diff --git a/CHANGELOG.md b/CHANGELOG.md
index c89fb978..c73d845a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -51,6 +51,11 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   record's `tools` and `instructions` columns. Dashboard-authored agents, which
   name no class, keep using the dynamic runtime either way; a class name that no
   longer resolves falls back to it rather than failing the run.
+- MCP servers take `allowed_tools` and `require_approval` in the common
+  format. OpenAI's Responses API receives both as given; Anthropic receives
+  `allowed_tools` as an `mcp_toolset` entry in `tools` (every other tool of
+  the server disabled), beside any tools the request already declares
+  (#328, by @dark-panda).
 
 ### Changed
 
diff --git a/lib/active_agent/providers/anthropic/transforms.rb b/lib/active_agent/providers/anthropic/transforms.rb
index ff173a8f..32d026b4 100644
--- a/lib/active_agent/providers/anthropic/transforms.rb
+++ b/lib/active_agent/providers/anthropic/transforms.rb
@@ -38,10 +38,20 @@ def normalize_params(params)
             end
 
             # Handle mcps parameter (common format) -> transforms to mcp_servers (provider format)
-            if params[:mcps]
-              params[:mcp_servers] = normalize_mcp_servers(params.delete(:mcps))
-            elsif params[:mcp_servers]
-              params[:mcp_servers] = normalize_mcp_servers(params[:mcp_servers])
+            if params[:mcps] || params[:mcp_servers]
+              mcps = if params[:mcps]
+                params.delete(:mcps)
+              else
+                params[:mcp_servers]
+              end
+
+              params[:mcp_servers] = normalize_mcp_servers(mcps)
+
+              # A server's allowed_tools become an mcp_toolset entry beside the
+              # request's own tools. Added only when there is one: an empty
+              # list would send `"tools": null` on every MCP request.
+              mcp_tools = normalize_mcp_tools(mcps)
+              params[:tools] = Array(params[:tools]) + mcp_tools if mcp_tools.present?
             end
 
             params
@@ -111,6 +121,49 @@ def normalize_mcp_servers(mcp_servers)
             end
           end
 
+          # Builds Anthropic mcp_toolset tool entries from MCP server allowed_tools.
+          #
+          # Accepts allowed_tools entries as tool-name strings/symbols or hashes
+          # with a :name key; entries in any other format are ignored.
+          #
+          # @param mcp_servers [Array<Hash>]
+          # @return [Array<Hash>, nil] toolset entries, or nil when none were extracted
+          def normalize_mcp_tools(mcp_servers)
+            return nil unless mcp_servers.is_a?(Array)
+
+            result = mcp_servers.filter_map do |server|
+              next unless server.is_a?(Hash)
+
+              server_hash = server.deep_symbolize_keys
+              allowed_tools = server_hash[:allowed_tools]
+              next unless allowed_tools.is_a?(Array)
+
+              configs = allowed_tools.filter_map { |tool|
+                name = case tool
+                when String, Symbol
+                  tool.to_s
+                when Hash
+                  (tool[:name] || tool["name"]).to_s
+                end
+
+                [ name, { enabled: true } ] if name.present?
+              }.to_h
+
+              next if configs.empty?
+
+              {
+                type: "mcp_toolset",
+                mcp_server_name: server_hash[:name],
+                default_config: {
+                  enabled: false
+                },
+                configs: configs
+              }
+            end
+
+            result.presence
+          end
+
           # Normalizes tool_choice from common format to Anthropic gem model objects.
           #
           # The Anthropic gem expects tool_choice to be a model object (ToolChoiceAuto,
diff --git a/lib/active_agent/providers/open_ai/responses/transforms.rb b/lib/active_agent/providers/open_ai/responses/transforms.rb
index 86b06c97..5b365149 100644
--- a/lib/active_agent/providers/open_ai/responses/transforms.rb
+++ b/lib/active_agent/providers/open_ai/responses/transforms.rb
@@ -96,6 +96,14 @@ def normalize_mcp_servers(mcp_servers)
                   server_url: server_hash[:url] || server_hash[:server_url]
                 }
 
+                if server_hash[:require_approval]
+                  result[:require_approval] = server_hash[:require_approval]
+                end
+
+                if server_hash[:allowed_tools]
+                  result[:allowed_tools] = server_hash[:allowed_tools]
+                end
+
                 # Keep authorization field (OpenAI uses 'authorization', not 'authorization_token')
                 if server_hash[:authorization]
                   result[:authorization] = server_hash[:authorization]
diff --git a/test/providers/anthropic/transforms_test.rb b/test/providers/anthropic/transforms_test.rb
index 3c223a7b..5f694221 100644
--- a/test/providers/anthropic/transforms_test.rb
+++ b/test/providers/anthropic/transforms_test.rb
@@ -691,6 +691,262 @@ def transforms
 
