diff --git a/apps/dbagent/src/app/(main)/projects/[project]/mcp/[server]/page.tsx b/apps/dbagent/src/app/(main)/projects/[project]/mcp/[server]/page.tsx
index cf726f58..a51b5d57 100644
--- a/apps/dbagent/src/app/(main)/projects/[project]/mcp/[server]/page.tsx
+++ b/apps/dbagent/src/app/(main)/projects/[project]/mcp/[server]/page.tsx
@@ -1,10 +1,6 @@
-import { promises as fs } from 'fs';
 import { notFound } from 'next/navigation';
-import path from 'path';
-import { actionGetUserMcpServer } from '~/components/mcp/action';
 import { McpView } from '~/components/mcp/mcp-view';
-import { getMCPSourceDir } from '~/lib/ai/tools/user-mcp';
-import { MCPServerInsert } from '~/lib/db/schema';
+import { findServerOnDisk } from '~/lib/db/mcp-servers';
 
 type PageParams = {
   project: string;
@@ -13,57 +9,8 @@ type PageParams = {
 
 export default async function McpServerPage({ params }: { params: Promise<PageParams> }) {
   const { server: serverId } = await params;
-  const mcpSourceDir = getMCPSourceDir();
-
-  // Check if server file exists locally
-  const filePath = path.join(mcpSourceDir, `${serverId}.ts`);
-  let server: MCPServerInsert | null = null;
-
-  try {
-    // Try to read the local file first
-    await fs.access(filePath);
-    const content = await fs.readFile(filePath, 'utf-8');
-
-    // Extract metadata from file content
-    const nameMatch = content.match(/name:\s*['"]([^'"]+)['"]/);
-    const versionMatch = content.match(/version:\s*['"]([^'"]+)['"]/);
-
-    server = {
-      name: serverId,
-      serverName: nameMatch?.[1] ?? serverId,
-      version: versionMatch?.[1] ?? '1.0.0',
-      filePath: `${serverId}.ts`,
-      enabled: false
-    };
-
-    // Try to get additional data from database if it exists
-    try {
-      const dbServer = await actionGetUserMcpServer(serverId);
-      if (dbServer && server) {
-        server.enabled = dbServer.enabled;
-      }
-    } catch (error) {
-      // Ignore database errors, we'll use the local file data
-      console.error('Error fetching server from database:', error);
-    }
-  } catch (error) {
-    // If local file doesn't exist, try database
-    try {
-      const dbServer = await actionGetUserMcpServer(serverId);
-      if (dbServer) {
-        server = {
-          name: dbServer.name,
-          serverName: dbServer.serverName,
-          version: dbServer.version,
-          filePath: dbServer.filePath,
-          enabled: dbServer.enabled
-        };
-      }
-    } catch (error) {
-      console.error('Error fetching server from database:', error);
-    }
-  }
 
