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In this video, I'll be explaining the new MCP Tool Search feature in Claude Code, which solves one of the biggest problems with using multiple MCP servers: context window exhaustion. I'll show you how this update allows for dynamic tool loading, saving massive amounts of tokens while improving tool selection accuracy. -- Key Takeaways: š Claude Code now solves the context window exhaustion issue with the new MCP Tool Search feature. š§ Instead of loading all tools upfront, Claude now dynamically discovers and loads tools on-demand. š Token usage is reduced by around 85%, preserving over 190k tokens of context for your actual work. šÆ Tool selection accuracy has improved significantly, with Opus 4.5 jumping to 88.1% accuracy. š The feature uses client-side similarity search (Regex or BM25) to find relevant tools efficiently. āļø You can now set "defer loading" to true to keep your context clean until tools are actually needed. š The update works seamlessly with prompt caching, making multi-turn conversations much smoother.