diff --git a/packages/cli/src/config/settings-validation.test.ts b/packages/cli/src/config/settings-validation.test.ts
index 8d4cc641f54..908da8e01c0 100644
--- a/packages/cli/src/config/settings-validation.test.ts
+++ b/packages/cli/src/config/settings-validation.test.ts
@@ -219,6 +219,60 @@ describe('settings-validation', () => {
       }
     });
 
+    it('should validate mcpServers with type field for all transport types', () => {
+      const validSettings = {
+        mcpServers: {
+          'sse-server': {
+            url: 'https://example.com/sse',
+            type: 'sse',
+            headers: { 'X-API-Key': 'key' },
+          },
+          'http-server': {
+            url: 'https://example.com/mcp',
+            type: 'http',
+          },
+          'stdio-server': {
+            command: '/usr/bin/mcp-server',
+            type: 'stdio',
+          },
+        },
+      };
+
+      const result = validateSettings(validSettings);
+      expect(result.success).toBe(true);
+    });
+
+    it('should reject invalid type values in mcpServers', () => {
+      const invalidSettings = {
+        mcpServers: {
+          'bad-server': {
+            url: 'https://example.com/mcp',
+            type: 'invalid-type',
+          },
+        },
+      };
+
+      const result = validateSettings(invalidSettings);
+      expect(result.success).toBe(false);
+    });
+
+    it('should validate mcpServers without type field', () => {
+      const validSettings = {
+        mcpServers: {
+          'stdio-server': {
+            command: '/usr/bin/mcp-server',
+            args: ['--port', '8080'],
+          },
+          'url-server': {
+            url: 'https://example.com/mcp',
+          },
+        },
+      };
+
+      const result = validateSettings(validSettings);
+      expect(result.success).toBe(true);
+    });
+
     it('should validate complex nested customThemes configuration', () => {
       const invalidSettings = {
         ui: {
diff --git a/packages/cli/src/config/settingsSchema.ts b/packages/cli/src/config/settingsSchema.ts
index 4009e212d67..15f0df7f9d1 100644
--- a/packages/cli/src/config/settingsSchema.ts
+++ b/packages/cli/src/config/settingsSchema.ts
@@ -1704,7 +1704,8 @@ export const SETTINGS_SCHEMA_DEFINITIONS: Record<
       },
       url: {
         type: 'string',
-        description: 'SSE transport URL.',
+        description:
+          'URL for SSE or HTTP transport. Use with "type" field to specify transport type.',
       },
       httpUrl: {
         type: 'string',
@@ -1719,6 +1720,12 @@ export const SETTINGS_SCHEMA_DEFINITIONS: Record<
         type: 'string',
         description: 'TCP address for websocket transport.',
       },
+      type: {
+        type: 'string',
+        description:
+          'Transport type. Use "stdio" for local command, "sse" for Server-Sent Events, or "http" for Streamable HTTP.',
+        enum: ['stdio', 'sse', 'http'],
+      },
       timeout: {
         type: 'number',
         description: 'Timeout in milliseconds for MCP requests.',
diff --git a/schemas/settings.schema.json b/schemas/settings.schema.json
index 6eb95354d60..220e93538c9 100644
--- a/schemas/settings.schema.json
+++ b/schemas/settings.schema.json
@@ -1599,7 +1599,7 @@
         },
         "url": {
           "type": "string",
-          "description": "SSE transport URL."
+          "description": "URL for SSE or HTTP transport. Use with \"type\" field to specify transport type."
         },
         "httpUrl": {
           "type": "string",
@@ -1616,6 +1616,11 @@
           "type": "string",
           "description": "TCP address for websocket transport."
         },
+        "type": {
+          "type": "string",
+          "description": "Transport type. Use \"stdio\" for local command, \"sse\" for Server-Sent Events, or \"http\" for Streamable HTTP.",
+          "enum": ["stdio", "sse", "http"]
+        },
         "timeout": {
           "type": "number",
           "description": "Timeout in milliseconds for MCP requests."