+  const server = await findServerOnDisk(serverId);
   if (!server) {
     notFound();
   }
diff --git a/apps/dbagent/src/app/(main)/projects/[project]/mcp/create/page.tsx b/apps/dbagent/src/app/(main)/projects/[project]/mcp/create/page.tsx
deleted file mode 100644
index 1fd33557..00000000
--- a/apps/dbagent/src/app/(main)/projects/[project]/mcp/create/page.tsx
+++ /dev/null
@@ -1,125 +0,0 @@
-'use client';
-
-import { Button } from '@xata.io/components';
-import { UploadIcon } from 'lucide-react';
-import { useRouter } from 'next/navigation';
-import { useCallback, useState } from 'react';
-
-export default function CreateMcpPage() {
-  const router = useRouter();
-  const [isSubmitting, setIsSubmitting] = useState(false);
-  const [isDragging, setIsDragging] = useState(false);
-  const [file, setFile] = useState<File | null>(null);
-  const [error, setError] = useState<string | null>(null);
-
-  const validateFile = (file: File): boolean => {
-    if (!file.name.endsWith('.ts')) {
-      setError('Only TypeScript (.ts) files are allowed');
-      return false;
-    }
-    setError(null);
-    return true;
-  };
-
-  const handleDragOver = useCallback((e: React.DragEvent) => {
-    e.preventDefault();
-    setIsDragging(true);
-  }, []);
-
-  const handleDragLeave = useCallback((e: React.DragEvent) => {
-    e.preventDefault();
-    setIsDragging(false);
-  }, []);
-
-  const handleDrop = useCallback((e: React.DragEvent) => {
-    e.preventDefault();
-    setIsDragging(false);
-
-    const droppedFile = e.dataTransfer.files[0];
-    if (droppedFile && validateFile(droppedFile)) {
-      setFile(droppedFile);
-    }
-  }, []);
-
-  const handleFileSelect = useCallback((e: React.ChangeEvent<HTMLInputElement>) => {
-    const selectedFile = e.target.files?.[0];
-    if (selectedFile && validateFile(selectedFile)) {
-      setFile(selectedFile);
-    }
-  }, []);
-
-  const handleSubmit = async () => {
-    if (!file) return;
-
-    setIsSubmitting(true);
-    setError(null);
-
-    try {
-      const formData = new FormData();
-      formData.append('file', file);
-
-      const response = await fetch('/api/mcp/servers/upload', {
-        method: 'POST',
-        body: formData
-      });
-
-      if (!response.ok) {
-        const errorData = await response.json();
-        throw new Error(errorData.message || 'Failed to upload file');
-      }
-
-      router.back();
-    } catch (error) {
-      console.error('Error uploading file:', error);
-      setError(error instanceof Error ? error.message : 'Failed to upload file');
-    } finally {
-      setIsSubmitting(false);
-    }
-  };
-
-  return (
-    <div className="container">
-      <div className="mb-8">
-        <h1 className="text-2xl font-bold">Create MCP Server</h1>
-        <p className="text-muted-foreground mt-2">Upload a TypeScript file to create a new MCP server.</p>
-      </div>
-
-      <div className="space-y-6">
-        <div
-          className={`rounded-lg border-2 border-dashed p-8 text-center ${
-            isDragging ? 'border-primary bg-primary/5' : 'border-muted-foreground'
-          } ${error ? 'border-destructive' : ''}`}
-          onDragOver={handleDragOver}
-          onDragLeave={handleDragLeave}
-          onDrop={handleDrop}
-        >
-          <div className="flex flex-col items-center justify-center gap-4">
-            <UploadIcon className="text-muted-foreground h-8 w-8" />
-            <div className="text-muted-foreground text-sm">
-              {file ? (
-                <p>Selected file: {file.name}</p>
-              ) : (
-                <p>Drag and drop a TypeScript file here, or click to select</p>
-              )}
-            </div>
-            <input type="file" accept=".ts" onChange={handleFileSelect} className="hidden" id="file-upload" />
-            <Button variant="outline" onClick={() => document.getElementById('file-upload')?.click()}>
-              Select File
-            </Button>
-          </div>
-        </div>
-
-        {error && <div className="text-destructive text-center text-sm">{error}</div>}
-
-        <div className="flex justify-end gap-4">
-          <Button type="button" variant="outline" onClick={() => router.back()} disabled={isSubmitting}>
-            Cancel
-          </Button>
-          <Button onClick={handleSubmit} disabled={isSubmitting || !file || !!error}>
-            {isSubmitting ? 'Uploading...' : 'Upload MCP Server'}
-          </Button>
-        </div>
-      </div>
-    </div>
-  );
-}
diff --git a/apps/dbagent/src/app/api/mcp/servers/[server]/route.ts b/apps/dbagent/src/app/api/mcp/servers/[server]/route.ts
index f753b798..309e14fb 100644
--- a/apps/dbagent/src/app/api/mcp/servers/[server]/route.ts
+++ b/apps/dbagent/src/app/api/mcp/servers/[server]/route.ts
@@ -1,39 +1,13 @@
-import { promises as fs } from 'fs';
 import { NextResponse } from 'next/server';
-import path from 'path';
-import { getMCPSourceDir } from '~/lib/ai/tools/user-mcp';
-
-const mcpSourceDir = getMCPSourceDir();
+import { findServerOnDisk } from '~/lib/db/mcp-servers';
 
