diff --git a/docs/handlers/cancellation.md b/docs/handlers/cancellation.md
new file mode 100644
index 0000000000..2e20ccbf6d
--- /dev/null
+++ b/docs/handlers/cancellation.md
@@ -0,0 +1,55 @@
+# Cancellation
+
+A client can give up on a call: the user pressed stop, or a timeout ran out.
+
+When it does, the SDK **cancels your handler**. The `await` it is waiting on raises, the function unwinds, and nothing it returns is sent. Most handlers need to do nothing about that.
+
+Two kinds do: a handler with something to clean up, and a handler that is a plain `def`.
+
+## Clean up in an `async def` tool
+
+Put the cleanup in a `finally`:
+
+```python title="server.py" hl_lines="23 26-28"
+--8<-- "docs_src/cancellation/tutorial001.py"
+```
+
+* The `finally` runs however the tool ends: it returned, it raised, or it was cancelled.
+* Cleanup that has to `await` needs `shield=True`. In a cancelled handler every further `await` raises too, so without the shield `release_hold` would stop at its first line.
+* Nothing can cancel a shielded block, so give it a time limit. Here that is `5` seconds.
+
+!!! tip
+    Reach for `finally`, not `except`. The cancellation has to keep travelling up once your cleanup
+    is done, and a `finally` lets it.
+
+## Stop early in a plain `def` tool
+
+A plain `def` tool runs in a thread, and nothing can interrupt a thread from outside. The tool has to ask:
+
+```python title="server.py" hl_lines="22 25-26"
+--8<-- "docs_src/cancellation/tutorial002.py"
+```
+
+* `anyio.from_thread.check_cancelled()` does nothing while the call is live, and raises once it has been cancelled. Call it between units of work.
+* Cleanup goes in a `finally` here too. Nothing in a thread awaits, so it needs no shield.
+* A `def` tool that never asks runs to the end, and its result is thrown away.
+
+## Where it applies
+
+Prompt and resource functions are cancelled exactly like tools.
+
+It works the same over stdio and Streamable HTTP. With this SDK's `Client`, giving up means cancelling the task that awaits `call_tool`, or letting its `read_timeout_seconds` run out.
+
+!!! warning
+    Two Streamable HTTP options keep the news from your handler: `json_response=True` on a
+    `2026-07-28` connection, and `stateless_http=True` on a legacy one. There the handler runs to
+    the end whatever the client did.
+
+## Recap
+
+* When the client gives up on a call, the SDK cancels the handler: tool, prompt or resource.
+* `async def`: clean up in a `finally`, and put cleanup that awaits inside `anyio.move_on_after(seconds, shield=True)`.
+* Plain `def`: call `anyio.from_thread.check_cancelled()` between units of work, or the tool runs to the end. A plain `finally` cleans up.
+* `json_response=True` (modern connections) and `stateless_http=True` (legacy ones) switch cancellation off.
+
+Progress and cancellation are between a running tool and its *caller*. The lines it logs for *you*, the person operating the server, are a different channel: **[Logging](logging.md)**.
diff --git a/docs/handlers/index.md b/docs/handlers/index.md
index daf9fde19a..4e075a331f 100644
--- a/docs/handlers/index.md
+++ b/docs/handlers/index.md
@@ -22,6 +22,8 @@ What it can do while it runs:
   **[Sampling and roots](sampling-and-roots.md)**, deprecated but still
   served.
 * Report **[Progress](progress.md)** on something slow.
+* Clean up, or stop early, when the client gives up on the call, with
+  **[Cancellation](cancellation.md)**.
 * Write logs (to standard error, for whoever operates the server) with
   **[Logging](logging.md)**.
 * Tell subscribed clients that something changed with
diff --git a/docs/handlers/progress.md b/docs/handlers/progress.md
index d48b4c6ab1..a5a6c123d5 100644
--- a/docs/handlers/progress.md
+++ b/docs/handlers/progress.md
@@ -115,4 +115,4 @@ The callback receives `total=None`. A client can still show *activity* ("3 impor
 * No callback on the call means `report_progress` does nothing. Report unconditionally.
 * Omit `total` when you don't know it; the callback gets `None`.
 
-Progress is what a running tool shows the *user*. The lines it logs for *you*, the person operating the server, are a different channel: **[Logging](logging.md)**.
