diff --git a/server/src/http/mcp/mod.rs b/server/src/http/mcp/mod.rs
index dcc5e44a..39c4cc40 100644
--- a/server/src/http/mcp/mod.rs
+++ b/server/src/http/mcp/mod.rs
@@ -14,6 +14,9 @@ pub mod dispatch;
 pub mod git_tools;
 /// MCP tools for merge status and merge-to-master operations.
 pub mod merge_tools;
+/// Task-local progress emitter used to deliver `notifications/progress`
+/// during long-running tool calls so MCP clients' socket timers reset.
+pub mod progress;
 /// MCP tools for QA request, approve, and reject workflows.
 pub mod qa_tools;
 /// MCP tools for running shell commands and test suites.
@@ -36,10 +39,12 @@ use crate::http::gateway::jsonrpc::JsonRpcResponse;
 use poem::handler;
 use poem::http::StatusCode;
 use poem::web::Data;
-use poem::{Body, Request, Response};
+use poem::web::sse::{Event, SSE};
+use poem::{Body, IntoResponse, Request, Response};
 use serde::Deserialize;
 use serde_json::{Value, json};
 use std::sync::Arc;
+use std::time::Duration;
 
 #[derive(Deserialize)]
 struct JsonRpcRequest {
@@ -102,6 +107,24 @@ pub async fn mcp_post_handler(req: &Request, body: Body, ctx: Data<&Arc<AppConte
         return json_response(JsonRpcResponse::error(None, -32600, "Missing id".into()));
     }
 
+    // Progress-aware path: only `tools/call` is long-running, and only when
+    // the client supplies a `progressToken` AND accepts `text/event-stream`
+    // do we take the SSE branch. Everything else returns plain JSON as before.
+    if rpc.method == "tools/call" {
+        let accepts_sse = req
+            .header("accept")
+            .map(|h| h.contains("text/event-stream"))
+            .unwrap_or(false);
+        let progress_token = rpc
+            .params
+            .get("_meta")
+            .and_then(|m| m.get("progressToken"))
+            .cloned();
+        if let (true, Some(token)) = (accepts_sse, progress_token) {
+            return sse_tools_call(rpc.id, rpc.params, token, Arc::clone(&ctx)).await;
+        }
+    }
+
     let resp = match rpc.method.as_str() {
         "initialize" => handle_initialize(rpc.id),
         "tools/list" => {
@@ -114,6 +137,110 @@ pub async fn mcp_post_handler(req: &Request, body: Body, ctx: Data<&Arc<AppConte
     json_response(resp)
 }
 
