diff --git a/src/vs/platform/mcp/common/mcpManagement.ts b/src/vs/platform/mcp/common/mcpManagement.ts
index 9c2b7e73d90..834068a98b6 100644
--- a/src/vs/platform/mcp/common/mcpManagement.ts
+++ b/src/vs/platform/mcp/common/mcpManagement.ts
@@ -10,13 +10,14 @@ import { IIterativePager } from '../../../base/common/paging.js';
 import { URI } from '../../../base/common/uri.js';
 import { SortBy, SortOrder } from '../../extensionManagement/common/extensionManagement.js';
 import { createDecorator } from '../../instantiation/common/instantiation.js';
-import { IMcpServerConfiguration, IMcpServerVariable } from './mcpPlatformTypes.js';
+import { IMcpSandboxConfiguration, IMcpServerConfiguration, IMcpServerVariable } from './mcpPlatformTypes.js';
 
 export type InstallSource = 'gallery' | 'local';
 
 export interface ILocalMcpServer {
 	readonly name: string;
 	readonly config: IMcpServerConfiguration;
+	readonly rootSandbox?: IMcpSandboxConfiguration;
 	readonly version?: string;
 	readonly mcpResource: URI;
 	readonly location?: URI;
diff --git a/src/vs/platform/mcp/common/mcpManagementService.ts b/src/vs/platform/mcp/common/mcpManagementService.ts
index 5f72d29a8fe..ec10b0f0ea9 100644
--- a/src/vs/platform/mcp/common/mcpManagementService.ts
+++ b/src/vs/platform/mcp/common/mcpManagementService.ts
@@ -22,7 +22,7 @@ import { ILogService } from '../../log/common/log.js';
 import { IUriIdentityService } from '../../uriIdentity/common/uriIdentity.js';
 import { IUserDataProfilesService } from '../../userDataProfile/common/userDataProfile.js';
 import { DidUninstallMcpServerEvent, IGalleryMcpServer, ILocalMcpServer, IMcpGalleryService, IMcpManagementService, IMcpServerInput, IGalleryMcpServerConfiguration, InstallMcpServerEvent, InstallMcpServerResult, RegistryType, UninstallMcpServerEvent, InstallOptions, UninstallOptions, IInstallableMcpServer, IAllowedMcpServersService, IMcpServerArgument, IMcpServerKeyValueInput, McpServerConfigurationParseResult } from './mcpManagement.js';
-import { IMcpServerVariable, McpServerVariableType, IMcpServerConfiguration, McpServerType } from './mcpPlatformTypes.js';
+import { IMcpSandboxConfiguration, IMcpServerVariable, McpServerVariableType, IMcpServerConfiguration, McpServerType } from './mcpPlatformTypes.js';
 import { IMcpResourceScannerService, McpResourceTarget } from './mcpResourceScannerService.js';
 
 export interface ILocalMcpServerInfo {
@@ -358,7 +358,7 @@ export abstract class AbstractMcpResourceManagementService extends AbstractCommo
 			const scannedMcpServers = await this.mcpResourceScannerService.scanMcpServers(this.mcpResource, this.target);
 			if (scannedMcpServers.servers) {
 				await Promise.allSettled(Object.entries(scannedMcpServers.servers).map(async ([name, scannedServer]) => {
-					const server = await this.scanLocalServer(name, scannedServer);
+					const server = await this.scanLocalServer(name, scannedServer, scannedMcpServers.sandbox);
 					local.set(name, server);
 				}));
 			}
@@ -426,7 +426,7 @@ export abstract class AbstractMcpResourceManagementService extends AbstractCommo
 		return Array.from(this.local.values());
 	}
 
