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docs: explain default config merge behavior #241

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17 changes: 11 additions & 6 deletions README.md
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Expand Up @@ -339,13 +339,18 @@ Restrict which tools are available from a server using `allowedTools` and `disab

### Config Resolution

The CLI searches for configuration in this order:
The CLI resolves configuration using these rules:

1. `MCP_CONFIG_PATH` environment variable
2. `-c/--config` command line argument
3. `./mcp_servers.json` (current directory)
4. `~/.mcp_servers.json`
5. `~/.config/mcp/mcp_servers.json`
1. If `MCP_CONFIG_PATH` is set, use only that file.
2. If `-c/--config` is passed, use only that file.
3. Otherwise, merge all existing default files in this order:
- `./mcp_servers.json` (current directory)
- `~/.mcp_servers.json`
- `~/.config/mcp/mcp_servers.json`

When default files are merged, later files override earlier ones for the same server name.

**Example:** keep personal tools in `~/.config/mcp/mcp_servers.json`, add project-local servers in `./mcp_servers.json`, and override a shared `github` server in the project file when needed.

### Environment Variables

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