool.type) : []
+                      <div className='font-medium text-[12px] text-[var(--text-tertiary)]'>
-
+                        Available tools:
-                    return hasOperations && operationOptions.length > 0 ? (
-                      <div className='relative space-y-[6px]'>
-                        <div className='font-medium text-[13px] text-[var(--text-primary)]'>
-                          Operation
-                        </div>
-                        <Combobox
-                          options={operationOptions
-                            .filter((option) => option.id !== '')
-                            .map((option) => ({
-                              label: option.label,
-                              value: option.id,
-                            }))}
-                          value={tool.operation || operationOptions[0].id}
-                          onChange={(value) => handleOperationChange(toolIndex, value)}
-                          placeholder='Select operation'
-                          disabled={disabled}
-                        />
                       </div>
-                    ) : null
+                      <div className='flex flex-wrap gap-[4px]'>
-                  })()}
+                        {mcpServerTools.map((serverTool) => (
+                          <Badge
+                            key={serverTool.id}
+                            variant='outline'
+                            size='sm'
+                            className='text-[11px]'
+                          >
+                            {serverTool.name}
+                          </Badge>
+                        ))}
+                      </div>
+                    </div>
+                  )}
+
+                  {/* Operation dropdown for tools with multiple operations */}
+                  {!isMcpServer &&
+                    (() => {
+                      const hasOperations = hasMultipleOperations(tool.type)
+                      const operationOptions = hasOperations ? getOperationOptions(tool.type) : []
+
+                      return hasOperations && operationOptions.length > 0 ? (
+                        <div className='relative space-y-[6px]'>
+                          <div className='font-medium text-[13px] text-[var(--text-primary)]'>
+                            Operation
+                          </div>
+                          <Combobox
+                            options={operationOptions
+                              .filter((option) => option.id !== '')
+                              .map((option) => ({
+                                label: option.label,
+                                value: option.id,
+                              }))}
+                            value={tool.operation || operationOptions[0].id}
+                            onChange={(value) => handleOperationChange(toolIndex, value)}
+                            placeholder='Select operation'
+                            disabled={disabled}
+                          />
+                        </div>
+                      ) : null
+                    })()}
 
                   {/* OAuth credential selector if required */}
                   {requiresOAuth && oauthConfig && (

apps/sim/components/emcn/components/combobox/combobox.tsx

@@ -52,6 +52,8 @@ export type ComboboxOption = {
   onSelect?: () => void
   /** Whether this option is disabled */
   disabled?: boolean
+  /** When true, keep the dropdown open after selecting this option */
+  keepOpen?: boolean
 }
 
 /**
@@ -252,13 +254,15 @@ const Combobox = memo(
        * Handles selection of an option
        */
       const handleSelect = useCallback(
-        (selectedValue: string, customOnSelect?: () => void) => {
+        (selectedValue: string, customOnSelect?: () => void, keepOpen?: boolean) => {
           // If option has custom onSelect, use it instead
           if (customOnSelect) {
             customOnSelect()
-            setOpen(false)
+            if (!keepOpen) {
-            setHighlightedIndex(-1)
+              setOpen(false)
-            setSearchQuery('')
+              setHighlightedIndex(-1)
+              setSearchQuery('')
+            }
             return
           }
 
@@ -270,11 +274,13 @@ const Combobox = memo(
             onMultiSelectChange(newValues)
           } else {
             onChange?.(selectedValue)
-            setOpen(false)
+            if (!keepOpen) {
-            setHighlightedIndex(-1)
+              setOpen(false)
-            setSearchQuery('')
+              setHighlightedIndex(-1)
-            if (editable && inputRef.current) {
+              setSearchQuery('')
-              inputRef.current.blur()
+              if (editable && inputRef.current) {
+                inputRef.current.blur()
+              }
             }
           }
         },
@@ -343,7 +349,7 @@ const Combobox = memo(
               e.preventDefault()
               const selectedOption = filteredOptions[highlightedIndex]
               if (selectedOption && !selectedOption.disabled) {
-                handleSelect(selectedOption.value, selectedOption.onSelect)
+                handleSelect(selectedOption.value, selectedOption.onSelect, selectedOption.keepOpen)
               }
             } else if (!editable) {
               e.preventDefault()
@@ -668,7 +674,7 @@ const Combobox = memo(
                                   e.preventDefault()
                                   e.stopPropagation()
                                   if (!option.disabled) {
-                                    handleSelect(option.value, option.onSelect)
+                                    handleSelect(option.value, option.onSelect, option.keepOpen)
                                   }
                                 }}
                                 onMouseEnter={() =>
@@ -743,7 +749,7 @@ const Combobox = memo(
                               e.preventDefault()
                               e.stopPropagation()
                               if (!option.disabled) {
-                                handleSelect(option.value, option.onSelect)
+                                handleSelect(option.value, option.onSelect, option.keepOpen)
                               }
                             }}
                             onMouseEnter={() => !option.disabled && setHighlightedIndex(index)}