+Progress is for a client that is still waiting. What your tool sees when the client stops waiting is **[Cancellation](cancellation.md)**.
diff --git a/docs/servers/tools.md b/docs/servers/tools.md
index f434389145..445700266e 100644
--- a/docs/servers/tools.md
+++ b/docs/servers/tools.md
@@ -136,7 +136,7 @@ You can mix and match: plain parameters next to model parameters, nested models,
 
 If a tool does I/O (calls an API, reads a file, queries a database), declare it `async def` and `await` inside it. The SDK awaits it.
 
-A plain `def` tool works too: the SDK runs it in a thread so it never blocks the server.
+A plain `def` tool works too: the SDK runs it in a thread so it never blocks the server. A long one can check whether the client is still waiting; see **[Cancellation](../handlers/cancellation.md)**.
 
 There is nothing else to configure.
 
diff --git a/docs_src/cancellation/__init__.py b/docs_src/cancellation/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/docs_src/cancellation/tutorial001.py b/docs_src/cancellation/tutorial001.py
new file mode 100644
index 0000000000..258d255d2f
--- /dev/null
+++ b/docs_src/cancellation/tutorial001.py
@@ -0,0 +1,28 @@
+import anyio
+
+from mcp.server import MCPServer
+
+mcp = MCPServer("Bookshop")
+
+holds: set[str] = set()
+
+
+async def take_payment(title: str) -> None:
+    await anyio.sleep(30)  # the customer is typing a card number
+
+
+async def release_hold(title: str) -> None:
+    await anyio.sleep(0.1)  # a round trip to the stock system
+    holds.discard(title)
+
+
+@mcp.tool()
+async def order_book(title: str) -> str:
+    """Hold a copy of a book while the customer pays for it."""
+    holds.add(title)
+    try:
+        await take_payment(title)
+        return f"Ordered {title!r}."
+    finally:
+        with anyio.move_on_after(5, shield=True):
+            await release_hold(title)
diff --git a/docs_src/cancellation/tutorial002.py b/docs_src/cancellation/tutorial002.py
new file mode 100644
index 0000000000..4aedec982d
--- /dev/null
+++ b/docs_src/cancellation/tutorial002.py
@@ -0,0 +1,26 @@
+import time
+
+import anyio.from_thread
+
+from mcp.server import MCPServer
+
+mcp = MCPServer("Bookshop")
+
+offline: set[str] = set()
+
+
+def index_book(title: str) -> None:
+    time.sleep(1)  # slow work with nothing to await
+
+
+@mcp.tool()
+def rebuild_index(titles: list[str]) -> str:
+    """Take search offline and rebuild its index, one book at a time."""
+    offline.add("search")
+    try:
+        for title in titles:
+            anyio.from_thread.check_cancelled()
+            index_book(title)
+        return f"Indexed {len(titles)} books."
+    finally:
+        offline.discard("search")
diff --git a/mkdocs.yml b/mkdocs.yml
index a75053326f..5d8a2b02b3 100644
--- a/mkdocs.yml
+++ b/mkdocs.yml
@@ -40,6 +40,7 @@ nav:
       - Multi-round-trip requests: handlers/multi-round-trip.md
       - Sampling and roots: handlers/sampling-and-roots.md
       - Progress: handlers/progress.md
+      - Cancellation: handlers/cancellation.md
       - Logging: handlers/logging.md
       - Subscriptions: handlers/subscriptions.md
   - Running your server:
diff --git a/tests/docs_src/test_cancellation.py b/tests/docs_src/test_cancellation.py
new file mode 100644
index 0000000000..e28cc77c11
--- /dev/null
+++ b/tests/docs_src/test_cancellation.py
@@ -0,0 +1,234 @@
+"""`docs/handlers/cancellation.md`: every claim the page makes, proved against the real SDK."""
+
+import threading
+from collections.abc import Awaitable, Callable
+
+import anyio
+import anyio.from_thread
+import pytest
+from mcp_types import REQUEST_TIMEOUT
+
+from docs_src.cancellation import tutorial001, tutorial002
+from mcp import Client, MCPError
+from mcp.client.streamable_http import streamable_http_client
+from mcp.server import MCPServer
+from tests.interaction._connect import BASE_URL, mounted_app
+
+# See test_index.py for why this is a per-module mark and not a conftest hook.
+pytestmark = [pytest.mark.anyio, pytest.mark.filterwarnings("error::mcp.MCPDeprecationWarning")]
+
+# "auto" dispatches in process; "legacy" puts a JSON-RPC stream, and so a cancellation message, in between.