+/// SSE variant of `tools/call`. Installs a progress emitter in a
+/// `tokio::task_local!` scope before dispatching the tool, then streams
+/// `notifications/progress` events as they arrive followed by the final
+/// JSON-RPC response. Keep-alive comments every 15s keep idle connections
+/// from being closed by intermediate proxies even before the tool emits its
+/// first progress event.
+async fn sse_tools_call(
+    id: Option<Value>,
+    params: Value,
+    progress_token: Value,
+    ctx: Arc<AppContext>,
+) -> Response {
+    use tokio::sync::mpsc::unbounded_channel;
+
+    let tool_name = params
+        .get("name")
+        .and_then(|v| v.as_str())
+        .unwrap_or("")
+        .to_string();
+    let args = params.get("arguments").cloned().unwrap_or(json!({}));
+
+    let (tx, mut rx) = unbounded_channel::<Value>();
+    let emitter = progress::ProgressEmitter {
+        token: progress_token,
+        tx,
+    };
+
+    // Spawn dispatch with the emitter installed in the task-local. The
+    // task runs to completion regardless of whether the SSE consumer is
+    // still listening (so the test job, etc. still finishes and writes
+    // its final state to the CRDT even on client disconnect).
+    let dispatch_ctx = Arc::clone(&ctx);
+    let dispatch_handle = tokio::spawn(async move {
+        progress::EMITTER
+            .scope(emitter, async move {
+                dispatch::dispatch_tool_call(&tool_name, args, &dispatch_ctx).await
+            })
+            .await
+    });
+
+    let id_for_final = id;
+    let stream = async_stream::stream! {
+        let mut dispatch_handle = Some(dispatch_handle);
+        loop {
+            tokio::select! {
+                biased;
+                Some(notification) = rx.recv() => {
+                    let data = serde_json::to_string(&notification).unwrap_or_default();
+                    yield Event::message(data);
+                }
+                join_result = async {
+                    match dispatch_handle.as_mut() {
+                        Some(h) => h.await,
+                        None => std::future::pending().await,
+                    }
+                }, if dispatch_handle.is_some() => {
+                    // Mark the handle taken so the select arm's guard
+                    // disables on the next iteration (we break before
+                    // looping but the explicit take is clearer).
+                    let _ = dispatch_handle.take();
+                    // Drain any progress events that landed while we were
+                    // racing the select arm — they would otherwise sit in
+                    // the receiver and never be flushed.
+                    while let Ok(notification) = rx.try_recv() {
+                        let data = serde_json::to_string(&notification).unwrap_or_default();
+                        yield Event::message(data);
+                    }
+                    let final_resp = match join_result {
+                        Ok(Ok(content)) => JsonRpcResponse::success(
+                            id_for_final.clone(),
+                            json!({ "content": [{ "type": "text", "text": content }] }),
+                        ),
+                        Ok(Err(msg)) => {
+                            crate::slog_warn!("[mcp/sse] Tool call failed: {msg}");
+                            JsonRpcResponse::success(
+                                id_for_final.clone(),
+                                json!({
+                                    "content": [{ "type": "text", "text": msg }],
+                                    "isError": true
+                                }),
+                            )
+                        }
+                        Err(join_err) => {
+                            crate::slog_warn!("[mcp/sse] Tool dispatch task panicked: {join_err}");
+                            JsonRpcResponse::error(
+                                id_for_final.clone(),
+                                -32603,
+                                format!("internal error: {join_err}"),
+                            )
+                        }
+                    };
+                    let data = serde_json::to_string(&final_resp).unwrap_or_default();
+                    yield Event::message(data);
+                    break;
+                }
+            }
+        }
+    };
+
+    SSE::new(stream)
+        .keep_alive(Duration::from_secs(15))
+        .into_response()
+}
+
 fn json_response(resp: JsonRpcResponse) -> Response {
     let body = serde_json::to_vec(&resp).unwrap_or_default();
     Response::builder()
diff --git a/server/src/http/mcp/progress.rs b/server/src/http/mcp/progress.rs
new file mode 100644
index 00000000..2babfa96
--- /dev/null
+++ b/server/src/http/mcp/progress.rs
@@ -0,0 +1,123 @@
+//! Task-local plumbing for MCP `notifications/progress` events.
+//!
+//! Long-running tool handlers (notably `tool_run_tests`) emit progress events