 export async function GET(_: Request, { params }: { params: Promise<{ server: string }> }) {
   try {
     const { server } = await params;
-    const filePath = path.join(mcpSourceDir, `${server}.ts`);
-
-    // Check if file exists
-    try {
-      await fs.access(filePath);
-    } catch (error) {
+    const metadata = await findServerOnDisk(server);
+    if (!metadata) {
       return NextResponse.json({ error: 'Server file not found' }, { status: 404 });
     }
-
-    // Read file content
-    const content = await fs.readFile(filePath, 'utf-8');
-
-    // Extract metadata from file content
-    const nameMatch = content.match(/name:\s*['"]([^'"]+)['"]/);
-    const versionMatch = content.match(/version:\s*['"]([^'"]+)['"]/);
-    const descriptionMatch = content.match(/description:\s*['"]([^'"]+)['"]/);
-
-    const metadata = {
-      name: server,
-      serverName: nameMatch ? nameMatch[1] : server,
-      version: versionMatch ? versionMatch[1] : '1.0.0',
-      description: descriptionMatch ? descriptionMatch[1] : '',
-      filePath: `${server}.ts`,
-      enabled: false
-    };
-
     return NextResponse.json(metadata);
   } catch (error) {
     console.error('Error reading server file:', error);
diff --git a/apps/dbagent/src/app/api/mcp/servers/route.ts b/apps/dbagent/src/app/api/mcp/servers/route.ts
index 10f50d24..e98c9988 100644
--- a/apps/dbagent/src/app/api/mcp/servers/route.ts
+++ b/apps/dbagent/src/app/api/mcp/servers/route.ts
@@ -1,29 +1,19 @@
 import { promises as fs } from 'fs';
 import { NextResponse } from 'next/server';
-import path from 'path';
-import { getMCPSourceDir } from '~/lib/ai/tools/user-mcp';
+import { getMCPServersDir } from '~/lib/ai/tools/user-mcp';
 
-const mcpSourceDir = getMCPSourceDir();
+const mcpServersDir = getMCPServersDir();
 
 export async function GET() {
   try {
-    const files = await fs.readdir(mcpSourceDir);
-    const serverFiles = files.filter((file) => file.endsWith('.ts') && !file.endsWith('.d.ts'));
+    const files = await fs.readdir(mcpServersDir);
+    const serverFiles = files.filter((file) => file.endsWith('.js'));
 
     const servers = await Promise.all(
       serverFiles.map(async (file) => {
-        const filePath = path.join(mcpSourceDir, file);
-        const content = await fs.readFile(filePath, 'utf-8');
-
-        // Extract server name and version from the file content
-        const nameMatch = content.match(/name:\s*['"]([^'"]+)['"]/);
-        const versionMatch = content.match(/version:\s*['"]([^'"]+)['"]/);
-
         return {
-          name: path.basename(file, '.ts'),
-          serverName: nameMatch ? nameMatch[1] : path.basename(file, '.ts'),
-          version: versionMatch ? versionMatch[1] : '1.0.0',
-          filePath: file,
+          name: file.endsWith('.js') ? file.slice(0, -3) : file,
+          serverName: file,
           enabled: false
         };
       })
diff --git a/apps/dbagent/src/app/api/mcp/servers/upload/route.ts b/apps/dbagent/src/app/api/mcp/servers/upload/route.ts
deleted file mode 100644
index af55236e..00000000
--- a/apps/dbagent/src/app/api/mcp/servers/upload/route.ts
+++ /dev/null
@@ -1,52 +0,0 @@
-import { exec } from 'child_process';
-import { promises as fs } from 'fs';
-import { NextResponse } from 'next/server';
-import path from 'path';
-import { promisify } from 'util';
-
-const execAsync = promisify(exec);
-
-export async function POST(request: Request) {
-  try {
-    const formData = await request.formData();
-    const file = formData.get('file') as File;
-
-    if (!file) {
-      return NextResponse.json({ message: 'No file provided' }, { status: 400 });
