Handles message type Exception in lowlevel/server.py _handle_message function. Mentioned as TODO on line 528.

src/mcp/server/lowlevel/server.py

@@ -642,13 +642,21 @@ async def _handle_message(
         raise_exceptions: bool = False,
     ):
         with warnings.catch_warnings(record=True) as w:
-            # TODO(Marcelo): We should be checking if message is Exception here.
-            match message:  # type: ignore[reportMatchNotExhaustive]
+            match message:
                 case RequestResponder(request=types.ClientRequest(root=req)) as responder:
                     with responder:
                         await self._handle_request(message, req, session, lifespan_context, raise_exceptions)
                 case types.ClientNotification(root=notify):
                     await self._handle_notification(notify)
+                case Exception():
+                    logger.error(f"Received exception from stream: {message}")
+                    await session.send_log_message(
+                        level="error",
+                        data="Internal Server Error",
+                        logger="mcp.server.exception_handler",
+                    )
+                    if raise_exceptions:
+                        raise message
 
             for warning in w:
                 logger.info("Warning: %s: %s", warning.category.__name__, warning.message)

tests/server/test_lowlevel_exception_handling.py

@@ -0,0 +1,74 @@
+from unittest.mock import AsyncMock, Mock
+
+import pytest
+
+import mcp.types as types
+from mcp.server.lowlevel.server import Server
+from mcp.server.session import ServerSession
+from mcp.shared.session import RequestResponder
+
+
+@pytest.mark.anyio
+async def test_exception_handling_with_raise_exceptions_true():
+    """Test that exceptions are re-raised when raise_exceptions=True"""
+    server = Server("test-server")
+    session = Mock(spec=ServerSession)
+    session.send_log_message = AsyncMock()
+
+    test_exception = RuntimeError("Test error")
+
+    with pytest.raises(RuntimeError, match="Test error"):
+        await server._handle_message(test_exception, session, {}, raise_exceptions=True)
+
+    session.send_log_message.assert_called_once()
+
+
+@pytest.mark.anyio
+@pytest.mark.parametrize(
+    "exception_class,message",
+    [
+        (ValueError, "Test validation error"),
+        (RuntimeError, "Test runtime error"),
+        (KeyError, "Test key error"),
+        (Exception, "Basic error"),
+    ],
+)
+async def test_exception_handling_with_raise_exceptions_false(exception_class: type[Exception], message: str):
+    """Test that exceptions are logged when raise_exceptions=False"""
+    server = Server("test-server")
+    session = Mock(spec=ServerSession)
+    session.send_log_message = AsyncMock()
+
+    test_exception = exception_class(message)
+
+    await server._handle_message(test_exception, session, {}, raise_exceptions=False)
+
+    # Should send log message
+    session.send_log_message.assert_called_once()
+    call_args = session.send_log_message.call_args
+
+    assert call_args.kwargs["level"] == "error"
+    assert call_args.kwargs["data"] == "Internal Server Error"
+    assert call_args.kwargs["logger"] == "mcp.server.exception_handler"
+
+
+@pytest.mark.anyio
+async def test_normal_message_handling_not_affected():
+    """Test that normal messages still work correctly"""
+    server = Server("test-server")
+    session = Mock(spec=ServerSession)
+
+    # Create a mock RequestResponder
+    responder = Mock(spec=RequestResponder)
+    responder.request = types.ClientRequest(root=types.PingRequest(method="ping"))
+    responder.__enter__ = Mock(return_value=responder)
+    responder.__exit__ = Mock(return_value=None)
+
+    # Mock the _handle_request method to avoid complex setup
+    server._handle_request = AsyncMock()
+
+    # Should handle normally without any exception handling
+    await server._handle_message(responder, session, {}, raise_exceptions=False)
+
+    # Verify _handle_request was called
+    server._handle_request.assert_called_once()