-	protected async scanLocalServer(name: string, config: IMcpServerConfiguration): Promise<ILocalMcpServer> {
+	protected async scanLocalServer(name: string, config: IMcpServerConfiguration, rootSandbox?: IMcpSandboxConfiguration): Promise<ILocalMcpServer> {
 		let mcpServerInfo = await this.getLocalServerInfo(name, config);
 		if (!mcpServerInfo) {
 			mcpServerInfo = { name, version: config.version, galleryUrl: isString(config.gallery) ? config.gallery : undefined };
@@ -435,6 +435,7 @@ export abstract class AbstractMcpResourceManagementService extends AbstractCommo
 		return {
 			name,
 			config,
+			rootSandbox,
 			mcpResource: this.mcpResource,
 			version: mcpServerInfo.version,
 			location: mcpServerInfo.location,
diff --git a/src/vs/platform/mcp/common/mcpPlatformTypes.ts b/src/vs/platform/mcp/common/mcpPlatformTypes.ts
index 985d17f1dc7..dc4fb38172e 100644
--- a/src/vs/platform/mcp/common/mcpPlatformTypes.ts
+++ b/src/vs/platform/mcp/common/mcpPlatformTypes.ts
@@ -58,7 +58,6 @@ export interface IMcpStdioServerConfiguration extends ICommonMcpServerConfigurat
 	readonly envFile?: string;
 	readonly cwd?: string;
 	readonly sandboxEnabled?: boolean;
-	readonly sandbox?: IMcpSandboxConfiguration;
 	readonly dev?: IMcpDevModeConfig;
 }
 
diff --git a/src/vs/platform/mcp/common/mcpResourceScannerService.ts b/src/vs/platform/mcp/common/mcpResourceScannerService.ts
index e0c67bb8b83..151238228b5 100644
--- a/src/vs/platform/mcp/common/mcpResourceScannerService.ts
+++ b/src/vs/platform/mcp/common/mcpResourceScannerService.ts
@@ -188,7 +188,7 @@ export class McpResourceScannerService extends Disposable implements IMcpResourc
 		if (servers.length > 0) {
 			userMcpServers.servers = {};
 			for (const [serverName, server] of servers) {
-				userMcpServers.servers[serverName] = this.sanitizeServer(server, scannedMcpServers.sandbox);
+				userMcpServers.servers[serverName] = this.sanitizeServer(server);
 			}
 		}
 		return userMcpServers;
@@ -203,14 +203,14 @@ export class McpResourceScannerService extends Disposable implements IMcpResourc
 		if (servers.length > 0) {
 			scannedMcpServers.servers = {};
 			for (const [serverName, config] of servers) {
-				const serverConfig = this.sanitizeServer(config, scannedMcpServers.sandbox);
+				const serverConfig = this.sanitizeServer(config);
 				scannedMcpServers.servers[serverName] = serverConfig;
 			}
 		}
 		return scannedMcpServers;
 	}
 
-	private sanitizeServer(serverOrConfig: IOldScannedMcpServer | Mutable<IMcpServerConfiguration>, sandbox?: IMcpSandboxConfiguration): IMcpServerConfiguration {
+	private sanitizeServer(serverOrConfig: IOldScannedMcpServer | Mutable<IMcpServerConfiguration>): IMcpServerConfiguration {
 		let server: IMcpServerConfiguration;
 		if ((<IOldScannedMcpServer>serverOrConfig).config) {
 			const oldScannedMcpServer = <IOldScannedMcpServer>serverOrConfig;
@@ -226,11 +226,6 @@ export class McpResourceScannerService extends Disposable implements IMcpResourc
 		if (server.type === undefined || (server.type !== McpServerType.REMOTE && server.type !== McpServerType.LOCAL)) {
 			(<Mutable<ICommonMcpServerConfiguration>>server).type = (<IMcpStdioServerConfiguration>server).command ? McpServerType.LOCAL : McpServerType.REMOTE;
 		}
-
-		if (sandbox && server.type === McpServerType.LOCAL) {
-			(<Mutable<IMcpStdioServerConfiguration>>server).sandbox = sandbox;
-		}
-
 		return server;
 	}
 
