diff --git a/src/server/mcp.test.ts b/src/server/mcp.test.ts
index 10e550df4..b6e78414b 100644
--- a/src/server/mcp.test.ts
+++ b/src/server/mcp.test.ts
@@ -3703,7 +3703,7 @@ describe("Tool title precedence", () => {
         description: "Tool with regular title"
       },
       async () => ({
-        content: [{ type: "text", text: "Response" }],
+        content: [{ type: "text" as const, text: "Response" }],
       })
     );
 
@@ -3718,7 +3718,7 @@ describe("Tool title precedence", () => {
         }
       },
       async () => ({
-        content: [{ type: "text", text: "Response" }],
+        content: [{ type: "text" as const, text: "Response" }],
       })
     );
 
@@ -4291,3 +4291,222 @@ describe("elicitInput()", () => {
     }]);
   });
 });
+
+describe("Tools with union and intersection schemas", () => {
+  test("should support union schemas", async () => {
+    const server = new McpServer({
+      name: "test",
+      version: "1.0.0",
+    });
+
+    const client = new Client({
+      name: "test-client",
+      version: "1.0.0",
+    });
+
+    // Define the union schema for email/phone contact
+    const unionSchema = z.union([
+      z.object({ type: z.literal("email"), email: z.string().email() }),
+      z.object({ type: z.literal("phone"), phone: z.string() })
+    ]);
+
+    // Register tool before connecting
+    server.registerTool("contact", { inputSchema: unionSchema }, async (args) => {
+      if (args.type === "email") {
+        return {
+          content: [{ type: "text" as const, text: `Email contact: ${args.email}` }]
+        };
+      } else {
+        return {
+          content: [{ type: "text" as const, text: `Phone contact: ${args.phone}` }]
+        };
+      }
+    });
+
+    // Connect after registering tools
+    const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+    await server.connect(serverTransport);
+    await client.connect(clientTransport);
+
+    // Test with email
+    const emailResult = await client.callTool({
+      name: "contact",
+      arguments: {
+        type: "email",
+        email: "test@example.com"
+      }
+    });
+
+    expect(emailResult.content).toEqual([{
+      type: "text",
+      text: "Email contact: test@example.com"
+    }]);
+
+    // Test with phone
+    const phoneResult = await client.callTool({
+      name: "contact",
+      arguments: {
+        type: "phone",
+        phone: "+1234567890"
+      }
+    });
+
+    expect(phoneResult.content).toEqual([{
+      type: "text",
+      text: "Phone contact: +1234567890"
+    }]);
+  });
+
+  test("should support intersection schemas", async () => {
+    const server = new McpServer({
+      name: "test",
+      version: "1.0.0",
+    });
+
+    const client = new Client({
+      name: "test-client",
+      version: "1.0.0",
+    });
+
+    // Define intersection schema
+    const baseSchema = z.object({ id: z.string() });
+    const extendedSchema = z.object({ name: z.string(), age: z.number() });
+    const intersectionSchema = z.intersection(baseSchema, extendedSchema);
+
+    // Register tool before connecting
+    server.registerTool("user", { inputSchema: intersectionSchema }, async (args) => {
+      return {
+        content: [{
+          type: "text" as const,
+          text: `User: ${args.id}, ${args.name}, ${args.age} years old`
+        }]
+      };
+    });
+
+    // Connect after registering tools
+    const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+    await server.connect(serverTransport);
+    await client.connect(clientTransport);
+
+    const result = await client.callTool({
+      name: "user",
+      arguments: {
+        id: "123",
+        name: "John Doe",
+        age: 30
+      }
+    });
+
+    expect(result.content).toEqual([{
+      type: "text",
+      text: "User: 123, John Doe, 30 years old"
+    }]);
+  });
+
+  test("should support complex nested schemas", async () => {
+    const server = new McpServer({
+      name: "test",
+      version: "1.0.0",
+    });
+
+    const client = new Client({
+      name: "test-client",
+      version: "1.0.0",
+    });
+
+    // A more complex schema that wouldn't work with ZodRawShape
+    const schema = z.object({
+      items: z.array(
+        z.union([
+          z.object({ type: z.literal("text"), content: z.string() }),
+          z.object({ type: z.literal("number"), value: z.number() })
+        ])
+      )
+    });
+
+    // Register tool before connecting
+    server.registerTool("process", { inputSchema: schema }, async (args) => {
+      const processed = args.items.map(item => {
+        if (item.type === "text") {
+          return item.content.toUpperCase();
+        } else {
+          return item.value * 2;
+        }
+      });
+      return {
+        content: [{
+          type: "text" as const,
+          text: `Processed: ${processed.join(", ")}`
+        }]
+      };
+    });
+
+    // Connect after registering tools
+    const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+    await server.connect(serverTransport);