+//! during execution so the MCP client's transport timer resets and the call
+//! never surfaces as a tool-call error to the agent. The HTTP MCP handler
+//! installs an emitter via `tokio::task_local!` before dispatching the tool
+//! and converts emitted events into SSE messages on the response stream.
+//!
+//! Tool handlers call [`emit_progress`] unconditionally — when no emitter is
+//! installed (plain JSON response path, or test code), the call is a no-op.
+//! That keeps handler code free of `if let Some(...) =` ceremony for the
+//! progress-aware branch.
+//!
+//! Wire format follows MCP 2025-03-26: the emitter wraps the data in a
+//! standard JSON-RPC notification with method `notifications/progress` and a
+//! `progressToken` echoed back to the client.
+
+use serde_json::{Value, json};
+use tokio::sync::mpsc::UnboundedSender;
+
+/// Per-request channel for emitting progress notifications back to an MCP
+/// client. Installed in a `tokio::task_local!` scope by the SSE response
+/// path and consumed by the SSE stream producer.
+#[derive(Clone)]
+pub struct ProgressEmitter {
+    /// The client-supplied opaque token from `params._meta.progressToken`.
+    /// Echoed back unchanged in every progress notification so the client
+    /// can correlate progress with the originating request.
+    pub token: Value,
+    /// Channel into the SSE response stream. Each value sent is a
+    /// fully-formed `notifications/progress` JSON-RPC message ready to be
+    /// serialised as an SSE `data:` field.
+    pub tx: UnboundedSender<Value>,
+}
+
+tokio::task_local! {
+    /// Set by the SSE response path before dispatching a tool call. Unset
+    /// in the plain JSON path and in tests, where [`emit_progress`] no-ops.
+    pub static EMITTER: ProgressEmitter;
+}
+
+/// Emit a progress notification to the current request's SSE stream, if one
+/// is attached. No-op when no emitter is in scope (plain JSON path).
+///
+/// `progress` is a monotonically increasing value (typically seconds elapsed
+/// for long-running tools); `total` is optional and omitted when unknown;
+/// `message` is a short human-readable description of the current state.
+pub fn emit_progress(progress: f64, total: Option<f64>, message: Option<&str>) {
+    let _ = EMITTER.try_with(|e| {
+        let mut params = json!({
+            "progressToken": e.token,
+            "progress": progress,
+        });
+        if let Some(t) = total {
+            params["total"] = json!(t);
+        }
+        if let Some(m) = message {
+            params["message"] = json!(m);
+        }
+        let notification = json!({
+            "jsonrpc": "2.0",
+            "method": "notifications/progress",
+            "params": params,
+        });
+        // Send is fire-and-forget. If the receiver dropped (client
+        // disconnected mid-stream), we don't care — the tool dispatch
+        // task keeps running and writes its final state to the CRDT.
+        let _ = e.tx.send(notification);
+    });
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use tokio::sync::mpsc::unbounded_channel;
+
+    #[tokio::test]
+    async fn emit_progress_no_op_without_emitter() {
+        // Calling outside a task_local scope must not panic.
+        emit_progress(1.0, None, Some("hello"));
+    }
+
+    #[tokio::test]
+    async fn emit_progress_sends_notification_when_emitter_installed() {
+        let (tx, mut rx) = unbounded_channel();
+        let emitter = ProgressEmitter {
+            token: json!("test-token"),
+            tx,
+        };
+        EMITTER
+            .scope(emitter, async {
+                emit_progress(5.0, Some(10.0), Some("halfway"));
+            })
+            .await;
+
+        let notif = rx.recv().await.expect("notification must be delivered");
+        assert_eq!(notif["method"], "notifications/progress");
+        assert_eq!(notif["params"]["progressToken"], "test-token");
+        assert_eq!(notif["params"]["progress"], 5.0);
+        assert_eq!(notif["params"]["total"], 10.0);
+        assert_eq!(notif["params"]["message"], "halfway");
+    }
+
+    #[tokio::test]
+    async fn emit_progress_omits_optional_fields() {
+        let (tx, mut rx) = unbounded_channel();
+        let emitter = ProgressEmitter {
+            token: json!(42),
+            tx,
+        };
+        EMITTER
+            .scope(emitter, async {
+                emit_progress(1.0, None, None);
+            })
+            .await;
+
+        let notif = rx.recv().await.unwrap();
+        assert_eq!(notif["params"]["progressToken"], 42);
+        assert_eq!(notif["params"]["progress"], 1.0);
+        assert!(notif["params"].get("total").is_none());
+        assert!(notif["params"].get("message").is_none());
+    }
+}
diff --git a/server/src/http/mcp/shell_tools/script.rs b/server/src/http/mcp/shell_tools/script.rs
index 43091286..41824b67 100644
--- a/server/src/http/mcp/shell_tools/script.rs
+++ b/server/src/http/mcp/shell_tools/script.rs
@@ -13,6 +13,10 @@ use super::exec::validate_working_dir;
 
