diff --git a/examples/mcp/package.json b/examples/mcp/package.json
index 9b986c9f2..88c171778 100644
--- a/examples/mcp/package.json
+++ b/examples/mcp/package.json
@@ -30,7 +30,7 @@
     "@microsoft/teams.graph": "2.0.5",
     "@microsoft/teams.mcp": "2.0.5",
     "@microsoft/teams.openai": "2.0.5",
-    "@modelcontextprotocol/sdk": "^1.9.0",
+    "@modelcontextprotocol/sdk": "^1.25.2",
     "zod": "^3.24.3"
   },
   "devDependencies": {
diff --git a/examples/mcpclient/package.json b/examples/mcpclient/package.json
index 8420ec7d3..ad0c27098 100644
--- a/examples/mcpclient/package.json
+++ b/examples/mcpclient/package.json
@@ -23,7 +23,7 @@
     "@microsoft/teams.dev": "2.0.5",
     "@microsoft/teams.mcpclient": "2.0.5",
     "@microsoft/teams.openai": "2.0.5",
-    "@modelcontextprotocol/sdk": "^1.13.0"
+    "@modelcontextprotocol/sdk": "^1.25.2"
   },
   "devDependencies": {
     "@types/node": "^22.5.4",
diff --git a/examples/mcpclient/src/index.ts b/examples/mcpclient/src/index.ts
index c01cf53ae..b5c687448 100644
--- a/examples/mcpclient/src/index.ts
+++ b/examples/mcpclient/src/index.ts
@@ -16,8 +16,10 @@ const prompt = new ChatPrompt(
     instructions:
       'You are a helpful assistant. You MUST use tool calls to do all your work.',
     model: new OpenAIChatModel({
-      model: 'gpt-4o-mini',
-      apiKey: process.env.OPENAI_API_KEY,
+      apiKey: process.env.AZURE_OPENAI_API_KEY || process.env.OPENAI_API_KEY,
+      endpoint: process.env.AZURE_OPENAI_ENDPOINT,
+      apiVersion: process.env.AZURE_OPENAI_API_VERSION,
+      model: process.env.AZURE_OPENAI_MODEL_DEPLOYMENT_NAME!,
     }),
     logger
   },
diff --git a/package-lock.json b/package-lock.json
index 0ad79eb3f..71a9ca368 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -207,7 +207,7 @@
         "@microsoft/teams.graph": "2.0.5",
         "@microsoft/teams.mcp": "2.0.5",
         "@microsoft/teams.openai": "2.0.5",
-        "@modelcontextprotocol/sdk": "^1.9.0",
+        "@modelcontextprotocol/sdk": "^1.25.2",
         "zod": "^3.24.3"
       },
       "devDependencies": {
@@ -232,7 +232,7 @@
         "@microsoft/teams.dev": "2.0.5",
         "@microsoft/teams.mcpclient": "2.0.5",
         "@microsoft/teams.openai": "2.0.5",
-        "@modelcontextprotocol/sdk": "^1.13.0"
+        "@modelcontextprotocol/sdk": "^1.25.2"
       },
       "devDependencies": {
         "@types/node": "^22.5.4",
@@ -4104,6 +4104,18 @@
         "csstype": "^3.1.3"
       }
     },
+    "node_modules/@hono/node-server": {
+      "version": "1.19.9",
+      "resolved": "https://registry.npmjs.org/@hono/node-server/-/node-server-1.19.9.tgz",
+      "integrity": "sha512-vHL6w3ecZsky+8P5MD+eFfaGTyCeOHUIFYMGpQGbrBTSmNNoxv0if69rEZ5giu36weC5saFuznL411gRX7bJDw==",
+      "license": "MIT",
+      "engines": {
+        "node": ">=18.14.1"
+      },
+      "peerDependencies": {
+        "hono": "^4"
+      }
+    },
     "node_modules/@humanfs/core": {
       "version": "0.19.1",
       "resolved": "https://registry.npmjs.org/@humanfs/core/-/core-0.19.1.tgz",
@@ -5419,11 +5431,12 @@
       }
     },
     "node_modules/@modelcontextprotocol/sdk": {
-      "version": "1.24.3",
-      "resolved": "https://registry.npmjs.org/@modelcontextprotocol/sdk/-/sdk-1.24.3.tgz",
-      "integrity": "sha512-YgSHW29fuzKKAHTGe9zjNoo+yF8KaQPzDC2W9Pv41E7/57IfY+AMGJ/aDFlgTLcVVELoggKE4syABCE75u3NCw==",
+      "version": "1.25.2",
+      "resolved": "https://registry.npmjs.org/@modelcontextprotocol/sdk/-/sdk-1.25.2.tgz",
+      "integrity": "sha512-LZFeo4F9M5qOhC/Uc1aQSrBHxMrvxett+9KLHt7OhcExtoiRN9DKgbZffMP/nxjutWDQpfMDfP3nkHI4X9ijww==",
       "license": "MIT",
       "dependencies": {