-    }
-
-    if (!file.name.endsWith('.ts')) {
-      return NextResponse.json({ message: 'Only TypeScript (.ts) files are allowed' }, { status: 400 });
-    }
-
-    // Ensure the mcp-source directory exists
-    const mcpSourceDir = path.join(process.cwd(), 'mcp-source');
-    try {
-      await fs.access(mcpSourceDir);
-    } catch {
-      throw new Error(
-        'MCP source directory does not exist. Please ensure the mcp-source directory is present in the project root.'
-      );
-    }
-
-    // Read the file content
-    const fileContent = await file.text();
-
-    // Write the file to mcp-source directory
-    const filePath = path.join(mcpSourceDir, file.name);
-    await fs.writeFile(filePath, fileContent);
-
-    // Run the build command
-    try {
-      await execAsync('pnpm build:mcp-servers');
-    } catch (buildError) {
-      console.error('Error building MCP servers:', buildError);
-      return NextResponse.json({ message: 'File uploaded but build failed' }, { status: 500 });
-    }
-
-    return NextResponse.json({ message: 'File uploaded and built successfully' }, { status: 200 });
-  } catch (error) {
-    console.error('Error uploading file:', error);
-    return NextResponse.json({ message: 'Failed to upload file' }, { status: 500 });
-  }
-}
diff --git a/apps/dbagent/src/components/aws-integration/aws-integration.tsx b/apps/dbagent/src/components/aws-integration/aws-integration.tsx
index 3931e396..39a2bb50 100644
--- a/apps/dbagent/src/components/aws-integration/aws-integration.tsx
+++ b/apps/dbagent/src/components/aws-integration/aws-integration.tsx
@@ -19,7 +19,7 @@ import {
   SelectValue,
   toast
 } from '@xata.io/components';
-import { AlertCircle, Loader2 } from 'lucide-react';
+import { Loader2 } from 'lucide-react';
 import Link from 'next/link';
 import { useEffect, useState } from 'react';
 import { RDSClusterDetailedInfo, RDSClusterInfo } from '~/lib/aws/rds';
@@ -130,7 +130,6 @@ export function AWSIntegration({ projectId, connections }: { projectId: string;
       <CardContent>
         <div className="mb-6">
           <Alert>
-            <AlertCircle className="h-4 w-4" />
             <AlertTitle>Add an IAM policy and user</AlertTitle>
             <AlertDescription>
               To obtain the Access Key ID and Secret Access Key,{' '}
diff --git a/apps/dbagent/src/components/gcp-integration/gcp-integration.tsx b/apps/dbagent/src/components/gcp-integration/gcp-integration.tsx
index b60d20b3..4d67a34d 100644
--- a/apps/dbagent/src/components/gcp-integration/gcp-integration.tsx
+++ b/apps/dbagent/src/components/gcp-integration/gcp-integration.tsx
@@ -22,7 +22,7 @@ import {
   Textarea,
   toast
 } from '@xata.io/components';
-import { AlertCircle, Loader2 } from 'lucide-react';
+import { Loader2 } from 'lucide-react';
 import Link from 'next/link';
 import { useEffect, useState } from 'react';
 import { Connection } from '~/lib/db/schema';
@@ -115,7 +115,6 @@ export function GCPIntegration({ projectId, connections }: { projectId: string;
       <CardContent>
         <div className="mb-6">
           <Alert>
-            <AlertCircle className="h-4 w-4" />
             <AlertTitle>Create a service account</AlertTitle>
             <AlertDescription>
               To create a GCP service account for the Agent, follow this guide:{' '}
diff --git a/apps/dbagent/src/components/mcp/action.ts b/apps/dbagent/src/components/mcp/action.ts
index dbab1add..6c1ea6e4 100644
--- a/apps/dbagent/src/components/mcp/action.ts
+++ b/apps/dbagent/src/components/mcp/action.ts
@@ -1,10 +1,7 @@
 'use server';
 