diff --git a/src/vs/platform/mcp/test/common/mcpManagementService.test.ts b/src/vs/platform/mcp/test/common/mcpManagementService.test.ts
index 78ee3299652..7245ffd376b 100644
--- a/src/vs/platform/mcp/test/common/mcpManagementService.test.ts
+++ b/src/vs/platform/mcp/test/common/mcpManagementService.test.ts
@@ -4,14 +4,22 @@
  *--------------------------------------------------------------------------------------------*/
 
 import assert from 'assert';
+import { VSBuffer } from '../../../../base/common/buffer.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../base/test/common/utils.js';
-import { AbstractCommonMcpManagementService } from '../../common/mcpManagementService.js';
-import { IGalleryMcpServer, IGalleryMcpServerConfiguration, IInstallableMcpServer, ILocalMcpServer, InstallOptions, RegistryType, TransportType, UninstallOptions } from '../../common/mcpManagement.js';
-import { McpServerType, McpServerVariableType, IMcpServerVariable } from '../../common/mcpPlatformTypes.js';
+import { DisposableStore } from '../../../../base/common/lifecycle.js';
+import { Schemas } from '../../../../base/common/network.js';
+import { AbstractCommonMcpManagementService, AbstractMcpResourceManagementService } from '../../common/mcpManagementService.js';
+import { IGalleryMcpServer, IGalleryMcpServerConfiguration, IInstallableMcpServer, ILocalMcpServer, IMcpGalleryService, InstallOptions, RegistryType, TransportType, UninstallOptions } from '../../common/mcpManagement.js';
+import { IMcpSandboxConfiguration, McpServerType, McpServerVariableType, IMcpServerConfiguration, IMcpServerVariable } from '../../common/mcpPlatformTypes.js';
 import { IMarkdownString } from '../../../../base/common/htmlContent.js';
 import { Event } from '../../../../base/common/event.js';
 import { URI } from '../../../../base/common/uri.js';
+import { ConfigurationTarget } from '../../../configuration/common/configuration.js';
+import { FileService } from '../../../files/common/fileService.js';
+import { InMemoryFileSystemProvider } from '../../../files/common/inMemoryFilesystemProvider.js';
 import { NullLogService } from '../../../log/common/log.js';
+import { McpResourceScannerService } from '../../common/mcpResourceScannerService.js';
+import { UriIdentityService } from '../../../uriIdentity/common/uriIdentityService.js';
 
 class TestMcpManagementService extends AbstractCommonMcpManagementService {
 
@@ -42,6 +50,44 @@ class TestMcpManagementService extends AbstractCommonMcpManagementService {
 	}
 }
 
+class TestMcpResourceManagementService extends AbstractMcpResourceManagementService {
+	constructor(mcpResource: URI, fileService: FileService, uriIdentityService: UriIdentityService, mcpResourceScannerService: McpResourceScannerService) {
+		super(
+			mcpResource,
+			ConfigurationTarget.USER,
+			{} as IMcpGalleryService,
+			fileService,
+			uriIdentityService,
+			new NullLogService(),
+			mcpResourceScannerService,
+		);
+	}
+
+	public reload(): Promise<void> {
+		return this.updateLocal();
+	}
+
+	override canInstall(_server: IGalleryMcpServer | IInstallableMcpServer): true | IMarkdownString {
+		throw new Error('Not supported');
+	}
+
+	protected override getLocalServerInfo(_name: string, _mcpServerConfig: IMcpServerConfiguration) {
+		return Promise.resolve(undefined);
+	}
+
+	protected override installFromUri(_uri: URI): Promise<ILocalMcpServer> {
+		throw new Error('Not supported');
+	}
+
+	override installFromGallery(_server: IGalleryMcpServer, _options?: InstallOptions): Promise<ILocalMcpServer> {
+		throw new Error('Not supported');
+	}
+
+	override updateMetadata(_local: ILocalMcpServer, _server: IGalleryMcpServer): Promise<ILocalMcpServer> {
+		throw new Error('Not supported');
+	}
+}
+
 suite('McpManagementService - getMcpServerConfigurationFromManifest', () => {
 	let service: TestMcpManagementService;
 