+        "@hono/node-server": "^1.19.7",
         "ajv": "^8.17.1",
         "ajv-formats": "^3.0.1",
         "content-type": "^1.0.5",
@@ -5434,6 +5447,7 @@
         "express": "^5.0.1",
         "express-rate-limit": "^7.5.0",
         "jose": "^6.1.1",
+        "json-schema-typed": "^8.0.2",
         "pkce-challenge": "^5.0.0",
         "raw-body": "^3.0.0",
         "zod": "^3.25 || ^4.0",
@@ -13436,6 +13450,16 @@
         "minimalistic-crypto-utils": "^1.0.1"
       }
     },
+    "node_modules/hono": {
+      "version": "4.11.5",
+      "resolved": "https://registry.npmjs.org/hono/-/hono-4.11.5.tgz",
+      "integrity": "sha512-WemPi9/WfyMwZs+ZUXdiwcCh9Y+m7L+8vki9MzDw3jJ+W9Lc+12HGsd368Qc1vZi1xwW8BWMMsnK5efYKPdt4g==",
+      "license": "MIT",
+      "peer": true,
+      "engines": {
+        "node": ">=16.9.0"
+      }
+    },
     "node_modules/html-escaper": {
       "version": "2.0.2",
       "resolved": "https://registry.npmjs.org/html-escaper/-/html-escaper-2.0.2.tgz",
@@ -15356,6 +15380,12 @@
       "integrity": "sha512-NM8/P9n3XjXhIZn1lLhkFaACTOURQXjWhV4BA/RnOv8xvgqtqpAX9IO4mRQxSx1Rlo4tqzeqb0sOlruaOy3dug==",
       "license": "MIT"
     },
+    "node_modules/json-schema-typed": {
+      "version": "8.0.2",
+      "resolved": "https://registry.npmjs.org/json-schema-typed/-/json-schema-typed-8.0.2.tgz",
+      "integrity": "sha512-fQhoXdcvc3V28x7C7BMs4P5+kNlgUURe2jmUT1T//oBRMDrqy1QPelJimwZGo7Hg9VPV3EQV5Bnq4hbFy2vetA==",
+      "license": "BSD-2-Clause"
+    },
     "node_modules/json-stable-stringify-without-jsonify": {
       "version": "1.0.1",
       "resolved": "https://registry.npmjs.org/json-stable-stringify-without-jsonify/-/json-stable-stringify-without-jsonify-1.0.1.tgz",
diff --git a/packages/cli/templates/typescript/mcp/package.json.hbs b/packages/cli/templates/typescript/mcp/package.json.hbs
index fdbe79975..dcf5fb3ca 100644
--- a/packages/cli/templates/typescript/mcp/package.json.hbs
+++ b/packages/cli/templates/typescript/mcp/package.json.hbs
@@ -26,7 +26,7 @@
 "@microsoft/teams.graph": "latest",
 "@microsoft/teams.mcp": "latest",
 "@microsoft/teams.openai": "latest",
-"@modelcontextprotocol/sdk": "^1.7.0"
+"@modelcontextprotocol/sdk": "^1.25.2"
 },
 "devDependencies": {
 "@modelcontextprotocol/inspector": "^0.6.0",
diff --git a/packages/cli/templates/typescript/mcpclient/package.json.hbs b/packages/cli/templates/typescript/mcpclient/package.json.hbs
index 24b17979a..bfefbdd97 100644
--- a/packages/cli/templates/typescript/mcpclient/package.json.hbs
+++ b/packages/cli/templates/typescript/mcpclient/package.json.hbs
@@ -24,7 +24,7 @@
 "@microsoft/teams.graph": "latest",
 "@microsoft/teams.mcpclient": "latest",
 "@microsoft/teams.openai": "latest",
-"@modelcontextprotocol/sdk": "^1.9.0"
+"@modelcontextprotocol/sdk": "^1.25.2"
 },
 "devDependencies": {
 "@types/node": "^22.5.4",
diff --git a/packages/cli/templates/typescript/mcpclient/src/index.ts.hbs b/packages/cli/templates/typescript/mcpclient/src/index.ts.hbs
index ac4966e65..f3d130b59 100644
--- a/packages/cli/templates/typescript/mcpclient/src/index.ts.hbs
+++ b/packages/cli/templates/typescript/mcpclient/src/index.ts.hbs
@@ -18,8 +18,10 @@ const prompt = new ChatPrompt(
     instructions:
       "You are a helpful assistant. You MUST use tool calls to do all your work.",
     model: new OpenAIChatModel({
-      model: "gpt-4o-mini",
-      apiKey: process.env.OPENAI_API_KEY,
+      apiKey: process.env.AZURE_OPENAI_API_KEY || process.env.OPENAI_API_KEY,
+      endpoint: process.env.AZURE_OPENAI_ENDPOINT,
+      apiVersion: process.env.AZURE_OPENAI_API_VERSION,
+      model: process.env.AZURE_OPENAI_MODEL_DEPLOYMENT_NAME!,
     }),
     logger
   },