diff --git a/litellm/proxy/_experimental/mcp_server/openapi_to_mcp_generator.py b/litellm/proxy/_experimental/mcp_server/openapi_to_mcp_generator.py
index 72288f8e673..96ab4423d94 100644
--- a/litellm/proxy/_experimental/mcp_server/openapi_to_mcp_generator.py
+++ b/litellm/proxy/_experimental/mcp_server/openapi_to_mcp_generator.py
@@ -3,7 +3,9 @@ This module is used to generate MCP tools from OpenAPI specs.
 """
 
 import json
+from pathlib import PurePosixPath
 from typing import Any, Dict, Optional
+from urllib.parse import quote
 
 import httpx
 
@@ -17,6 +19,29 @@ BASE_URL = ""
 HEADERS: Dict[str, str] = {}
 
 
+def _sanitize_path_parameter_value(param_value: Any, param_name: str) -> str:
+    """Ensure path params cannot introduce directory traversal."""
+    if param_value is None:
+        return ""
+
+    value_str = str(param_value)
+    if value_str == "":
+        return ""
+
+    normalized_value = value_str.replace("\\", "/")
+    if "/" in normalized_value:
+        raise ValueError(
+            f"Path parameter '{param_name}' must not contain path separators"
+        )
+
+    if any(part in {".", ".."} for part in PurePosixPath(normalized_value).parts):
+        raise ValueError(
+            f"Path parameter '{param_name}' cannot include '.' or '..' segments"
+        )
+
+    return quote(value_str, safe="")
+
+
 def load_openapi_spec(filepath: str) -> Dict[str, Any]:
     """Load OpenAPI specification from JSON file."""
     with open(filepath, "r") as f:
@@ -142,7 +167,12 @@ async def tool_function({params_str}) -> str:
     for param_name in path_param_names:
         param_value = locals().get(param_name, "")
         if param_value:
-            url = url.replace("{{" + param_name + "}}", str(param_value))
+            # url = url.replace("{{" + param_name + "}}", str(param_value))
+            try:
+                safe_value = _sanitize_path_parameter_value(param_value, param_name)
+            except ValueError as exc:
+                return "Invalid path parameter: " + str(exc)
+            url = url.replace("{{" + param_name + "}}", safe_value)
     
     # Build query params
     query_param_names = {query_params}
@@ -192,6 +222,7 @@ async def tool_function({params_str}) -> str:
         "base_url": base_url,
         "path": path,
         "method": method,
+        "_sanitize_path_parameter_value": _sanitize_path_parameter_value,
     }
     exec(func_code, local_vars)
 
diff --git a/tests/test_litellm/proxy/_experimental/mcp_server/test_openapi_to_mcp_generator.py b/tests/test_litellm/proxy/_experimental/mcp_server/test_openapi_to_mcp_generator.py
new file mode 100644
index 00000000000..b51ca27700e
--- /dev/null
+++ b/tests/test_litellm/proxy/_experimental/mcp_server/test_openapi_to_mcp_generator.py
@@ -0,0 +1,101 @@
+"""Tests for OpenAPI to MCP generator path handling."""
+
+import pytest
+
+from litellm.proxy._experimental.mcp_server.openapi_to_mcp_generator import (
+    create_tool_function,
+)
+
+
+class _DummyResponse:
+    def __init__(self, text: str = "ok"):
+        self.text = text
+
+
+class _DummyAsyncClient:
+    """Minimal async client stub that records requests."""
+
+    last_instance = None
+
+    def __init__(self):
+        self.requests = []
+        _DummyAsyncClient.last_instance = self
+
+    async def __aenter__(self):
+        return self
+
+    async def __aexit__(self, exc_type, exc, tb):
+        return False
+
+    async def get(self, url, params=None, headers=None):
+        self.requests.append(("get", url, params, headers))
+        return _DummyResponse("dummy-response")
+
+
+@pytest.mark.asyncio
+async def test_should_reject_path_traversal_inputs(monkeypatch):
+    monkeypatch.setattr(
+        "litellm.proxy._experimental.mcp_server.openapi_to_mcp_generator.httpx.AsyncClient",
+        _DummyAsyncClient,
+    )
+    _DummyAsyncClient.last_instance = None
+
+    operation = {
+        "parameters": [
+            {
+                "name": "filename",
+                "in": "path",
+                "required": True,
+                "schema": {"type": "string"},
+            }
+        ]
+    }
+
+    tool_function = create_tool_function(
+        path="/files/{filename}",
+        method="GET",
+        operation=operation,
+        base_url="https://example.com",
+    )
+
+    response = await tool_function(filename="../admin")
+
+    assert "Invalid path parameter" in response
+
+
+@pytest.mark.asyncio
+async def test_should_encode_and_request_safe_path_parameters(monkeypatch):
+    monkeypatch.setattr(
+        "litellm.proxy._experimental.mcp_server.openapi_to_mcp_generator.httpx.AsyncClient",
+        _DummyAsyncClient,
+    )
+    _DummyAsyncClient.last_instance = None
+
+    operation = {
+        "parameters": [
+            {
+                "name": "filename",
+                "in": "path",
+                "required": True,
+                "schema": {"type": "string"},
+            }
+        ]
+    }
+
+    tool_function = create_tool_function(
+        path="/files/{filename}",
+        method="GET",
+        operation=operation,
+        base_url="https://example.com",
+    )
+
+    response = await tool_function(filename="report 2024.json")
+
+    assert response == "dummy-response"
+
+    dummy_client = _DummyAsyncClient.last_instance
+    assert dummy_client is not None
+    method, url, params, headers = dummy_client.requests[0]
+    assert method == "get"
+    assert url == "https://example.com/files/report%202024.json"
+    assert params == {}