@@ -1073,3 +1119,74 @@ suite('McpManagementService - getMcpServerConfigurationFromManifest', () => {
 		});
 	});
 });
+
+suite('McpResourceManagementService', () => {
+	const mcpResource = URI.from({ scheme: Schemas.inMemory, path: '/mcp.json' });
+	let disposables: DisposableStore;
+	let fileService: FileService;
+	let service: TestMcpResourceManagementService;
+
+	setup(async () => {
+		disposables = new DisposableStore();
+		fileService = disposables.add(new FileService(new NullLogService()));
+		disposables.add(fileService.registerProvider(Schemas.inMemory, disposables.add(new InMemoryFileSystemProvider())));
+		const uriIdentityService = disposables.add(new UriIdentityService(fileService));
+		const scannerService = disposables.add(new McpResourceScannerService(fileService, uriIdentityService));
+		service = disposables.add(new TestMcpResourceManagementService(mcpResource, fileService, uriIdentityService, scannerService));
+
+		await fileService.writeFile(mcpResource, VSBuffer.fromString(JSON.stringify({
+			sandbox: {
+				network: { allowedDomains: ['example.com'] }
+			},
+			servers: {
+				test: {
+					type: 'stdio',
+					command: 'node',
+					sandboxEnabled: true
+				}
+			}
+		}, null, '\t')));
+	});
+
+	teardown(() => {
+		disposables.dispose();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('fires update when root sandbox changes', async () => {
+		const initial = await service.getInstalled();
+		assert.strictEqual(initial.length, 1);
+		assert.deepStrictEqual(initial[0].rootSandbox, {
+			network: { allowedDomains: ['example.com'] }
+		});
+
+		let updateCount = 0;
+		const updatePromise = new Promise<void>(resolve => disposables.add(service.onDidUpdateMcpServers(e => {
+			assert.strictEqual(e.length, 1);
+			updateCount++;
+			resolve();
+		})));
+
+		const updatedSandbox: IMcpSandboxConfiguration = {
+			network: { allowedDomains: ['changed.example.com'] }
+		};
+
+		await fileService.writeFile(mcpResource, VSBuffer.fromString(JSON.stringify({
+			sandbox: updatedSandbox,
+			servers: {
+				test: {
+					type: 'stdio',
+					command: 'node',
+					sandboxEnabled: true
+				}
+			}
+		}, null, '\t')));
+		await service.reload();
+		await updatePromise;
+		const updated = await service.getInstalled();
+
+		assert.strictEqual(updateCount, 1);
+		assert.deepStrictEqual(updated[0].rootSandbox, updatedSandbox);
+	});
+});
diff --git a/src/vs/workbench/api/common/extHostTypeConverters.ts b/src/vs/workbench/api/common/extHostTypeConverters.ts
index 61a6ce830c2..22adb59bbae 100644
--- a/src/vs/workbench/api/common/extHostTypeConverters.ts
+++ b/src/vs/workbench/api/common/extHostTypeConverters.ts
@@ -4052,6 +4052,7 @@ export namespace McpServerDefinition {
 					command: item.command,
 					env: item.env,
 					envFile: undefined,
+					sandbox: undefined
 				}
 		);
 	}
diff --git a/src/vs/workbench/contrib/mcp/common/discovery/installedMcpServersDiscovery.ts b/src/vs/workbench/contrib/mcp/common/discovery/installedMcpServersDiscovery.ts
index 1dc17864797..c3d16718ad3 100644
--- a/src/vs/workbench/contrib/mcp/common/discovery/installedMcpServersDiscovery.ts
+++ b/src/vs/workbench/contrib/mcp/common/discovery/installedMcpServersDiscovery.ts
@@ -96,6 +96,7 @@ export class InstalledMcpServersDiscovery extends Disposable implements IMcpDisc
 					env: config.env || {},
 					envFile: config.envFile,
 					cwd: config.cwd,
+					sandbox: server.rootSandbox
 				};
 