-import { promises as fs } from 'fs';
-import path from 'path';
-import { getMCPSourceDir, getMCPSourceDistDir } from '~/lib/ai/tools/user-mcp';
 import { getUserSessionDBAccess } from '~/lib/db/db';
-import { addUserMcpServerToDB, deleteUserMcpServer, getUserMcpServer, updateUserMcpServer } from '~/lib/db/mcp-servers';
+import { addUserMcpServerToDB, getUserMcpServer, updateUserMcpServer } from '~/lib/db/mcp-servers';
 import { MCPServer, MCPServerInsert } from '~/lib/db/schema';
 
 //playbook db insert
@@ -24,6 +21,9 @@ export async function actionCheckUserMcpServerExists(serverName: string): Promis
 }
 
 export async function actionUpdateUserMcpServer(input: MCPServerInsert) {
+  if (!input.filePath) {
+    input.filePath = `${input.name}.js`;
+  }
   const dbAccess = await getUserSessionDBAccess();
   return await updateUserMcpServer(dbAccess, input);
 }
@@ -32,37 +32,3 @@ export async function actionGetUserMcpServer(serverName: string) {
   const dbAccess = await getUserSessionDBAccess();
   return await getUserMcpServer(dbAccess, serverName);
 }
-
-export async function actionDeleteUserMcpServerFromDBAndFiles(serverName: string): Promise<void> {
-  const dbAccess = await getUserSessionDBAccess();
-
-  // Get the server details before deleting from DB
-  const server = await getUserMcpServer(dbAccess, serverName);
-  if (server) {
-    await deleteUserMcpServer(dbAccess, serverName);
-  }
-
-  // Delete the files
-  const mcpSourceDir = getMCPSourceDir();
-  const mcpSourceDistDir = getMCPSourceDistDir();
-
-  try {
-    // Delete .ts file
-    const tsFilePath = path.join(mcpSourceDir, `${serverName}.ts`);
-    await fs.unlink(tsFilePath);
-
-    // Delete .js file if it exists
-    const jsFilePath = path.join(mcpSourceDistDir, `${serverName}.js`);
-    try {
-      await fs.unlink(jsFilePath);
-    } catch (error) {
-      // Ignore error if .js file doesn't exist
-      if ((error as NodeJS.ErrnoException).code !== 'ENOENT') {
-        throw error;
-      }
-    }
-  } catch (error) {
-    console.error('Error deleting server files:', error);
-    // Don't throw the error since the DB deletion was successful
-  }
-}
diff --git a/apps/dbagent/src/components/mcp/mcp-table.tsx b/apps/dbagent/src/components/mcp/mcp-table.tsx
index e0dd9d16..45b31d54 100644
--- a/apps/dbagent/src/components/mcp/mcp-table.tsx
+++ b/apps/dbagent/src/components/mcp/mcp-table.tsx
@@ -1,13 +1,12 @@
 'use client';
 