         assert_equal "not an array", result
       end
+
+      # normalize_mcp_tools tests
+      test "normalize_mcp_tools converts allowed_tools to mcp_toolset format" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: [
+              { name: "create_payment" },
+              { name: "get_payment" }
+            ]
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_equal 1, result.size
+        assert_equal "mcp_toolset", result[0][:type]
+        assert_equal "stripe", result[0][:mcp_server_name]
+        assert_equal false, result[0][:default_config][:enabled]
+        assert_equal 2, result[0][:configs].size
+        assert_equal true, result[0][:configs]["create_payment"][:enabled]
+        assert_equal true, result[0][:configs]["get_payment"][:enabled]
+      end
+
+      test "normalize_mcp_tools handles multiple servers with allowed_tools" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: [
+              { name: "create_payment" }
+            ]
+          },
+          {
+            name: "github",
+            url: "https://api.github.com",
+            allowed_tools: [
+              { name: "search_repos" },
+              { name: "create_issue" }
+            ]
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_equal 2, result.size
+        assert_equal "stripe", result[0][:mcp_server_name]
+        assert_equal 1, result[0][:configs].size
+        assert_equal "github", result[1][:mcp_server_name]
+        assert_equal 2, result[1][:configs].size
+      end
+
+      test "normalize_mcp_tools skips servers without allowed_tools" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: [
+              { name: "create_payment" }
+            ]
+          },
+          {
+            name: "public",
+            url: "https://public.api.com"
+            # No allowed_tools
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_equal 1, result.size
+        assert_equal "stripe", result[0][:mcp_server_name]
+      end
+
+      test "normalize_mcp_tools handles allowed_tools as array of strings" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: [ "create_payment", "get_payment" ]
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_equal 1, result.size
+        assert_equal "mcp_toolset", result[0][:type]
+        assert_equal "stripe", result[0][:mcp_server_name]
+        assert_equal 2, result[0][:configs].size
+        assert_equal true, result[0][:configs]["create_payment"][:enabled]
+        assert_equal true, result[0][:configs]["get_payment"][:enabled]
+      end
+
+      test "normalize_mcp_tools handles mixed string and hash allowed_tools" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: [ "create_payment", { name: "get_payment" }, :list_payments, 42 ]
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_equal 1, result.size
+        assert_equal 3, result[0][:configs].size
+        assert_equal true, result[0][:configs]["create_payment"][:enabled]
+        assert_equal true, result[0][:configs]["get_payment"][:enabled]
+        assert_equal true, result[0][:configs]["list_payments"][:enabled]
+      end
+
+      test "normalize_mcp_tools returns nil for empty allowed_tools array" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: []
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_nil result
+      end
+
+      test "normalize_mcp_tools returns nil for servers all without allowed_tools" do
+        mcp_servers = [
+          {
+            name: "public",
+            url: "https://public.api.com"
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_nil result
+      end
+
+      test "normalize_mcp_tools returns nil for nil input" do
+        result = transforms.normalize_mcp_tools(nil)
+
+        assert_nil result
+      end
+
+      test "normalize_mcp_tools returns nil for empty array" do
+        result = transforms.normalize_mcp_tools([])
+
+        assert_nil result
+      end
+
+      test "normalize_mcp_tools returns nil for non-array input" do
+        result = transforms.normalize_mcp_tools("not an array")
+
+        assert_nil result
+      end
+
+      test "normalize_mcp_tools handles single tool" do
+        mcp_servers = [
+          {
+            name: "stripe",
+            url: "https://mcp.stripe.com",
+            allowed_tools: [
+              { name: "create_payment" }
+            ]
+          }
+        ]
+
+        result = transforms.normalize_mcp_tools(mcp_servers)
+
+        assert_equal 1, result.size
+        assert_equal 1, result[0][:configs].size
+        assert_equal true, result[0][:configs]["create_payment"][:enabled]
+      end
+
+      # Integration test for normalize_params with allowed_tools
+      test "normalize_params extracts mcp_tools from mcps with allowed_tools" do
+        params = {
+          mcps: [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com",
+              authorization: "sk_test_123",
+              allowed_tools: [
+                { name: "create_payment" },
+                { name: "get_payment" }
+              ]
+            }
+          ]
+        }
+
+        result = transforms.normalize_params(params)
+
+        # Should have mcp_servers
+        assert_equal 1, result[:mcp_servers].size
+        assert_equal "stripe", result[:mcp_servers][0][:name]
+
+        # Should have extracted tools from allowed_tools
+        assert result[:tools].present?
+        assert_equal 1, result[:tools].size
+        assert_equal "mcp_toolset", result[:tools][0][:type]
+        assert_equal "stripe", result[:tools][0][:mcp_server_name]
+        assert_equal 2, result[:tools][0][:configs].size
+      end
+
+      test "normalize_params does not set tools key when mcps have no allowed_tools" do
+        params = {
+          mcps: [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com"
+            }
+          ]
+        }
+
+        result = transforms.normalize_params(params)
+
+        assert_equal 1, result[:mcp_servers].size
+        assert_not result.key?(:tools)
+      end
+
+      test "normalize_params does not set tools key for empty mcp_servers default" do
+        params = {
+          mcp_servers: []
+        }
+
+        result = transforms.normalize_params(params)
+
+        assert_not result.key?(:tools)
+      end
+
+      test "normalize_params keeps existing tools and adds the mcp toolset beside them" do
+        params = {
+          tools: [
+            { name: "existing_tool", input_schema: { type: "object" } }
+          ],
+          mcps: [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com",
+              allowed_tools: [
+                { name: "create_payment" }
+              ]
+            }
+          ]
+        }
+
+        result = transforms.normalize_params(params)
+
+        # The request's own tools stay, and the server's allowed_tools still
+        # restrict what it exposes rather than being dropped.
+        assert_equal 2, result[:tools].size
+        assert_equal "existing_tool", result[:tools][0][:name]
+        assert_equal "mcp_toolset", result[:tools][1][:type]
+        assert_equal({ "create_payment" => { enabled: true } }, result[:tools][1][:configs])
+      end
     end
   end
 end
diff --git a/test/providers/open_ai/responses/transforms_test.rb b/test/providers/open_ai/responses/transforms_test.rb
index c36eea00..ae9ecaae 100644
--- a/test/providers/open_ai/responses/transforms_test.rb
+++ b/test/providers/open_ai/responses/transforms_test.rb
@@ -523,6 +523,163 @@ def serializable.serialize
 
