diff --git a/go.mod b/go.mod
index 9cf969bf2dc..9049c0452c0 100644
--- a/go.mod
+++ b/go.mod
@@ -55,7 +55,7 @@ require (
 	github.com/gocarina/gocsv v0.0.0-20231116093920-b87c2d0e983a
 	github.com/golang-jwt/jwt/v4 v4.5.2
 	github.com/google/go-github/v71 v71.0.0
-	github.com/google/jsonschema-go v0.4.2
+	github.com/google/jsonschema-go v0.4.3
 	github.com/google/uuid v1.6.0
 	github.com/gorilla/securecookie v1.1.1
 	github.com/gorilla/sessions v1.2.1
@@ -76,7 +76,7 @@ require (
 	github.com/lensesio/tableprinter v0.0.0-20201125135848-89e81fc956e7
 	github.com/mazznoer/csscolorparser v0.1.3
 	github.com/mitchellh/mapstructure v1.5.0
-	github.com/modelcontextprotocol/go-sdk v1.4.1
+	github.com/modelcontextprotocol/go-sdk v1.8.0
 	github.com/openai/openai-go/v3 v3.17.0
 	github.com/orbcorp/orb-go v1.32.0
 	github.com/paulmach/orb v0.12.0
@@ -294,7 +294,7 @@ require (
 	github.com/godbus/dbus v0.0.0-20190726142602-4481cbc300e2 // indirect
 	github.com/gofrs/flock v0.13.0 // indirect
 	github.com/gogo/protobuf v1.3.2 // indirect
-	github.com/golang-jwt/jwt/v5 v5.3.0 // indirect
+	github.com/golang-jwt/jwt/v5 v5.3.1 // indirect
 	github.com/golang/glog v1.2.5 // indirect
 	github.com/golang/groupcache v0.0.0-20241129210726-2c02b8208cf8 // indirect
 	github.com/golang/protobuf v1.5.4 // indirect
@@ -429,7 +429,7 @@ require (
 	golang.org/x/crypto v0.55.0 // indirect
 	golang.org/x/mod v0.40.0 // indirect
 	golang.org/x/telemetry v0.0.0-20260811182544-a038080d80e5 // indirect
-	golang.org/x/time v0.14.0 // indirect
+	golang.org/x/time v0.15.0 // indirect
 	golang.org/x/tools v0.49.0 // indirect
 	golang.org/x/xerrors v0.0.0-20240903120638-7835f813f4da // indirect
 	google.golang.org/genproto v0.0.0-20260128011058-8636f8732409 // indirect
diff --git a/go.sum b/go.sum
index e40f10a5f51..8d42489889c 100644
--- a/go.sum
+++ b/go.sum
@@ -1461,8 +1461,8 @@ github.com/gogo/protobuf v1.3.2/go.mod h1:P1XiOD3dCwIKUDQYPy72D8LYyHL2YPYrpS2s69
 github.com/golang-jwt/jwt/v4 v4.4.2/go.mod h1:m21LjoU+eqJr34lmDMbreY2eSTRJ1cv77w39/MY0Ch0=
 github.com/golang-jwt/jwt/v4 v4.5.2 h1:YtQM7lnr8iZ+j5q71MGKkNw9Mn7AjHM68uc9g5fXeUI=
 github.com/golang-jwt/jwt/v4 v4.5.2/go.mod h1:m21LjoU+eqJr34lmDMbreY2eSTRJ1cv77w39/MY0Ch0=
-github.com/golang-jwt/jwt/v5 v5.3.0 h1:pv4AsKCKKZuqlgs5sUmn4x8UlGa0kEVt/puTpKx9vvo=
-github.com/golang-jwt/jwt/v5 v5.3.0/go.mod h1:fxCRLWMO43lRc8nhHWY6LGqRcf+1gQWArsqaEUEa5bE=
+github.com/golang-jwt/jwt/v5 v5.3.1 h1:kYf81DTWFe7t+1VvL7eS+jKFVWaUnK9cB1qbwn63YCY=
+github.com/golang-jwt/jwt/v5 v5.3.1/go.mod h1:fxCRLWMO43lRc8nhHWY6LGqRcf+1gQWArsqaEUEa5bE=
 github.com/golang/freetype v0.0.0-20170609003504-e2365dfdc4a0/go.mod h1:E/TSTwGwJL78qG/PmXZO1EjYhfJinVAhrmmHX6Z8B9k=
 github.com/golang/glog v0.0.0-20160126235308-23def4e6c14b/go.mod h1:SBH7ygxi8pfUlaOkMMuAQtPIUF8ecWP5IEl/CR7VP2Q=
 github.com/golang/glog v1.0.0/go.mod h1:EWib/APOK0SL3dFbYqvxE3UYd8E6s1ouQ7iEp/0LWV4=
@@ -1554,8 +1554,8 @@ github.com/google/go-replayers/httpreplay v1.2.0/go.mod h1:WahEFFZZ7a1P4VM1qEeHy
 github.com/google/gofuzz v1.0.0/go.mod h1:dBl0BpW6vV/+mYPU4Po3pmUjxk6FQPldtuIdl/M65Eg=
 github.com/google/gofuzz v1.1.0/go.mod h1:dBl0BpW6vV/+mYPU4Po3pmUjxk6FQPldtuIdl/M65Eg=