apps/sim/executor/handlers/agent/agent-handler.ts

@@ -143,7 +143,7 @@ export class AgentBlockHandler implements BlockHandler {
   private async validateToolPermissions(ctx: ExecutionContext, tools: ToolInput[]): Promise<void> {
     if (!Array.isArray(tools) || tools.length === 0) return
 
-    const hasMcpTools = tools.some((t) => t.type === 'mcp')
+    const hasMcpTools = tools.some((t) => t.type === 'mcp' || t.type === 'mcp-server')
     const hasCustomTools = tools.some((t) => t.type === 'custom-tool')
 
     if (hasMcpTools) {
@@ -161,7 +161,7 @@ export class AgentBlockHandler implements BlockHandler {
   ): Promise<ToolInput[]> {
     if (!Array.isArray(tools) || tools.length === 0) return tools
 
-    const mcpTools = tools.filter((t) => t.type === 'mcp')
+    const mcpTools = tools.filter((t) => t.type === 'mcp' || t.type === 'mcp-server')
     if (mcpTools.length === 0) return tools
 
     const serverIds = [...new Set(mcpTools.map((t) => t.params?.serverId).filter(Boolean))]
@@ -195,7 +195,7 @@ export class AgentBlockHandler implements BlockHandler {
     }
 
     return tools.filter((tool) => {
-      if (tool.type !== 'mcp') return true
+      if (tool.type !== 'mcp' && tool.type !== 'mcp-server') return true
       const serverId = tool.params?.serverId
       if (!serverId) return false
       return availableServerIds.has(serverId)
@@ -211,11 +211,14 @@ export class AgentBlockHandler implements BlockHandler {
     })
 
     const mcpTools: ToolInput[] = []
+    const mcpServers: ToolInput[] = []
     const otherTools: ToolInput[] = []
 
     for (const tool of filtered) {
       if (tool.type === 'mcp') {
         mcpTools.push(tool)
+      } else if (tool.type === 'mcp-server') {
+        mcpServers.push(tool)
       } else {
         otherTools.push(tool)
       }
@@ -224,7 +227,12 @@ export class AgentBlockHandler implements BlockHandler {
     const otherResults = await Promise.all(
       otherTools.map(async (tool) => {
         try {
-          if (tool.type && tool.type !== 'custom-tool' && tool.type !== 'mcp') {
+          if (
+            tool.type &&
+            tool.type !== 'custom-tool' &&
+            tool.type !== 'mcp' &&
+            tool.type !== 'mcp-server'
+          ) {
             await validateBlockType(ctx.userId, tool.type, ctx)
           }
           if (tool.type === 'custom-tool' && (tool.schema || tool.customToolId)) {
@@ -240,12 +248,133 @@ export class AgentBlockHandler implements BlockHandler {
 
     const mcpResults = await this.processMcpToolsBatched(ctx, mcpTools)
 
-    const allTools = [...otherResults, ...mcpResults]
+    // Process MCP servers (all tools from server mode)
+    const mcpServerResults = await this.processMcpServerSelections(ctx, mcpServers)
+
+    const allTools = [...otherResults, ...mcpResults, ...mcpServerResults]
     return allTools.filter(
       (tool): tool is NonNullable<typeof tool> => tool !== null && tool !== undefined
     )
   }
 