 import {
+  Alert,
+  AlertDescription,
+  AlertTitle,
   Badge,
   Button,
   Code,
-  DropdownMenu,
-  DropdownMenuContent,
-  DropdownMenuItem,
-  DropdownMenuTrigger,
   Switch,
   Table,
   TableBody,
@@ -19,7 +18,7 @@ import {
   TooltipContent,
   TooltipTrigger
 } from '@xata.io/components';
-import { BookOpenIcon, ChevronLeftIcon, ChevronRightIcon, MoreVerticalIcon } from 'lucide-react';
+import { ChevronLeftIcon, ChevronRightIcon } from 'lucide-react';
 import Link from 'next/link';
 import { useParams, useRouter } from 'next/navigation';
 import { useEffect, useState } from 'react';
@@ -41,8 +40,6 @@ export function McpTable() {
   const { project } = useParams<{ project: string }>();
   const [currentPage, setCurrentPage] = useState(1);
 
-  const [isAddButtonDisabled, setIsAddButtonDisabled] = useState(false);
-
   const loadMcpServers = async () => {
     try {
       const response = await fetch('/api/mcp/servers');
@@ -99,10 +96,6 @@ export function McpTable() {
     void loadMcpServers();
   }, [project]);
 
-  useEffect(() => {
-    setIsAddButtonDisabled(false);
-  }, []);
-
   const SkeletonRow = () => (
     <TableRow>
       <TableCell>
@@ -124,15 +117,30 @@ export function McpTable() {
     <div>
       <div className="mb-4 flex items-center justify-between">
         <h1 className="text-2xl font-bold">MCP Servers</h1>
-        <Button onClick={() => router.push(`/projects/${project}/mcp/create`)} disabled={isAddButtonDisabled}>
-          Add MCP Server
-        </Button>
       </div>
+
+      <div className="mb-6">
+        <Alert>
+          <AlertTitle>Add custom tools via a new MCP server</AlertTitle>
+          <AlertDescription>
+            To add custom tools, you can create a new MCP server, which the Agent will run locally. To create a new MCP
+            server,{' '}
+            <Link
+              href="https://github.com/xataio/agent/wiki/Create-custom-tools-via-a-local-MCP-server"
+              target="_blank"
+              className="font-medium underline"
+            >
+              follow this guide
+            </Link>
+            .
+          </AlertDescription>
+        </Alert>
+      </div>
+
       <Table>
         <TableHeader>
           <TableRow>
             <TableHead>Sever Name</TableHead>
-            <TableHead>File</TableHead>
             <TableHead>Enabled</TableHead>
             <TableHead>Actions</TableHead>
           </TableRow>
@@ -150,7 +158,7 @@ export function McpTable() {
               <TableCell>
                 <div className="flex items-center gap-2">
                   <Code variant="default">
-                    <Link href={getMcpServerUrl(server)}>{server.serverName}</Link>
+                    <Link href={getMcpServerUrl(server)}>{server.name}</Link>
                   </Code>
                   {!mcpServerInDb[server.name] && (
                     <Tooltip>
@@ -164,26 +172,13 @@ export function McpTable() {
                   )}
                 </div>
               </TableCell>
-              <TableCell>{server.filePath}</TableCell>
               <TableCell>
                 <Switch checked={server.enabled} onCheckedChange={() => handleToggleEnabled(server)} />
               </TableCell>
               <TableCell>
-                <div className="flex gap-2">
-                  <DropdownMenu>
-                    <DropdownMenuTrigger asChild>
-                      <Button variant="outline" size="icon">
-                        <MoreVerticalIcon className="h-3 w-3" />
-                      </Button>
-                    </DropdownMenuTrigger>
-                    <DropdownMenuContent align="end">
-                      <DropdownMenuItem onClick={() => router.push(getMcpServerUrl(server))}>
-                        <BookOpenIcon className="mr-2 h-3 w-3" />
-                        View Details
-                      </DropdownMenuItem>
-                    </DropdownMenuContent>
-                  </DropdownMenu>
-                </div>
+                <Button variant="outline" size="sm" onClick={() => router.push(getMcpServerUrl(server))}>
+                  Edit
+                </Button>
               </TableCell>
             </TableRow>
           ))}
diff --git a/apps/dbagent/src/components/mcp/mcp-view.tsx b/apps/dbagent/src/components/mcp/mcp-view.tsx
index 4f9c7dc7..a6369441 100644
--- a/apps/dbagent/src/components/mcp/mcp-view.tsx
+++ b/apps/dbagent/src/components/mcp/mcp-view.tsx
@@ -4,8 +4,6 @@ import {
   Button,
   Card,
   CardContent,
-  CardDescription,
-  CardFooter,
   CardHeader,
   CardTitle,
   Input,
@@ -14,17 +12,13 @@ import {
   TooltipContent,
   TooltipTrigger
 } from '@xata.io/components';
-import { ArrowLeft, PlayCircle, PlusIcon, Trash2Icon, XIcon } from 'lucide-react';
+import { ArrowLeft, PlayCircle, PlusIcon, XIcon } from 'lucide-react';
 import Link from 'next/link';
-import { useParams, useRouter } from 'next/navigation';
+import { useParams } from 'next/navigation';
 import { useEffect, useState } from 'react';
 import { actionGetConnections, actionGetCustomToolsFromMCPServer } from '~/components/tools/action';
 import { Connection, MCPServerInsert } from '~/lib/db/schema';
-import {
-  actionCheckUserMcpServerExists,
-  actionDeleteUserMcpServerFromDBAndFiles,
-  actionUpdateUserMcpServer
-} from './action';
+import { actionCheckUserMcpServerExists, actionUpdateUserMcpServer } from './action';
 
