When to use MCP tools
Use an MCP server when the tools your agent needs already sit behind an MCP interface, or when you want to expose a set of tools to the agent through a single connection:- You already run an MCP server — reuse the same tools your other AI agents and IDE assistants call, without rebuilding them as custom functions.
- You want many tools from one integration — connect once, then pick which of the server’s tools the agent can access, instead of configuring each endpoint separately.
- You use a third-party MCP server — connect to a hosted MCP service (search, CRM, internal tooling) that already speaks the protocol.
Example: order lookup over MCP
A retail support team already runs an MCP server that exposeslookup_order and create_ticket tools to its internal assistants. You connect a Retell support agent to the same server and enable both tools. When a caller gives an order number, the agent calls lookup_order and reads back the status; if the caller reports a problem, it calls create_ticket — with no separate custom function for either action.
How it works
You attach the MCP server to the agent, and each tool you enable becomes a tool the agent can call whenever your prompt and the tool’s description tell it to — the same way custom functions and prebuilt functions work. Retell connects to the server over Streamable HTTP, lists the server’s tools, and calls a tool with arguments the LLM fills in from the conversation. The tool’s response is handed back to the agent, which can speak it, act on it, or save parts of it as dynamic variables.Connect an MCP server
Add the MCP server


Set request headers (optional)
Authorization: Bearer <token>. Click New key value pair for each header. Values can include dynamic variables, so you can pass a per-call token as {{api_key}}.Set query parameters (optional)
Save the server
Add a tool

Set response variables (optional)
user.name or data.items[0].id. This works only when the tool returns a JSON object.For example, from this response you could save the name and reference it later as {{user_name}}:Configure speech behavior
- Talk While Waiting (off by default) — the agent says a short line to fill the silence while the tool runs, like “Let me look that up for you.” Choose Prompt to have the LLM generate the line, or Static Sentence to speak a fixed message you write. Turn it on for user-facing lookups; leave it off for background tasks. You can also enable Play typing sound to play a subtle typing sound while the tool runs.
- Talk After Action Completed (on by default) — the agent responds again once the tool returns, so it can read back the result or call another tool. Turn it off only for fire-and-forget tasks, like silently uploading a result to your server.
Save the tool
Tell the agent when to call the tool
FAQ
What's the difference between an MCP tool and a custom function?
What's the difference between an MCP tool and a custom function?
Why isn't my agent calling the tool?
Why isn't my agent calling the tool?
lookup_order”), and make sure the tool is added under the server in the MCPs section — only the tools you add there are available to the agent.How do I send a value from the tool response back into the conversation?
How do I send a value from the tool response back into the conversation?
{{variable_name}}.What transport does Retell use to reach my MCP server?
What transport does Retell use to reach my MCP server?
Does Retell retry a failed tool call?
Does Retell retry a failed tool call?
Is there a limit on the tool response?
Is there a limit on the tool response?
Can I use MCP tools in a conversation flow agent instead?
Can I use MCP tools in a conversation flow agent instead?

