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As AI systems get better, they’re still held back by their training data and can’t access real-time information or specialized tools. The Model Context Protocol (MCP) fixes this by letting AI models connect with outside data sources, tools, and environments. This allows smooth sharing of information and abilities between AI systems and the wider digital world. This standard, created by Anthropic to bring together prompts, context, and tool use, is key for building truly useful AI experiences that can be set up with custom tools.

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How MCP Works in Continue

Currently custom tools can be configured using the Model Context Protocol standard to unify prompts, context, and tool use. MCP Servers can be added to your config using mcpServers.
MCP can only be used in the agent mode.
For ready-to-use configurations for popular MCP servers, see Example MCP Servers.

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Quick Start: How to Set Up Your First MCP Server

Below is a quick example of setting up a new MCP server for use in your config:
  1. Create a folder called .continue/mcpServers at the top level of your workspace
  2. Add a file called playwright-mcp.yaml to this folder
  3. Write the following contents and save
.continue/mcpServers/playwright-mcp.yaml
name: Playwright mcpServer
version: 0.0.1
schema: v1
mcpServers:
  - name: Browser search
    command: npx
    args:
      - "@playwright/mcp@latest"
Now test your MCP server by prompting the following command: 
Open the browser and navigate Hacker News. Save the top 10 headlines in a hn.txt file.
The result will be a generated file called hn.txt in the current working directory. playwright mcp

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How to Set Up Continue Documentation Search with MCP

You can set up an MCP server to search the Continue documentation directly from your config. This is particularly useful for getting help with Continue configuration and features. For complete setup instructions, troubleshooting, and usage examples, see the Continue MCP Reference.

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Using JSON MCP Format from Claude, Cursor, Cline, etc

If you’re coming from another tool that uses JSON MCP format configuration files (like Claude Desktop, Cursor, or Cline), you can copy those JSON config files directly into your .continue/mcpServers/ directory (note the plural “Servers”) and Continue will automatically pick them up.For example, place your JSON MCP config file at .continue/mcpServers/mcp.json in your workspace.

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How to Configure MCP Servers

To set up your own MCP server, read the MCP quickstart and then add an MCP server block to your config file:
config.yaml
# ...
mcpServers:
  - name: SQLite MCP
    command: npx
    args:
      - "-y"
      - "mcp-sqlite"
      - "/path/to/your/database.db"
# ...
When creating a standalone block file in .continue/mcpServers/, remember to include the required metadata fields (name, version, schema) as shown in the Quick Start example above.

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How to Configure MCP Server Properties

MCP components include a few additional properties specific to MCP servers.
  • name: A display name for the MCP server.
  • type: The type of the MCP server: sse, stdio, streamable-http
  • command: The command to run to start the MCP server.
  • args: Arguments to pass to the command.
  • env: Secrets to be injected into the command as environment variables.

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How to Choose MCP Transport Types

MCP now supports remote server connections through HTTP-based transports, expanding beyond the traditional local stdio transport method. This enables integration with cloud-hosted MCP servers and distributed architectures.

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How to Use Server-Sent Events Transport (sse)

For real-time streaming communication, use the SSE transport: 
# ...
mcpServers:
  - name: Name
    type: sse
    url: https://....
# ...

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How to Use Standard Input/Output (stdio)

For local MCP servers that communicate via standard input and output: 
# ...
mcpServers:
  - name: Name
    type: stdio
    command: npx
    args:
      - "@modelcontextprotocol/server-sqlite"
      - "/path/to/your/database.db"
# ...

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How to Use Streamable HTTP Transport

For standard HTTP-based communication with streaming capabilities: 
# ...
mcpServers:
  - name: Name
    type: streamable-http
    url: https://....
# ...
These remote transport options allow you to connect to MCP servers hosted on remote infrastructure, enabling more flexible deployment architectures and shared server resources across multiple clients. For detailed information about transport mechanisms and their use cases, refer to the official MCP documentation on transports.

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How to Work with Secrets in MCP Servers

With some MCP servers you will need to use API keys or other secrets. You can leverage locally stored environment secrets. 
# ...
mcpServers:
  - name: Supabase MCP
    command: npx
    args:
      - -y
      - "@supabase/mcp-server-supabase@latest"
      - --access-token
      - ${{ secrets.SUPABASE_TOKEN }}
    env:
      SUPABASE_TOKEN: ${{ secrets.SUPABASE_TOKEN }}
  - name: GitHub
    command: npx
    args:
      - "-y"
      - "@modelcontextprotocol/server-github"
    env:
      GITHUB_PERSONAL_ACCESS_TOKEN: ${{ secrets.GITHUB_PERSONAL_ACCESS_TOKEN }}
# ...