 github.com/google/gofuzz v1.2.0/go.mod h1:dBl0BpW6vV/+mYPU4Po3pmUjxk6FQPldtuIdl/M65Eg=
-github.com/google/jsonschema-go v0.4.2 h1:tmrUohrwoLZZS/P3x7ex0WAVknEkBZM46iALbcqoRA8=
-github.com/google/jsonschema-go v0.4.2/go.mod h1:r5quNTdLOYEz95Ru18zA0ydNbBuYoo9tgaYcxEYhJVE=
+github.com/google/jsonschema-go v0.4.3 h1:/DBOLZTfDow7pe2GmaJNhltueGTtDKICi8V8p+DQPd0=
+github.com/google/jsonschema-go v0.4.3/go.mod h1:r5quNTdLOYEz95Ru18zA0ydNbBuYoo9tgaYcxEYhJVE=
 github.com/google/martian v2.1.0+incompatible h1:/CP5g8u/VJHijgedC/Legn3BAbAaWPgecwXBIDzw5no=
 github.com/google/martian v2.1.0+incompatible/go.mod h1:9I4somxYTbIHy5NJKHRl3wXiIaQGbYVAs8BPL6v8lEs=
 github.com/google/martian/v3 v3.0.0/go.mod h1:y5Zk1BBys9G+gd6Jrk0W3cC1+ELVxBWuIGO+w/tUAp0=
@@ -1997,8 +1997,8 @@ github.com/moby/term v0.0.0-20210610120745-9d4ed1856297/go.mod h1:vgPCkQMyxTZ7ID
 github.com/moby/term v0.0.0-20210619224110-3f7ff695adc6/go.mod h1:E2VnQOmVuvZB6UYnnDB0qG5Nq/1tD9acaOpo6xmt0Kw=
 github.com/moby/term v0.5.2 h1:6qk3FJAFDs6i/q3W/pQ97SX192qKfZgGjCQqfCJkgzQ=
 github.com/moby/term v0.5.2/go.mod h1:d3djjFCrjnB+fl8NJux+EJzu0msscUP+f8it8hPkFLc=
-github.com/modelcontextprotocol/go-sdk v1.4.1 h1:M4x9GyIPj+HoIlHNGpK2hq5o3BFhC+78PkEaldQRphc=
-github.com/modelcontextprotocol/go-sdk v1.4.1/go.mod h1:Bo/mS87hPQqHSRkMv4dQq1XCu6zv4INdXnFZabkNU6s=
+github.com/modelcontextprotocol/go-sdk v1.8.0 h1:KIvahhYqwtbeniWVPs3TcXEA7b8jEtwfBpOTAI+Urx4=
+github.com/modelcontextprotocol/go-sdk v1.8.0/go.mod h1:dL7u98E/zjJTGzEq+j30jQ8K2k1mb6LeAH4inEcSGts=
 github.com/modern-go/concurrent v0.0.0-20180228061459-e0a39a4cb421/go.mod h1:6dJC0mAP4ikYIbvyc7fijjWJddQyLn8Ig3JB5CqoB9Q=
 github.com/modern-go/concurrent v0.0.0-20180306012644-bacd9c7ef1dd h1:TRLaZ9cD/w8PVh93nsPXa1VrQ6jlwL5oN8l14QlcNfg=
 github.com/modern-go/concurrent v0.0.0-20180306012644-bacd9c7ef1dd/go.mod h1:6dJC0mAP4ikYIbvyc7fijjWJddQyLn8Ig3JB5CqoB9Q=
@@ -3031,8 +3031,8 @@ golang.org/x/time v0.0.0-20210723032227-1f47c861a9ac/go.mod h1:tRJNPiyCQ0inRvYxb
 golang.org/x/time v0.0.0-20220922220347-f3bd1da661af/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
 golang.org/x/time v0.1.0/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
 golang.org/x/time v0.3.0/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
-golang.org/x/time v0.14.0 h1:MRx4UaLrDotUKUdCIqzPC48t1Y9hANFKIRpNx+Te8PI=
-golang.org/x/time v0.14.0/go.mod h1:eL/Oa2bBBK0TkX57Fyni+NgnyQQN4LitPmob2Hjnqw4=
+golang.org/x/time v0.15.0 h1:bbrp8t3bGUeFOx08pvsMYRTCVSMk89u4tKbNOZbp88U=
+golang.org/x/time v0.15.0/go.mod h1:Y4YMaQmXwGQZoFaVFk4YpCt4FLQMYKZe9oeV/f4MSno=
 golang.org/x/tools v0.0.0-20180221164845-07fd8470d635/go.mod h1:n7NCudcB/nEzxVGmLbDWY5pfWTLqBcC2KZ6jyYvM4mQ=
 golang.org/x/tools v0.0.0-20180525024113-a5b4c53f6e8b/go.mod h1:n7NCudcB/nEzxVGmLbDWY5pfWTLqBcC2KZ6jyYvM4mQ=
 golang.org/x/tools v0.0.0-20180917221912-90fa682c2a6e/go.mod h1:n7NCudcB/nEzxVGmLbDWY5pfWTLqBcC2KZ6jyYvM4mQ=
diff --git a/runtime/ai/mcp.go b/runtime/ai/mcp.go
index 378d35c9254..ed1e4c6cf28 100644
--- a/runtime/ai/mcp.go
+++ b/runtime/ai/mcp.go
@@ -6,6 +6,7 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
+	"strings"
 