           assert_equal [], result
         end
+
+        # require_approval tests
+        test "normalize_mcp_servers handles require_approval always" do
+          servers = [
+            { name: "stripe", url: "https://mcp.stripe.com", require_approval: "always" }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_equal "always", result[0][:require_approval]
+        end
+
+        test "normalize_mcp_servers handles require_approval never" do
+          servers = [
+            { name: "stripe", url: "https://mcp.stripe.com", require_approval: "never" }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_equal "never", result[0][:require_approval]
+        end
+
+        test "normalize_mcp_servers handles require_approval with hash" do
+          servers = [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com",
+              require_approval: {
+                always: [ "payment_methods" ],
+                never: [ "read_operations" ]
+              }
+            }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_equal [ "payment_methods" ], result[0][:require_approval][:always]
+          assert_equal [ "read_operations" ], result[0][:require_approval][:never]
+        end
+
+        test "normalize_mcp_servers without require_approval omits field" do
+          servers = [
+            { name: "stripe", url: "https://mcp.stripe.com" }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_nil result[0][:require_approval]
+        end
+
+        # allowed_tools tests
+        test "normalize_mcp_servers handles allowed_tools array" do
+          servers = [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com",
+              allowed_tools: [ "create_payment", "get_payment" ]
+            }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_equal [ "create_payment", "get_payment" ], result[0][:allowed_tools]
+        end
+
+        test "normalize_mcp_servers handles empty allowed_tools array" do
+          servers = [
+            { name: "stripe", url: "https://mcp.stripe.com", allowed_tools: [] }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_equal [], result[0][:allowed_tools]
+        end
+
+        test "normalize_mcp_servers without allowed_tools omits field" do
+          servers = [
+            { name: "stripe", url: "https://mcp.stripe.com" }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_nil result[0][:allowed_tools]
+        end
+
+        # Combined require_approval and allowed_tools tests
+        test "normalize_mcp_servers handles both require_approval and allowed_tools" do
+          servers = [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com",
+              authorization: "sk_test_123",
+              require_approval: "always",
+              allowed_tools: [ "create_payment", "get_payment" ]
+            }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 1, result.size
+          assert_equal "mcp", result[0][:type]
+          assert_equal "stripe", result[0][:server_label]
+          assert_equal "https://mcp.stripe.com", result[0][:server_url]
+          assert_equal "sk_test_123", result[0][:authorization]
+          assert_equal "always", result[0][:require_approval]
+          assert_equal [ "create_payment", "get_payment" ], result[0][:allowed_tools]
+        end
+
+        test "normalize_mcp_servers handles different require_approval for multiple servers" do
+          servers = [
+            {
+              name: "stripe",
+              url: "https://mcp.stripe.com",
+              require_approval: "always",
+              allowed_tools: [ "create_payment" ]
+            },
+            {
+              name: "github",
+              url: "https://api.githubcopilot.com/mcp/",
+              require_approval: "never",
+              allowed_tools: [ "search_repos", "create_issue" ]
+            }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal 2, result.size
+          assert_equal "always", result[0][:require_approval]
+          assert_equal [ "create_payment" ], result[0][:allowed_tools]
+          assert_equal "never", result[1][:require_approval]
+          assert_equal [ "search_repos", "create_issue" ], result[1][:allowed_tools]
+        end
+
+        test "normalize_mcp_servers preserves require_approval and allowed_tools in already normalized format" do
+          servers = [
+            {
+              type: "mcp",
+              server_label: "stripe",
+              server_url: "https://mcp.stripe.com",
+              require_approval: "always",
+              allowed_tools: [ "create_payment" ]
+            }
+          ]
+
+          result = transforms.normalize_mcp_servers(servers)
+
+          assert_equal servers, result
+          assert_equal "always", result[0][:require_approval]
+          assert_equal [ "create_payment" ], result[0][:allowed_tools]
+        end
       end
     end
   end