+both_connections = pytest.mark.parametrize("mode", ["auto", "legacy"])
+
+TITLES = ["Dune", "Emma", "Ulysses"]
+
+
+async def abandon(
+    call: Callable[[], Awaitable[object]], started: anyio.Event, then: Callable[[], object] = lambda: None
+) -> None:
+    """Start `call`, cancel the task awaiting it once `started` is set, let the server settle, then run `then`."""
+    scope = anyio.CancelScope()
+
+    async def doomed() -> None:
+        with scope:
+            await call()
+            raise NotImplementedError  # unreachable: the call never resolves
+
+    async with anyio.create_task_group() as tg:
+        tg.start_soon(doomed)
+        await started.wait()
+        scope.cancel()
+        await anyio.wait_all_tasks_blocked()
+        then()
+
+
+@pytest.fixture
+def payment_started(monkeypatch: pytest.MonkeyPatch) -> anyio.Event:
+    """Replace tutorial001's `take_payment` with one that says the tool reached it and then never finishes."""
+    started = anyio.Event()
+
+    async def take_payment(title: str) -> None:
+        assert title in tutorial001.holds
+        started.set()
+        await anyio.sleep_forever()
+
+    monkeypatch.setattr(tutorial001, "take_payment", take_payment)
+    return started
+
+
+@pytest.fixture
+def hold_released(monkeypatch: pytest.MonkeyPatch) -> anyio.Event:
+    """Wrap tutorial001's own `release_hold` so the test can wait for it to reach its last line."""
+    released = anyio.Event()
+    release_hold = tutorial001.release_hold
+
+    async def announcing_release_hold(title: str) -> None:
+        await release_hold(title)
+        released.set()
+
+    monkeypatch.setattr(tutorial001, "release_hold", announcing_release_hold)
+    return released
+
+
+@both_connections
+async def test_abandoning_the_call_runs_the_shielded_cleanup_to_the_end(
+    mode: str, payment_started: anyio.Event, hold_released: anyio.Event
+) -> None:
+    """tutorial001: the client gives up mid-payment, and the `finally` still awaits `release_hold` to completion."""
+    with anyio.fail_after(5):
+        async with Client(tutorial001.mcp, mode=mode) as client:
+            await abandon(lambda: client.call_tool("order_book", {"title": "Dune"}), payment_started)
+            await hold_released.wait()
+    assert tutorial001.holds == set()
+
+
+@pytest.mark.parametrize("mode", ["2026-07-28", "legacy"])
+async def test_abandoning_the_call_over_streamable_http_runs_the_cleanup_too(
+    mode: str, payment_started: anyio.Event, hold_released: anyio.Event
+) -> None:
+    """The last section: with the default options, either era's way of cancelling over HTTP reaches tutorial001."""
+    with anyio.fail_after(5):
+        async with (
+            mounted_app(tutorial001.mcp) as (http, _),
+            Client(streamable_http_client(f"{BASE_URL}/mcp", http_client=http), mode=mode) as client,
+        ):
+            await abandon(lambda: client.call_tool("order_book", {"title": "Dune"}), payment_started)
+            await hold_released.wait()
+            # Let the legacy transport's late answer to the abandoned call land while the client is still open.
+            await anyio.wait_all_tasks_blocked()
+    assert tutorial001.holds == set()
+
+
+@both_connections
+async def test_a_client_timeout_cancels_the_tool_the_same_way(
+    mode: str, payment_started: anyio.Event, hold_released: anyio.Event
+) -> None:
+    """The last section: `read_timeout_seconds` running out is the other way this SDK's client gives up."""
+    with anyio.fail_after(5):
+        async with Client(tutorial001.mcp, mode=mode) as client:
+            with pytest.raises(MCPError) as exc_info:
+                # The tool never answers, so any positive timeout expires; this one adds no wall-clock time.
+                await client.call_tool("order_book", {"title": "Dune"}, read_timeout_seconds=0.000001)
+            await hold_released.wait()
+    assert exc_info.value.error.code == REQUEST_TIMEOUT
+    assert payment_started.is_set()
+    assert tutorial001.holds == set()
+
+
+@both_connections
+async def test_check_cancelled_stops_a_def_tool_at_its_next_check(mode: str, monkeypatch: pytest.MonkeyPatch) -> None:
+    """tutorial002: cancelled during the first book, the loop raises at its next check and the `finally` cleans up."""
+    started = anyio.Event()
+    resume = threading.Event()
+    indexed: list[str] = []
+
+    def index_book(title: str) -> None:
+        assert tutorial002.offline == {"search"}
+        indexed.append(title)
+        anyio.from_thread.run_sync(started.set)
+        assert resume.wait(5)
+
+    monkeypatch.setattr(tutorial002, "index_book", index_book)
+    with anyio.fail_after(5):
+        # Leaving the block waits for the tool's thread, so what it left behind is final after it.