 				definitions[1].push({
@@ -103,7 +104,6 @@ export class InstalledMcpServersDiscovery extends Disposable implements IMcpDisc
 					label: server.name,
 					launch,
 					sandboxEnabled: config.type === 'http' ? undefined : config.sandboxEnabled,
-					sandbox: config.type === 'http' ? undefined : config.sandbox,
 					cacheNonce: await McpServerLaunch.hash(launch),
 					roots: mcpConfigPath?.workspaceFolder ? [mcpConfigPath.workspaceFolder.uri] : undefined,
 					variableReplacement: {
diff --git a/src/vs/workbench/contrib/mcp/common/discovery/nativeMcpDiscoveryAdapters.ts b/src/vs/workbench/contrib/mcp/common/discovery/nativeMcpDiscoveryAdapters.ts
index 3287e0347e7..fe7aca88798 100644
--- a/src/vs/workbench/contrib/mcp/common/discovery/nativeMcpDiscoveryAdapters.ts
+++ b/src/vs/workbench/contrib/mcp/common/discovery/nativeMcpDiscoveryAdapters.ts
@@ -49,6 +49,7 @@ export async function claudeConfigToServerDefinition(idPrefix: string, contents:
 			env: server.env || {},
 			envFile: undefined,
 			cwd: cwd?.fsPath,
+			sandbox: undefined
 		};
 
 		return {
diff --git a/src/vs/workbench/contrib/mcp/common/discovery/pluginMcpDiscovery.ts b/src/vs/workbench/contrib/mcp/common/discovery/pluginMcpDiscovery.ts
index a173a33b7d2..371bd107215 100644
--- a/src/vs/workbench/contrib/mcp/common/discovery/pluginMcpDiscovery.ts
+++ b/src/vs/workbench/contrib/mcp/common/discovery/pluginMcpDiscovery.ts
@@ -100,6 +100,7 @@ export class PluginMcpDiscovery extends Disposable implements IMcpDiscovery {
 				env: config.env ? { ...config.env } : {},
 				envFile: config.envFile,
 				cwd: config.cwd,
+				sandbox: undefined,
 			};
 		}
 
diff --git a/src/vs/workbench/contrib/mcp/common/mcpSandboxService.ts b/src/vs/workbench/contrib/mcp/common/mcpSandboxService.ts
index 0f8db744c93..24fac57f1de 100644
--- a/src/vs/workbench/contrib/mcp/common/mcpSandboxService.ts
+++ b/src/vs/workbench/contrib/mcp/common/mcpSandboxService.ts
@@ -19,9 +19,8 @@ import { ILogService } from '../../../../platform/log/common/log.js';
 import { IMcpResourceScannerService, McpResourceTarget } from '../../../../platform/mcp/common/mcpResourceScannerService.js';
 import { IRemoteAgentEnvironment } from '../../../../platform/remote/common/remoteAgentEnvironment.js';
 import { IRemoteAgentService } from '../../../services/remote/common/remoteAgentService.js';
-import { IMcpSandboxConfiguration, IMcpStdioServerConfiguration, McpServerType } from '../../../../platform/mcp/common/mcpPlatformTypes.js';
+import { IMcpSandboxConfiguration } from '../../../../platform/mcp/common/mcpPlatformTypes.js';
 import { IMcpPotentialSandboxBlock, McpServerDefinition, McpServerLaunch, McpServerTransportType } from './mcpTypes.js';
-import { Mutable } from '../../../../base/common/types.js';
 
 export const IMcpSandboxService = createDecorator<IMcpSandboxService>('mcpSandboxService');
 
