Model Context Protocol (MCP) server is the backend service responsible for executing tools and orchestrating agent workflows. It can run locally or on a remote machine and exposes one or more tools through a standardized communication protocol—typically SSE (Server-Sent Events) or Studio. The MCP server handles core responsibilities such as:

• Tool execution (e.g., calling APIs, running code, or querying data)
• Routing requests between clients, agents, and tools
• Prompt orchestration, including input/output formatting
• Context and memory retrieval
• Agent control, enabling dynamic, multi-step decision-making

It serves as the operational core of an agentic system, abstracting complex tool interactions behind a modular, secure interface.

Why is MCP server important?

MCP server is where the core intelligence and orchestration of the AI applications and systems live. All agentic behavior, execution decisions, and context management happen here.

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