+        async with Client(tutorial002.mcp, mode=mode) as client:
+            await abandon(lambda: client.call_tool("rebuild_index", {"titles": TITLES}), started, then=resume.set)
+    assert indexed == ["Dune"]
+    assert tutorial002.offline == set()
+
+
+async def test_a_def_tool_nobody_cancels_indexes_every_book_and_cleans_up(monkeypatch: pytest.MonkeyPatch) -> None:
+    """tutorial002: while the call is live the checks do nothing, and the `finally` runs on a normal finish too."""
+    indexed: list[str] = []
+    monkeypatch.setattr(tutorial002, "index_book", indexed.append)
+    async with Client(tutorial002.mcp) as client:
+        result = await client.call_tool("rebuild_index", {"titles": TITLES})
+    assert result.structured_content == {"result": "Indexed 3 books."}
+    assert indexed == TITLES
+    assert tutorial002.offline == set()
+
+
+async def test_a_def_tool_that_never_checks_runs_to_the_end() -> None:
+    """The `def` section's last bullet: nothing interrupts the thread, so the tool outlives its own cancellation."""
+    started = anyio.Event()
+    resume = threading.Event()
+    finished: list[str] = []
+    mcp = MCPServer("Bookshop")
+
+    @mcp.tool()
+    def rebuild_index() -> str:
+        anyio.from_thread.run_sync(started.set)
+        assert resume.wait(5)
+        finished.append("rebuild_index")
+        return "Indexed 3 books."
+
+    with anyio.fail_after(5):
+        async with Client(mcp, mode="legacy") as client:
+            await abandon(lambda: client.call_tool("rebuild_index", {}), started, then=resume.set)
+    assert finished == ["rebuild_index"]
+
+
+async def test_prompt_and_resource_functions_are_cancelled_like_tools() -> None:
+    """The last section: a prompt or a resource function parked on an `await` is cancelled when the client gives up."""
+    started = {"blurb": anyio.Event(), "stock": anyio.Event()}
+    cancelled = {"blurb": anyio.Event(), "stock": anyio.Event()}
+    mcp = MCPServer("Bookshop")
+
+    async def park(name: str) -> str:
+        started[name].set()
+        try:
+            await anyio.sleep_forever()
+        finally:
+            cancelled[name].set()
+        raise NotImplementedError  # unreachable: only cancellation ends the sleep
+
+    @mcp.prompt()
+    async def blurb() -> str:
+        return await park("blurb")
+
+    @mcp.resource("stock://all")
+    async def stock() -> str:
+        return await park("stock")
+
+    with anyio.fail_after(5):
+        async with Client(mcp, mode="legacy") as client:
+            await abandon(lambda: client.get_prompt("blurb"), started["blurb"])
+            await cancelled["blurb"].wait()
+            await abandon(lambda: client.read_resource("stock://all"), started["stock"])
+            await cancelled["stock"].wait()
+
+
+@pytest.mark.parametrize(
+    ("json_response", "stateless_http", "mode"),
+    [(True, False, "2026-07-28"), (False, True, "legacy")],
+    ids=["json_response-modern", "stateless_http-legacy"],
+)
+async def test_two_http_options_keep_the_cancellation_from_the_handler(
+    json_response: bool, stateless_http: bool, mode: str
+) -> None:
+    """The `!!! warning`: on these two pairings the abandoned tool is still there once everything has settled.
+
+    Pins known gaps. A stateless legacy server has no session in which to find the request that
+    `notifications/cancelled` names. In JSON-response mode the 2026-07-28 entry does not watch for
+    the disconnect that is that revision's cancellation signal; if that arm starts timing out, the
+    gap was closed and the warning should lose that half.
+    """
+    started = anyio.Event()
+    resume = anyio.Event()
+    finished = anyio.Event()
+    mcp = MCPServer("Bookshop")
+
+    @mcp.tool()
+    async def order_book() -> str:
+        started.set()
+        await resume.wait()
+        finished.set()
+        return "Ordered."
+
+    with anyio.fail_after(5):
+        async with (
+            mounted_app(mcp, json_response=json_response, stateless_http=stateless_http) as (http, _),
+            Client(streamable_http_client(f"{BASE_URL}/mcp", http_client=http), mode=mode) as client,
+        ):
+            await abandon(lambda: client.call_tool("order_book", {}), started, then=resume.set)
+            await finished.wait()