 interface Tool {
   name: string;
@@ -34,12 +28,10 @@ interface Tool {
 
 export function McpView({ server: initialServer }: { server: MCPServerInsert }) {
   const { project } = useParams<{ project: string }>();
-  const router = useRouter();
   const [server, setServer] = useState<MCPServerInsert>(initialServer);
   const [tools, setTools] = useState<Tool[]>([]);
   const [isLoading, setIsLoading] = useState(true);
   const [error, setError] = useState<string | null>(null);
-  const [showDeleteConfirm, setShowDeleteConfirm] = useState(false);
   const [isInDb, setIsInDb] = useState<boolean>(false);
   const [isCheckingDb, setIsCheckingDb] = useState(true);
   const [envVars, setEnvVars] = useState<Record<string, string>>(initialServer.envVars || {});
@@ -82,16 +74,6 @@ export function McpView({ server: initialServer }: { server: MCPServerInsert })
     void loadData();
   }, [project, server.name, server.enabled]);
 
-  const handleDeleteServer = async () => {
-    try {
-      await actionDeleteUserMcpServerFromDBAndFiles(server.name);
-      router.push(`/projects/${project}/mcp`);
-    } catch (error) {
-      console.error('Error deleting server:', error);
-      setError('Failed to delete server. Please try again later.');
-    }
-  };
-
   const handleAddEnvVar = () => {
     setEnvVars({ ...envVars, '': '' });
   };
@@ -146,9 +128,6 @@ export function McpView({ server: initialServer }: { server: MCPServerInsert })
       <Card>
         <CardHeader>
           <CardTitle>MCP Server: {server.serverName}</CardTitle>
-          <CardDescription>
-            <p className="text-muted-foreground">Version: {server.version}</p>
-          </CardDescription>
         </CardHeader>
         <CardContent className="space-y-4">
           <div>
@@ -261,23 +240,6 @@ export function McpView({ server: initialServer }: { server: MCPServerInsert })
             )}
           </div>
         </CardContent>
-        <CardFooter className="flex justify-end gap-3 pt-6">
-          {!showDeleteConfirm ? (
-            <Button variant="destructive" onClick={() => setShowDeleteConfirm(true)}>
-              <Trash2Icon className="mr-2 h-4 w-4" />
-              Delete Server
-            </Button>
-          ) : (
-            <div className="flex gap-2">
-              <Button variant="destructive" onClick={handleDeleteServer}>
-                Confirm Delete
-              </Button>
-              <Button variant="outline" onClick={() => setShowDeleteConfirm(false)}>
-                Cancel Delete
-              </Button>
-            </div>
-          )}
-        </CardFooter>
       </Card>
     </main>
   );
diff --git a/apps/dbagent/src/components/slack-integration/slack-integration.tsx b/apps/dbagent/src/components/slack-integration/slack-integration.tsx
index d826becc..2fccf7d4 100644
--- a/apps/dbagent/src/components/slack-integration/slack-integration.tsx
+++ b/apps/dbagent/src/components/slack-integration/slack-integration.tsx
@@ -15,7 +15,6 @@ import {
   toast,
   useForm
 } from '@xata.io/components';
-import { AlertCircle } from 'lucide-react';
 import Link from 'next/link';
 import { useEffect, useState } from 'react';
 import { actionGetWebhookUrl, actionSaveWebhookUrl } from './actions';
@@ -73,7 +72,6 @@ export function SlackIntegration({ projectId }: { projectId: string }) {
       <CardContent>
         <div className="mb-6">
           <Alert>
-            <AlertCircle className="h-4 w-4" />
             <AlertTitle>Create a Slack Webhook</AlertTitle>
             <AlertDescription>
               To create an incoming webhook for posting to your Slack workspace,{' '}
diff --git a/apps/dbagent/src/components/ui/side-nav.tsx b/apps/dbagent/src/components/ui/side-nav.tsx
index 0a867416..456a1f5a 100644
--- a/apps/dbagent/src/components/ui/side-nav.tsx
+++ b/apps/dbagent/src/components/ui/side-nav.tsx
@@ -36,7 +36,6 @@ import {
   AlarmClock,
   CloudIcon,
   DatabaseIcon,
-  Drill,
   HistoryIcon,
   MessageSquare,
   MoreVertical,
@@ -202,12 +201,6 @@ export function SideNav({ className, project, onboardingComplete }: SideNavProps
       icon: NotebookPen,
       className: 'text-sm'
     },
-    {
-      title: 'Tools',
-      url: `${basePath}/tools`,
-      icon: Drill,
-      className: 'text-sm'
-    },
     {
       title: 'MCP',
       url: `${basePath}/mcp`,
diff --git a/apps/dbagent/src/lib/ai/tools/user-mcp.ts b/apps/dbagent/src/lib/ai/tools/user-mcp.ts
index 5332b6d8..3a29ec16 100644
--- a/apps/dbagent/src/lib/ai/tools/user-mcp.ts
+++ b/apps/dbagent/src/lib/ai/tools/user-mcp.ts
@@ -5,20 +5,15 @@ import path from 'path';
 import { actionGetUserMcpServer } from '~/components/mcp/action';
 import { env } from '~/lib/env/server';
 
-export function getMCPSourceDistDir() {
-  const baseDir = env.MCP_SOURCE_DIR || 'mcp-source';
-  return path.join(process.cwd(), baseDir, 'dist');
-}
-
-export function getMCPSourceDir() {
-  const baseDir = env.MCP_SOURCE_DIR || 'mcp-source';
+export function getMCPServersDir() {
+  const baseDir = env.MCP_SERVERS_DIR || 'mcp-source/dist';
   return path.join(process.cwd(), baseDir);
 }
 
 async function listMCPTools(): Promise<ToolSet> {
   //gets all the enabled mcp servers tools by checking the enabled status from the db
   try {
-    const mcpSourceDistDir = getMCPSourceDistDir();
+    const mcpSourceDistDir = getMCPServersDir();
     const files = await fs.readdir(mcpSourceDistDir);
     const mcpServerFiles = files.filter((file) => file.endsWith('.js'));
 
@@ -48,10 +43,10 @@ async function listMCPTools(): Promise<ToolSet> {
 
 async function getMCPToolForServer(serverFileName: string): Promise<ToolSet> {
   try {
-    const mcpSourceDistDir = getMCPSourceDistDir();
-    //only gets tools for a certain mcp server if a serverFileName is provided
-    //used in mcp-view when getting mcp tools for non-enabled servers that are not in the db
-    //later when in mcp-view the tools are allowed to be ran only if the mcp server is enabled
+    const mcpSourceDistDir = getMCPServersDir();
+    // only gets tools for a certain mcp server if a serverFileName is provided
+    // used in mcp-view when getting mcp tools for non-enabled servers that are not in the db
+    // later when in mcp-view the tools are allowed to be ran only if the mcp server is enabled
     const filePath = path.join(mcpSourceDistDir, `${serverFileName}.js`);
     return await loadToolsFromFile(filePath);
   } catch (error) {
diff --git a/apps/dbagent/src/lib/db/mcp-servers.ts b/apps/dbagent/src/lib/db/mcp-servers.ts
index 5ca61373..a0f7e7ba 100644
--- a/apps/dbagent/src/lib/db/mcp-servers.ts
+++ b/apps/dbagent/src/lib/db/mcp-servers.ts
@@ -1,8 +1,11 @@
 'use server';
 