@@ -85,7 +84,7 @@ export class McpSandboxService extends Disposable implements IMcpSandboxService
 		}
 		if (await this.isEnabled(serverDef, remoteAuthority)) {
 			this._logService.trace(`McpSandboxService: Launching with config target ${configTarget}`);
-			const launchDetails = await this._resolveSandboxLaunchDetails(configTarget, remoteAuthority, serverDef.sandbox, launch.cwd);
+			const launchDetails = await this._resolveSandboxLaunchDetails(configTarget, remoteAuthority, launch.sandbox, launch.cwd);
 			const sandboxArgs = this._getSandboxCommandArgs(launch.command, launch.args, launchDetails.sandboxConfigPath);
 			const sandboxEnv = this._getSandboxEnvVariables(launchDetails.tempDir, remoteAuthority);
 			if (launchDetails.srtPath) {
@@ -160,7 +159,7 @@ export class McpSandboxService extends Disposable implements IMcpSandboxService
 		let didChange = false;
 
 		await this._mcpResourceScannerService.updateSandboxConfig(data => {
-			const existingSandbox = data.sandbox ?? serverDef.sandbox;
+			const existingSandbox = data.sandbox;
 			const suggestedAllowedDomains = suggestedSandboxConfig?.network?.allowedDomains ?? [];
 			const suggestedAllowWrite = suggestedSandboxConfig?.filesystem?.allowWrite ?? [];
 
@@ -178,41 +177,24 @@ export class McpSandboxService extends Disposable implements IMcpSandboxService
 				}
 			}
 
-			didChange = currentAllowedDomains.size !== (existingSandbox?.network?.allowedDomains?.length ?? 0)
-				|| currentAllowWrite.size !== (existingSandbox?.filesystem?.allowWrite?.length ?? 0);
-
-			if (!didChange) {
+			if (suggestedAllowedDomains.length === 0 && suggestedAllowWrite.length === 0) {
 				return data;
 			}
 
-			const nextSandboxConfig: IMcpSandboxConfiguration = {
-				...existingSandbox,
-			};
-
-			if (currentAllowedDomains.size > 0 || existingSandbox?.network?.deniedDomains?.length) {
+			didChange = true;
+			const nextSandboxConfig: IMcpSandboxConfiguration = {};
+			if (currentAllowedDomains.size > 0) {
 				nextSandboxConfig.network = {
 					...existingSandbox?.network,
-					allowedDomains: [...currentAllowedDomains],
+					allowedDomains: [...currentAllowedDomains]
 				};
 			}
-
-			if (currentAllowWrite.size > 0 || existingSandbox?.filesystem?.denyRead?.length || existingSandbox?.filesystem?.denyWrite?.length) {
+			if (currentAllowWrite.size > 0) {
 				nextSandboxConfig.filesystem = {
 					...existingSandbox?.filesystem,
 					allowWrite: [...currentAllowWrite],
 				};
 			}
-
-			//always remove sandbox at server level when writing back, it should only exist at the top level. This is to sanitize any old or malformed configs that may have sandbox defined at the server level.
-			if (data.servers) {
-				for (const serverName in data.servers) {
-					const serverConfig = data.servers[serverName];
-					if (serverConfig.type === McpServerType.LOCAL) {
-						delete (serverConfig as Mutable<IMcpStdioServerConfiguration>).sandbox;
-					}
-				}
-			}
-
 			return {
 				...data,
 				sandbox: nextSandboxConfig,
diff --git a/src/vs/workbench/contrib/mcp/common/mcpTypes.ts b/src/vs/workbench/contrib/mcp/common/mcpTypes.ts
index 8ce685dfb1d..4c77b0a2f54 100644
--- a/src/vs/workbench/contrib/mcp/common/mcpTypes.ts
+++ b/src/vs/workbench/contrib/mcp/common/mcpTypes.ts
@@ -138,8 +138,6 @@ export interface McpServerDefinition {
 	readonly staticMetadata?: McpServerStaticMetadata;
 	/** Indicates if the sandbox is enabled for this server. */
 	readonly sandboxEnabled?: boolean;
-	/** Sandbox configuration to apply for this server. */
-	readonly sandbox?: IMcpSandboxConfiguration;
 