+  /**
+   * Process MCP server selections by discovering and formatting all tools from each server.
+   * This enables "agent discovery" mode where the LLM can call any tool from the server.
+   */
+  private async processMcpServerSelections(
+    ctx: ExecutionContext,
+    mcpServerSelections: ToolInput[]
+  ): Promise<any[]> {
+    if (mcpServerSelections.length === 0) return []
+
+    const results: any[] = []
+
+    for (const serverSelection of mcpServerSelections) {
+      const serverId = serverSelection.params?.serverId
+      const serverName = serverSelection.params?.serverName
+      const usageControl = serverSelection.usageControl || 'auto'
+
+      if (!serverId) {
+        logger.error('MCP server selection missing serverId:', serverSelection)
+        continue
+      }
+
+      try {
+        // Discover all tools from this server
+        const discoveredTools = await this.discoverMcpToolsForServer(ctx, serverId)
+
+        // Create tool definitions for each discovered tool
+        for (const mcpTool of discoveredTools) {
+          const created = await this.createMcpToolFromDiscoveredServerTool(
+            ctx,
+            mcpTool,
+            serverId,
+            serverName || serverId,
+            usageControl
+          )
+          if (created) results.push(created)
+        }
+
+        logger.info(
+          `[AgentHandler] Expanded MCP server ${serverName} into ${discoveredTools.length} tools`
+        )
+      } catch (error) {
+        logger.error(`[AgentHandler] Failed to process MCP server selection:`, { serverId, error })
+      }
+    }
+
+    return results
+  }
+
+  /**
+   * Create an MCP tool from server discovery for the "all tools" mode.
+   */
+  private async createMcpToolFromDiscoveredServerTool(
+    ctx: ExecutionContext,
+    mcpTool: any,
+    serverId: string,
+    serverName: string,
+    usageControl: string
+  ): Promise<any> {
+    const toolName = mcpTool.name
+
+    const { filterSchemaForLLM } = await import('@/tools/params')
+    const filteredSchema = filterSchemaForLLM(
+      mcpTool.inputSchema || { type: 'object', properties: {} },
+      {}
+    )
+
+    const toolId = createMcpToolId(serverId, toolName)
+
+    return {
+      id: toolId,
+      name: toolName,
+      description: mcpTool.description || `MCP tool ${toolName} from ${serverName}`,
+      parameters: filteredSchema,
+      params: {},
+      usageControl,
+      executeFunction: async (callParams: Record<string, any>) => {
+        const headers = await buildAuthHeaders()
+        const execUrl = buildAPIUrl('/api/mcp/tools/execute')
+
+        const execResponse = await fetch(execUrl.toString(), {
+          method: 'POST',
+          headers,
+          body: stringifyJSON({
+            serverId,
+            toolName,
+            arguments: callParams,
+            workspaceId: ctx.workspaceId,
+            workflowId: ctx.workflowId,
+            toolSchema: mcpTool.inputSchema,
+          }),
+        })
+
+        if (!execResponse.ok) {
+          throw new Error(
+            `MCP tool execution failed: ${execResponse.status} ${execResponse.statusText}`
+          )
+        }
+
+        const result = await execResponse.json()
+        if (!result.success) {
+          throw new Error(result.error || 'MCP tool execution failed')
+        }
+
+        return {
+          success: true,
+          output: result.data.output || {},
+          metadata: {
+            source: 'mcp-server',
+            serverId,
+            serverName,
+            toolName,
+          },
+        }
+      },
+    }
+  }
+
   private async createCustomTool(ctx: ExecutionContext, tool: ToolInput): Promise<any> {
     const userProvidedParams = tool.params || {}
 

apps/sim/executor/handlers/agent/types.ts

@@ -29,11 +29,36 @@ export interface AgentInputs {
   verbosity?: string
 }
 
+/**
+ * Represents a tool input for the agent block.
+ *
+ * @remarks
+ * Valid types include:
+ * - Standard block types (e.g., 'api', 'search', 'function')
+ * - 'custom-tool': User-defined tools with custom code
+ * - 'mcp': Individual MCP tool from a connected server
+ * - 'mcp-server': All tools from an MCP server (agent discovery mode).
+ *   At execution time, this is expanded into individual tool definitions
+ *   for all tools available on the server. This enables dynamic capability
+ *   discovery where the LLM can call any tool from the server.
+ */
 export interface ToolInput {
+  /**
+   * Tool type identifier.
+   * 'mcp-server' enables server-level selection where all tools from
+   * the server are made available to the LLM at execution time.
+   */
   type?: string
   schema?: any
   title?: string
   code?: string
+  /**
+   * Tool parameters. For 'mcp-server' type, includes:
+   * - serverId: The MCP server ID
+   * - serverUrl: The server URL (optional)
+   * - serverName: Human-readable server name
+   * - toolCount: Number of tools available (for display)
+   */
   params?: Record<string, any>
   timeout?: number
   usageControl?: 'auto' | 'force' | 'none'