+    await client.connect(clientTransport);
+
+    const result = await client.callTool({
+      name: "process",
+      arguments: {
+        items: [
+          { type: "text", content: "hello" },
+          { type: "number", value: 5 },
+          { type: "text", content: "world" }
+        ]
+      }
+    });
+
+    expect(result.content).toEqual([{
+      type: "text",
+      text: "Processed: HELLO, 10, WORLD"
+    }]);
+  });
+
+  test("should validate union schema inputs correctly", async () => {
+    const server = new McpServer({
+      name: "test",
+      version: "1.0.0",
+    });
+
+    const client = new Client({
+      name: "test-client",
+      version: "1.0.0",
+    });
+
+    const unionSchema = z.union([
+      z.object({ type: z.literal("a"), value: z.string() }),
+      z.object({ type: z.literal("b"), value: z.number() })
+    ]);
+
+    // Register tool before connecting
+    server.registerTool("union-test", { inputSchema: unionSchema }, async () => {
+      return {
+        content: [{ type: "text" as const, text: "Success" }]
+      };
+    });
+
+    // Connect after registering tools
+    const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+    await server.connect(serverTransport);
+    await client.connect(clientTransport);
+
+    // Should fail with invalid input - wrong type for value
+    await expect(client.callTool({
+      name: "union-test",
+      arguments: {
+        type: "a",
+        value: 123 // Wrong type - should be string
+      }
+    })).rejects.toThrow();
+
+    // Should fail with invalid discriminator
+    await expect(client.callTool({
+      name: "union-test",
+      arguments: {
+        type: "c", // Invalid discriminator
+        value: "test"
+      }
+    })).rejects.toThrow();
+  });
+});
diff --git a/src/server/mcp.ts b/src/server/mcp.ts
index 791facef1..d412fc193 100644
--- a/src/server/mcp.ts
+++ b/src/server/mcp.ts
@@ -5,7 +5,6 @@ import {
   ZodRawShape,
   ZodObject,
   ZodString,
-  AnyZodObject,
   ZodTypeAny,
   ZodType,
   ZodTypeDef,
@@ -769,18 +768,16 @@ export class McpServer {
     name: string,
     title: string | undefined,
     description: string | undefined,
-    inputSchema: ZodRawShape | undefined,
-    outputSchema: ZodRawShape | undefined,
+    inputSchema: ZodRawShape | ZodType<object> | undefined,
+    outputSchema: ZodRawShape | ZodType<object> | undefined,
     annotations: ToolAnnotations | undefined,
     callback: ToolCallback<ZodRawShape | undefined>
   ): RegisteredTool {
     const registeredTool: RegisteredTool = {
       title,
       description,
-      inputSchema:
-        inputSchema === undefined ? undefined : z.object(inputSchema),
-      outputSchema:
-        outputSchema === undefined ? undefined : z.object(outputSchema),
+      inputSchema: getZodSchemaObject(inputSchema),
+      outputSchema: getZodSchemaObject(outputSchema),
       annotations,
       callback,
       enabled: true,
@@ -920,7 +917,7 @@ export class McpServer {
   /**
    * Registers a tool with a config object and callback.
    */
-  registerTool<InputArgs extends ZodRawShape, OutputArgs extends ZodRawShape>(
+  registerTool<InputArgs extends ZodRawShape | ZodType<object>, OutputArgs extends ZodRawShape | ZodType<object>>(
     name: string,
     config: {
       title?: string;
@@ -1148,19 +1145,24 @@ export class ResourceTemplate {
  * - `content` if the tool does not have an outputSchema
  * - Both fields are optional but typically one should be provided
  */
-export type ToolCallback<Args extends undefined | ZodRawShape = undefined> =
+export type ToolCallback<Args extends undefined | ZodRawShape | ZodType<object> = undefined> =
   Args extends ZodRawShape
   ? (
     args: z.objectOutputType<Args, ZodTypeAny>,
     extra: RequestHandlerExtra<ServerRequest, ServerNotification>,
   ) => CallToolResult | Promise<CallToolResult>
+  : Args extends ZodType<infer T> 
+  ? (
+    args: T,
+    extra: RequestHandlerExtra<ServerRequest, ServerNotification>,
+  ) => CallToolResult | Promise<CallToolResult>
   : (extra: RequestHandlerExtra<ServerRequest, ServerNotification>) => CallToolResult | Promise<CallToolResult>;
 
 export type RegisteredTool = {
   title?: string;
   description?: string;
-  inputSchema?: AnyZodObject;
-  outputSchema?: AnyZodObject;
+  inputSchema?: ZodType<object>;
+  outputSchema?: ZodType<object>;
   annotations?: ToolAnnotations;
   callback: ToolCallback<undefined | ZodRawShape>;
   enabled: boolean;
@@ -1203,6 +1205,22 @@ function isZodTypeLike(value: unknown): value is ZodType {
     'safeParse' in value && typeof value.safeParse === 'function';
 }
 
+/**
+ * Converts a provided Zod schema to a Zod object if it is a ZodRawShape,
+ * otherwise returns the schema as is.
+ */
+function getZodSchemaObject(schema: ZodRawShape | ZodType<object> | undefined): ZodType<object> | undefined {
+  if (!schema) {
+    return undefined;
+  }
+
+  if (isZodRawShape(schema)) {
+    return z.object(schema);
+  }
+
+  return schema;
+}
+
 /**
  * Additional, optional information for annotating a resource.
  */