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+# Semantic MCP Tool Auto-Filtering - Implementation Plan
+
+## Overview
+
+Filter MCP tools semantically before LLM inference to reduce context window bloat and improve tool selection accuracy. Leverage the existing LiteLLM semantic router infrastructure.
+
+## Architecture
+
+```
+User Prompt → Embed Query → Semantic Search (Tool Index) → Filtered Tools → LLM
+```
+
+## Components
+
+### 1. MCP Tool Embedding Index
+
+**Location:** `litellm/proxy/_experimental/mcp_server/tool_embedding_index.py`
+
+- Store tool embeddings with metadata (name, description, server_id)
+- Support configurable embedding model via `LiteLLMRouterEncoder`
+- Hash tool descriptions to detect changes
+
+**Schema (in-memory + DB persistence):**
+```python
+class MCPToolEmbedding:
+    tool_name: str
+    server_id: str
+    description: str
+    description_hash: str
+    embedding: List[float]
+    updated_at: datetime
+```
+
+### 2. Embedding Lifecycle Management
+
+**When to create/update embeddings:**
+
+| Event | Action |
+|-------|--------|
+| Proxy startup | Load from DB; generate missing |
+| MCP server added (runtime) | Generate embeddings for new tools |
+| MCP server updated | Re-embed if description_hash changed |
+| MCP server removed | Delete embeddings |
+| Periodic sync | Background task to catch drift |
+
+**Integration points:**
+- `MCPServerManager.add_server()` → trigger embedding generation
+- `MCPServerManager.update_server()` → check hash, re-embed if needed
+- `MCPServerManager.remove_server()` → delete embeddings
+
+### 3. Persistence Layer
+
+**Database table:** `LiteLLM_MCPToolEmbedding`
+
+```sql
+CREATE TABLE LiteLLM_MCPToolEmbedding (
+    id UUID PRIMARY KEY,
+    tool_name VARCHAR NOT NULL,
+    server_id VARCHAR NOT NULL,
+    description TEXT,
+    description_hash VARCHAR,
+    embedding BYTEA,  -- serialized float array
+    updated_at TIMESTAMP,
+    UNIQUE(tool_name, server_id)
+);
+```
+
+**Prisma schema addition:** `litellm/proxy/schema.prisma`
+
+### 4. Semantic Filter Hook
+
+**Location:** `litellm/proxy/_experimental/mcp_server/semantic_tool_filter.py`
+
+```python
+class SemanticMCPToolFilter:
+    def __init__(
+        self,
+        embedding_model: str,
+        router_instance: Router,
+        top_k: int = 10,
+        similarity_threshold: float = 0.3,
+    ):
+        self.encoder = LiteLLMRouterEncoder(router_instance, embedding_model)
+        self.index = MCPToolEmbeddingIndex()
+    
+    async def filter_tools(
+        self,
+        user_query: str,
+        available_tools: List[MCPTool],
+    ) -> List[MCPTool]:
+        # 1. Embed user query
+        # 2. Compute similarities against tool index
+        # 3. Return top-k or above threshold
+```
+
+### 5. Integration with Existing Flows
+
+**Option A: Pre-call hook (recommended)**
+- Hook into `list_tools()` flow when tools are being injected
+- Intercept at `proxy_server.py` `/chat/completions` before tool injection
+
+**Option B: New endpoint parameter**
+- Add `semantic_tool_filter: bool` to `/chat/completions`
+- Add `tool_filter_top_k` and `tool_filter_threshold` params
+
+### 6. Configuration
+
+**Config YAML:**
+```yaml
+litellm_settings:
+  mcp_semantic_tool_filter:
+    enabled: true
+    embedding_model: "openai/text-embedding-3-small"
+    top_k: 10
+    similarity_threshold: 0.3
+    cache_embeddings: true
+```
+
+## Implementation Order
+
+1. **MCPToolEmbeddingIndex** - In-memory index with CRUD ops
+2. **Database persistence** - Prisma schema + read/write
+3. **Embedding generation hooks** - Integrate with MCPServerManager
+4. **SemanticMCPToolFilter** - Query-time filtering logic
+5. **Proxy integration** - Wire into `/chat/completions` flow
+6. **Tests** - Unit + integration tests
+
+## Key Design Decisions
+
+- **Reuse `LiteLLMRouterEncoder`** from existing semantic router
+- **Hash-based change detection** for efficient updates
+- **Async embedding generation** to not block server startup
+- **Graceful degradation** - return all tools if embedding fails
+
+## Files to Modify/Create
+
+| File | Action |
+|------|--------|
+| `litellm/proxy/schema.prisma` | Add MCPToolEmbedding table |
+| `litellm/proxy/_experimental/mcp_server/tool_embedding_index.py` | New - index class |
+| `litellm/proxy/_experimental/mcp_server/semantic_tool_filter.py` | New - filter logic |
+| `litellm/proxy/_experimental/mcp_server/mcp_server_manager.py` | Hook embedding lifecycle |
+| `litellm/proxy/proxy_server.py` | Integrate filter at completion endpoint |
+| `litellm/proxy/_types.py` | Add config types |
+| `tests/proxy_unit_tests/test_mcp_semantic_filter.py` | New - tests |