 
 	readonly presentation?: {
@@ -173,7 +171,6 @@ export namespace McpServerDefinition {
 		readonly variableReplacement?: McpServerDefinitionVariableReplacement.Serialized;
 		readonly staticMetadata?: McpServerStaticMetadata;
 		readonly sandboxEnabled?: boolean;
-		readonly sandbox?: IMcpSandboxConfiguration;
 	}
 
 	export function toSerialized(def: McpServerDefinition): McpServerDefinition.Serialized {
@@ -188,7 +185,6 @@ export namespace McpServerDefinition {
 			staticMetadata: def.staticMetadata,
 			launch: McpServerLaunch.fromSerialized(def.launch),
 			sandboxEnabled: def.sandboxEnabled,
-			sandbox: def.sandboxEnabled ? def.sandbox : undefined,
 			variableReplacement: def.variableReplacement ? McpServerDefinitionVariableReplacement.fromSerialized(def.variableReplacement) : undefined,
 		};
 	}
@@ -202,8 +198,8 @@ export namespace McpServerDefinition {
 			&& objectsEqual(a.presentation, b.presentation)
 			&& objectsEqual(a.variableReplacement, b.variableReplacement)
 			&& objectsEqual(a.devMode, b.devMode)
-			&& a.sandboxEnabled === b.sandboxEnabled
-			&& objectsEqual(a.sandbox, b.sandbox);
+			&& a.sandboxEnabled === b.sandboxEnabled;
+
 	}
 }
 
@@ -519,6 +515,7 @@ export interface McpServerTransportStdio {
 	readonly args: readonly string[];
 	readonly env: Record<string, string | number | null>;
 	readonly envFile: string | undefined;
+	readonly sandbox: IMcpSandboxConfiguration | undefined;
 }
 
 export interface McpServerTransportHTTPAuthentication {
@@ -551,7 +548,7 @@ export type McpServerLaunch =
 export namespace McpServerLaunch {
 	export type Serialized =
 		| { type: McpServerTransportType.HTTP; uri: UriComponents; headers: [string, string][]; authentication?: McpServerTransportHTTPAuthentication }
-		| { type: McpServerTransportType.Stdio; cwd: string | undefined; command: string; args: readonly string[]; env: Record<string, string | number | null>; envFile: string | undefined };
+		| { type: McpServerTransportType.Stdio; cwd: string | undefined; command: string; args: readonly string[]; env: Record<string, string | number | null>; envFile: string | undefined; sandbox: IMcpSandboxConfiguration | undefined };
 
 	export function toSerialized(launch: McpServerLaunch): McpServerLaunch.Serialized {
 		return launch;
@@ -569,6 +566,7 @@ export namespace McpServerLaunch {
 					args: launch.args,
 					env: launch.env,
 					envFile: launch.envFile,
+					sandbox: launch.sandbox
 				};
 		}
 	}
diff --git a/src/vs/workbench/contrib/mcp/test/common/mcpIcons.test.ts b/src/vs/workbench/contrib/mcp/test/common/mcpIcons.test.ts
index 7cdb2b661d0..90430507be1 100644
--- a/src/vs/workbench/contrib/mcp/test/common/mcpIcons.test.ts
+++ b/src/vs/workbench/contrib/mcp/test/common/mcpIcons.test.ts
@@ -22,7 +22,8 @@ const createStdioLaunch = (): McpServerTransportStdio => ({
 	command: 'cmd',
 	args: [],
 	env: {},
-	envFile: undefined
+	envFile: undefined,
+	sandbox: undefined
 });
 