 const TEST_TIMEOUT_SECS: u64 = 1200;
 const MAX_OUTPUT_LINES: usize = 100;
+/// How often `tool_run_tests` emits a `notifications/progress` event while a
+/// test job is in flight. Chosen well below typical MCP HTTP transport
+/// timeouts (~60s) so the client's socket timer resets before it can fire.
+const PROGRESS_INTERVAL_SECS: u64 = 25;
 
 // ── In-flight process registry ───────────────────────────────────────────────
 //
@@ -142,9 +146,24 @@ pub(crate) async fn tool_run_tests(args: &Value, ctx: &AppContext) -> Result<Str
 
     // Block server-side, checking every second until done or timeout.
     let start = std::time::Instant::now();
+    let mut last_progress_emit_secs: u64 = 0;
     loop {
         tokio::time::sleep(std::time::Duration::from_secs(1)).await;
 
+        // Emit periodic progress notifications so any SSE consumer's MCP
+        // transport timer resets and the tool call doesn't surface a
+        // transport-timeout error to the agent. No-op when there is no
+        // emitter (plain JSON path).
+        let elapsed_secs = start.elapsed().as_secs();
+        if elapsed_secs.saturating_sub(last_progress_emit_secs) >= PROGRESS_INTERVAL_SECS {
+            crate::http::mcp::progress::emit_progress(
+                elapsed_secs as f64,
+                None,
+                Some(&format!("running tests: {elapsed_secs}s elapsed")),
+            );
+            last_progress_emit_secs = elapsed_secs;
+        }
+
         let mut jobs = active_jobs().lock().map_err(|e| e.to_string())?;
         let job = match jobs.get_mut(&working_dir) {
             Some(j) => j,
@@ -165,9 +184,18 @@ pub(crate) async fn tool_run_tests(args: &Value, ctx: &AppContext) -> Result<Str
                     .unwrap_or_default();
                 let combined = format!("{stdout}{stderr}");
                 let (tests_passed, tests_failed) = parse_test_counts(&combined);
-                let truncated = truncate_output(&combined, MAX_OUTPUT_LINES);
                 let passed = status.success();
                 let exit_code = status.code().unwrap_or(-1);
+                // On success the full cargo output is pure noise that burns
+                // agent tokens — replace with a one-line summary. On failure
+                // we keep the tail (which usually contains the `failures:`
+                // section + final test_result line) so agents have enough
+                // context to fix the failing tests.
+                let response_output = if passed {
+                    format!("All {tests_passed} tests passed.")
+                } else {
+                    truncate_output(&combined, MAX_OUTPUT_LINES)
+                };
                 let crdt_status = if passed { "pass" } else { "fail" };
                 crate::slog!(
                     "[run_tests] Test job for {} finished (pid {}, passed={})",
@@ -176,13 +204,14 @@ pub(crate) async fn tool_run_tests(args: &Value, ctx: &AppContext) -> Result<Str
                     passed
                 );
 
-                // Persist result in CRDT for post-restart visibility.
+                // Persist result in CRDT for post-restart visibility and so
+                // attached callers see the same filtered output.
                 crate::crdt_state::write_test_job(
                     &sid,
                     crdt_status,
                     started_at_unix,
                     Some(unix_now()),
-                    Some(&truncated),
+                    Some(&response_output),
                 );
 
                 // Capture positive test evidence in the DB so the pipeline
@@ -198,7 +227,7 @@ pub(crate) async fn tool_run_tests(args: &Value, ctx: &AppContext) -> Result<Str
                     "timed_out": false,
                     "tests_passed": tests_passed,
                     "tests_failed": tests_failed,
-                    "output": truncated,
+                    "output": response_output,
                 }))
                 .map_err(|e| format!("Serialization error: {e}"));
             }
@@ -257,6 +286,7 @@ pub(crate) async fn tool_run_tests(args: &Value, ctx: &AppContext) -> Result<Str
 /// `cargo test` run rather than racing to kill+respawn.
 async fn attach_to_in_flight_test_job(sid: &str) -> Result<String, String> {
     let start = std::time::Instant::now();
+    let mut last_progress_emit_secs: u64 = 0;
     loop {
         match crate::crdt_state::read_test_job(sid) {
             None => {
@@ -273,7 +303,21 @@ async fn attach_to_in_flight_test_job(sid: &str) -> Result<String, String> {
             }
         }
 
-        if start.elapsed().as_secs() > TEST_TIMEOUT_SECS {
+        // Keep the SSE consumer's MCP socket alive while we wait. No-op when
+        // no emitter is installed (plain JSON path).
+        let elapsed_secs = start.elapsed().as_secs();
+        if elapsed_secs.saturating_sub(last_progress_emit_secs) >= PROGRESS_INTERVAL_SECS {
+            crate::http::mcp::progress::emit_progress(
+                elapsed_secs as f64,
+                None,
+                Some(&format!(
+                    "attached to in-flight test job: {elapsed_secs}s elapsed"
+                )),
+            );
+            last_progress_emit_secs = elapsed_secs;
+        }
+
+        if elapsed_secs > TEST_TIMEOUT_SECS {
             return Err(format!(
                 "Attached test job for '{sid}' did not complete within {TEST_TIMEOUT_SECS}s"
             ));