Cursor agent not picking up mcp.json from project

[TM53474238]

Where does the bug appear (feature/product)?

Cursor CLI

Describe the Bug

If I put my mcp.json in ~/.cursor then the cursor cli agent picks it up as expected using “agent mcp list”. When I put it in my project directories .cursor directory then when I run “agent mcp list” it does not pick it up. I am running agent from the project directory.

I have tried adding --approve-mcps and --trust and also setting CURSOR_CONFIG_DIR to the project directory. But I cannot get it to pick up the mcp file.

I am on version 2026.03.30-a5d3e17

Steps to Reproduce

cd to the project directory
Create a .cursor directory in your project directory
add a mcp.json file to the .cursor directory
agent mcp list

Expected Behavior

I expect the mcp to be picked up when agent mcp list is used and when --approve-mcps I expect it to enable the mcps that in the project directory as well as in the home .cursor.

Operating System

Linux

Version Information

2026.03.30-a5d3e17

Does this stop you from using Cursor

Yes - Cursor is unusable

[deanrie]

Hey, thanks for the report. This is a known issue. The CLI agent isn’t picking up mcp.json from the project-level .cursor/ directory right now. The team is aware.

As a workaround for now, use ~/.cursor/mcp.json (the global config). You can move the MCP servers you need there, and agent mcp list will see them.

CURSOR_CONFIG_DIR and the --approve-mcps / --trust flags don’t affect this. They’re for something else.

Let me know if the workaround helps unblock you.

[beikuzi]