 suite('MCP Icons', () => {
diff --git a/src/vs/workbench/contrib/mcp/test/common/mcpRegistry.test.ts b/src/vs/workbench/contrib/mcp/test/common/mcpRegistry.test.ts
index e052e97d131..722a4ee2fe7 100644
--- a/src/vs/workbench/contrib/mcp/test/common/mcpRegistry.test.ts
+++ b/src/vs/workbench/contrib/mcp/test/common/mcpRegistry.test.ts
@@ -239,6 +239,7 @@ suite('Workbench - MCP - Registry', () => {
 				env: {},
 				envFile: undefined,
 				cwd: '/test',
+				sandbox: undefined
 			}
 		};
 	});
@@ -301,6 +302,7 @@ suite('Workbench - MCP - Registry', () => {
 				},
 				envFile: undefined,
 				cwd: '/test',
+				sandbox: undefined
 			},
 			variableReplacement: {
 				section: 'mcp',
@@ -402,6 +404,7 @@ suite('Workbench - MCP - Registry', () => {
 				env: {},
 				envFile: undefined,
 				cwd: '/test',
+				sandbox: undefined
 			},
 		};
 
@@ -726,6 +729,7 @@ suite('Workbench - MCP - Registry', () => {
 					env: {},
 					envFile: undefined,
 					cwd: '/test',
+					sandbox: undefined
 				}
 			};
 		}
diff --git a/src/vs/workbench/contrib/mcp/test/common/mcpRegistryTypes.ts b/src/vs/workbench/contrib/mcp/test/common/mcpRegistryTypes.ts
index 2648adedeb4..69b07fdf55f 100644
--- a/src/vs/workbench/contrib/mcp/test/common/mcpRegistryTypes.ts
+++ b/src/vs/workbench/contrib/mcp/test/common/mcpRegistryTypes.ts
@@ -171,7 +171,7 @@ export class TestMcpRegistry implements IMcpRegistry {
 		serverDefinitions: observableValue(this, [{
 			id: 'test-server',
 			label: 'Test Server',
-			launch: { type: McpServerTransportType.Stdio, command: 'echo', args: ['Hello MCP'], env: {}, envFile: undefined, cwd: undefined },
+			launch: { type: McpServerTransportType.Stdio, command: 'echo', args: ['Hello MCP'], env: {}, envFile: undefined, cwd: undefined, sandbox: undefined },
 			cacheNonce: 'a',
 		} satisfies McpServerDefinition]),
 		trustBehavior: McpServerTrust.Kind.Trusted,
diff --git a/src/vs/workbench/contrib/mcp/test/common/mcpServerConnection.test.ts b/src/vs/workbench/contrib/mcp/test/common/mcpServerConnection.test.ts
index 33114bc70d4..44f180efe2f 100644
--- a/src/vs/workbench/contrib/mcp/test/common/mcpServerConnection.test.ts
+++ b/src/vs/workbench/contrib/mcp/test/common/mcpServerConnection.test.ts
@@ -108,7 +108,8 @@ suite('Workbench - MCP - ServerConnection', () => {
 				args: [],
 				env: {},
 				envFile: undefined,
-				cwd: '/test'
+				cwd: '/test',
+				sandbox: undefined
 			}
 		};
 	});
diff --git a/src/vs/workbench/contrib/mcp/test/common/mcpTypes.test.ts b/src/vs/workbench/contrib/mcp/test/common/mcpTypes.test.ts
index b73a1d48fb5..d7a6d11283b 100644
--- a/src/vs/workbench/contrib/mcp/test/common/mcpTypes.test.ts
+++ b/src/vs/workbench/contrib/mcp/test/common/mcpTypes.test.ts
@@ -40,7 +40,8 @@ suite('MCP Types', () => {
 				command: 'test-command',
 				args: [],
 				env: {},
-				envFile: undefined
+				envFile: undefined,
+				sandbox: undefined
 			},
 			...overrides
 		});
@@ -89,7 +90,8 @@ suite('MCP Types', () => {
 					command: 'command1',
 					args: [],
 					env: {},
-					envFile: undefined
+					envFile: undefined,
+					sandbox: undefined
 				}
 			});
 			const def2 = createBasicDefinition({
@@ -99,7 +101,8 @@ suite('MCP Types', () => {
 					command: 'command2',
 					args: [],
 					env: {},
-					envFile: undefined
+					envFile: undefined,
+					sandbox: undefined
 				}
 			});
 			assert.strictEqual(McpServerDefinition.equals(def1, def2), false);