diff --git a/.changeset/mcperror-double-prefix.md b/.changeset/mcperror-double-prefix.md
new file mode 100644
index 0000000000..2848b8b127
--- /dev/null
+++ b/.changeset/mcperror-double-prefix.md
@@ -0,0 +1,5 @@
+---
+'@modelcontextprotocol/sdk': patch
+---
+
+Fix v1 server sending McpError messages with a doubled prefix on the wire
diff --git a/src/shared/protocol.ts b/src/shared/protocol.ts
index 2637be65bc..6d42522ad4 100644
--- a/src/shared/protocol.ts
+++ b/src/shared/protocol.ts
@@ -822,7 +822,10 @@ export abstract class Protocol<SendRequestT extends Request, SendNotificationT e
                         id: request.id,
                         error: {
                             code: Number.isSafeInteger(error['code']) ? error['code'] : ErrorCode.InternalError,
-                            message: error.message ?? 'Internal error',
+                            // McpError.message already carries the `MCP error <code>:` prefix, which is
+                            // reconstructed by the receiving peer; send the original message instead of
+                            // leaking the local prefixed form onto the wire (#2786).
+                            message: error instanceof McpError ? error.originalMessage : (error.message ?? 'Internal error'),
                             ...(error['data'] !== undefined && { data: error['data'] })
                         }
                     };
diff --git a/src/types.ts b/src/types.ts
index 835eac89f8..6dabc1aa63 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -2305,6 +2305,13 @@ export const ServerResultSchema = z.union([
 ]);
 
 export class McpError extends Error {
+    /**
+     * The message exactly as passed to the constructor, without the
+     * `MCP error <code>:` prefix that `.message` carries. Peers reconstruct
+     * the prefixed form from `code`, so this is what belongs on the wire.
+     */
+    public readonly originalMessage: string;
+
     constructor(
         public readonly code: number,
         message: string,
@@ -2312,6 +2319,7 @@ export class McpError extends Error {
     ) {
         super(`MCP error ${code}: ${message}`);
         this.name = 'McpError';
+        this.originalMessage = message;
     }
 
     /**
diff --git a/test/issues/test_2786_mcp_error_wire_message.test.ts b/test/issues/test_2786_mcp_error_wire_message.test.ts
new file mode 100644
index 0000000000..6f48087cee
--- /dev/null
+++ b/test/issues/test_2786_mcp_error_wire_message.test.ts
@@ -0,0 +1,49 @@
+import { Client } from '../../src/client/index.js';
+import { InMemoryTransport } from '../../src/inMemory.js';
+import { Server } from '../../src/server/index.js';
+import { CallToolRequestSchema, ErrorCode, McpError, type JSONRPCError } from '../../src/types.js';
+
+describe('Issue #2786: a handler-thrown McpError must not be double-prefixed', () => {
+    test('wire message carries the original message; client reconstructs a single prefix', async () => {
+        const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+        const server = new Server({ name: 'test-server', version: '1.0.0' }, { capabilities: { tools: {} } });
+        const client = new Client({ name: 'test-client', version: '1.0.0' });
+
+        server.setRequestHandler(CallToolRequestSchema, async () => {
+            throw new McpError(ErrorCode.MethodNotFound, 'Unknown tool: nope');
+        });
+
+        // Capture the raw JSON-RPC error the server puts on the wire.
+        const wireErrors: JSONRPCError[] = [];
+        const originalSend = serverTransport.send.bind(serverTransport);
+        serverTransport.send = async message => {
+            if ('error' in message) {
+                wireErrors.push(message);
+            }
+            return originalSend(message);
+        };
+
+        await Promise.all([server.connect(serverTransport), client.connect(clientTransport)]);
+
+        let caught: unknown;
+        try {
+            await client.callTool({ name: 'nope', arguments: {} });
+        } catch (error) {
+            caught = error;
+        } finally {
+            await Promise.all([client.close(), server.close()]);
+        }
+
+        // The wire carries the original message, without the local `MCP error <code>:` prefix...
+        expect(wireErrors).toHaveLength(1);
+        expect(wireErrors[0]?.error.code).toBe(ErrorCode.MethodNotFound);
+        expect(wireErrors[0]?.error.message).toBe('Unknown tool: nope');
+
+        // ...and the client reconstructs exactly one prefix.
+        expect(caught).toBeInstanceOf(McpError);
+        const mcpError = caught as McpError;
+        expect(mcpError.code).toBe(ErrorCode.MethodNotFound);
+        expect(mcpError.message).toBe('MCP error -32601: Unknown tool: nope');
+        expect(mcpError.originalMessage).toBe('Unknown tool: nope');
+    });
+});