 	"github.com/google/jsonschema-go/jsonschema"
 	"github.com/modelcontextprotocol/go-sdk/jsonrpc"
@@ -115,11 +116,7 @@ func (s *Session) MCPServer(ctx context.Context) *mcp.Server {
 	srv.AddReceivingMiddleware(func(next mcp.MethodHandler) mcp.MethodHandler {
 		return func(ctx context.Context, method string, req mcp.Request) (mcp.Result, error) {
 			res, err := next(ctx, method, req)
-			if method != "tools/call" || err == nil {
-				return res, err
-			}
-			var jsonrpcErr *jsonrpc.Error
-			if !errors.As(err, &jsonrpcErr) || jsonrpcErr.Code != jsonrpc.CodeInvalidParams {
+			if method != "tools/call" || !isMCPInputValidationFailure(res, err) {
 				return res, err
 			}
 			if !s.coerceMCPToolArgs(req) {
@@ -151,6 +148,22 @@ func (s *Session) MCPServer(ctx context.Context) *mcp.Server {
 	return srv
 }
 
+// isMCPInputValidationFailure reports whether a tools/call outcome is the SDK rejecting the arguments against the tool's input schema.
+// Older SDK versions reported this as an "invalid params" protocol error; since go-sdk v1.7 it is a tool error result whose text
+// starts with the SDK's validation prefix. Genuine tool errors never carry that prefix, so they are not retried.
+func isMCPInputValidationFailure(res mcp.Result, err error) bool {
+	if err != nil {
+		var jsonrpcErr *jsonrpc.Error
+		return errors.As(err, &jsonrpcErr) && jsonrpcErr.Code == jsonrpc.CodeInvalidParams
+	}
+	ctr, ok := res.(*mcp.CallToolResult)
+	if !ok || !ctr.IsError || len(ctr.Content) == 0 {
+		return false
+	}
+	text, ok := ctr.Content[0].(*mcp.TextContent)
+	return ok && strings.HasPrefix(text.Text, `validating "arguments"`)
+}
+
 // coerceMCPToolArgs rewrites a tool call's raw arguments,
 // JSON-decoding any string values in positions where the tool's input schema expects an object or array.
 // It returns whether the arguments were rewritten.
diff --git a/runtime/server/mcp_test.go b/runtime/server/mcp_test.go
index e19d744cd25..1c56c5b5534 100644
--- a/runtime/server/mcp_test.go
+++ b/runtime/server/mcp_test.go
@@ -108,9 +108,12 @@ explore:
 	require.Contains(t, mvsText, "mv1")
 	require.Contains(t, mvsText, "mv2")
 
-	// Test that it handles missing parameters
-	_, err = conn.CallTool(t.Context(), &mcp.CallToolParams{Name: ai.GetMetricsViewName})
-	require.ErrorContains(t, err, "missing properties")
+	// Test that it handles missing parameters.
+	// Since go-sdk v1.7, input validation failures are reported as tool errors rather than protocol errors.
+	missing, err := conn.CallTool(t.Context(), &mcp.CallToolParams{Name: ai.GetMetricsViewName})
+	require.NoError(t, err)
+	require.True(t, missing.IsError)
+	require.Contains(t, missing.Content[0].(*mcp.TextContent).Text, "missing properties")
 
 	// Test a query with object/array-typed arguments sent as JSON-encoded strings.
 	// Some MCP clients stringify nested arguments (see https://github.com/anthropics/claude-code/issues/25865);
@@ -156,7 +159,7 @@ explore:
 	require.Contains(t, resText, "row_count_prev")
 
 	// Test that a string that is not valid JSON still fails schema validation
-	_, err = conn.CallTool(t.Context(), &mcp.CallToolParams{
+	invalid, err := conn.CallTool(t.Context(), &mcp.CallToolParams{
 		Name: ai.QueryMetricsViewName,
 		Arguments: map[string]any{
 			"metrics_view": "mv1",
@@ -164,7 +167,9 @@ explore:
 			"time_range":   "last 7 days",
 		},
 	})
-	require.ErrorContains(t, err, `want "object"`)
+	require.NoError(t, err)
+	require.True(t, invalid.IsError)
+	require.Contains(t, invalid.Content[0].(*mcp.TextContent).Text, `want "object"`)
 }
 
 // TestMCPSkillTools asserts that the skill tools are advertised to callers that can use AI, and only to them.