 import { eq } from 'drizzle-orm';
+import { promises as fs } from 'fs';
+import path from 'path';
 import { DBAccess } from '~/lib/db/db';
 import { MCPServer, MCPServerInsert, mcpServers } from '~/lib/db/schema';
+import { getMCPServersDir } from '../ai/tools/user-mcp';
 
 export async function getUserMcpServers(dbAccess: DBAccess) {
   return await dbAccess.query(async ({ db }) => {
@@ -20,7 +23,33 @@ export async function getUserMcpServer(dbAccess: DBAccess, serverName: string) {
   });
 }
 
-//might need to update this for version and filepath aswell
+export async function findServerOnDisk(server: string): Promise<MCPServerInsert | null> {
+  const mcpServersDir = getMCPServersDir();
+
+  // Ensure server name is safe and only contains alphanumeric characters, dots, and hyphens
+  const sanitizedServer = server.replace(/[^a-zA-Z0-9.-]/g, '');
+  const filePath = path.join(mcpServersDir, `${sanitizedServer}.js`);
+  if (!filePath.startsWith(mcpServersDir) || filePath.includes('..')) {
+    return null;
+  }
+
+  // Check if file exists
+  try {
+    await fs.access(filePath);
+  } catch (error) {
+    return null;
+  }
+
+  const metadata = {
+    name: sanitizedServer,
+    serverName: sanitizedServer,
+    filePath: `${sanitizedServer}.js`,
+    enabled: false,
+    version: '0.0.0' // not used
+  };
+  return metadata;
+}
+
 export async function updateUserMcpServer(dbAccess: DBAccess, input: MCPServerInsert) {
   return await dbAccess.query(async ({ db }) => {
     const result = await db
@@ -33,7 +62,7 @@ export async function updateUserMcpServer(dbAccess: DBAccess, input: MCPServerIn
       .returning();
 
     if (result.length === 0) {
-      throw new Error(`[UPDATE]Server with name "${input.name}" not found`);
+      throw new Error(`[UPDATE] Server with name "${input.name}" not found`);
     }
 
     return result[0];
@@ -55,8 +84,8 @@ export async function addUserMcpServerToDB(dbAccess: DBAccess, input: MCPServer)
       .values({
         name: input.name,
         serverName: input.serverName,
-        version: input.version,
-        filePath: input.filePath,
+        version: '0.0.0', // not used
+        filePath: `${input.name}.js`,
         enabled: input.enabled
       })
       .returning();
diff --git a/apps/dbagent/src/lib/env/server.ts b/apps/dbagent/src/lib/env/server.ts
index 3daf17b7..09096cd1 100644
--- a/apps/dbagent/src/lib/env/server.ts
+++ b/apps/dbagent/src/lib/env/server.ts
@@ -8,8 +8,7 @@ const schema = z.object({
   DATABASE_URL: z.string(),
 
   // MCP settings
-  MCP_SOURCE_DIR: z.string().optional(),
-
+  MCP_SERVERS_DIR: z.string().optional(),
   // The OpenID client settings
   AUTH_SECRET: z.string().optional(),
   AUTH_OPENID_ID: z.string().optional(),
diff --git a/docker-compose.yml b/docker-compose.yml
index 364983a1..70d50234 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -12,12 +12,15 @@ services:
       - db_network
 
   xata-agent:
-    image: xataio/agent:0.2.2
+    image: xataio/agent:0.3.1
     environment:
       DATABASE_URL: postgresql://${POSTGRES_USER:-dbagent}:${POSTGRES_PASSWORD:-changeme}@postgres:5432/${POSTGRES_DB:-dbagent}
       NODE_ENV: production
       AUTH_TRUST_HOST: ${AUTH_TRUST_HOST:-localhost}
+      MCP_SERVERS_DIR: mcp-servers
     env_file: '.env.production'
+    volumes:
+      - ./mcp-servers:/app/apps/dbagent/mcp-servers
     ports:
       - '8080:8080'
     depends_on: