diff --git a/lib/mcp/prompt.rb b/lib/mcp/prompt.rb
index 7624ef5..2b77c6e 100644
--- a/lib/mcp/prompt.rb
+++ b/lib/mcp/prompt.rb
@@ -9,7 +9,7 @@ class << self
       attr_reader :description_value
       attr_reader :arguments_value
 
-      def template(args, server_context:)
+      def template(args, server_context: nil)
         raise NotImplementedError, "Subclasses must implement template"
       end
 
@@ -57,7 +57,7 @@ def define(name: nil, description: nil, arguments: [], &block)
           prompt_name name
           description description
           arguments arguments
-          define_singleton_method(:template) do |args, server_context:|
+          define_singleton_method(:template) do |args, server_context: nil|
             instance_exec(args, server_context:, &block)
           end
         end
diff --git a/lib/mcp/server.rb b/lib/mcp/server.rb
index 98c5ac1..7fc2480 100644
--- a/lib/mcp/server.rb
+++ b/lib/mcp/server.rb
@@ -243,13 +243,7 @@ def call_tool(request)
       end
 
       begin
-        call_params = tool_call_parameters(tool)
-
-        if call_params.include?(:server_context)
-          tool.call(**arguments.transform_keys(&:to_sym), server_context:).to_h
-        else
-          tool.call(**arguments.transform_keys(&:to_sym)).to_h
-        end
+        call_tool_with_args(tool, arguments)
       rescue => e
         raise RequestHandlerError.new("Internal error calling tool #{tool_name}", request, original_error: e)
       end
@@ -272,7 +266,7 @@ def get_prompt(request)
       prompt_args = request[:arguments]
       prompt.validate_arguments!(prompt_args)
 
-      prompt.template(prompt_args, server_context:).to_h
+      call_prompt_template_with_args(prompt, prompt_args)
     end
 
     def list_resources(request)
@@ -299,22 +293,29 @@ def index_resources_by_uri(resources)
       end
     end
 
-    def tool_call_parameters(tool)
-      method_def = tool_call_method_def(tool)
-      method_def.parameters.flatten
+    def accepts_server_context?(method_object)
+      parameters = method_object.parameters
+      accepts_server_context = parameters.any? { |_type, name| name == :server_context }
+      has_kwargs = parameters.any? { |type, _| type == :keyrest }
+
+      accepts_server_context || has_kwargs
     end
 
-    def tool_call_method_def(tool)
-      method = tool.method(:call)
+    def call_tool_with_args(tool, arguments)
+      args = arguments.transform_keys(&:to_sym)
 
-      if defined?(T::Utils) && T::Utils.respond_to?(:signature_for_method)
-        sorbet_typed_method_definition = T::Utils.signature_for_method(method)&.method
+      if accepts_server_context?(tool.method(:call))
+        tool.call(**args, server_context: server_context).to_h
+      else
+        tool.call(**args).to_h
+      end
+    end
 
-        # Return the Sorbet typed method definition if it exists, otherwise fallback to original method
-        # definition if Sorbet is defined but not used by this tool.
-        sorbet_typed_method_definition || method
+    def call_prompt_template_with_args(prompt, args)
+      if accepts_server_context?(prompt.method(:template))
+        prompt.template(args, server_context: server_context).to_h
       else
-        method
+        prompt.template(args).to_h
       end
     end
   end
diff --git a/lib/mcp/tool.rb b/lib/mcp/tool.rb
index 48378e4..441c048 100644
--- a/lib/mcp/tool.rb
+++ b/lib/mcp/tool.rb
@@ -9,7 +9,7 @@ class << self
       attr_reader :input_schema_value
       attr_reader :annotations_value
 
-      def call(*args, server_context:)
+      def call(*args, server_context: nil)
         raise NotImplementedError, "Subclasses must implement call"
       end
 
diff --git a/test/mcp/server_context_test.rb b/test/mcp/server_context_test.rb
new file mode 100644
index 0000000..03ad3e6
--- /dev/null
+++ b/test/mcp/server_context_test.rb
@@ -0,0 +1,417 @@
+# frozen_string_literal: true
+
+require "test_helper"
+
+module MCP
+  class ServerContextTest < ActiveSupport::TestCase
+    # Tool without server_context parameter
+    class SimpleToolWithoutContext < Tool
+      tool_name "simple_without_context"
+      description "A tool that doesn't use server_context"
+      input_schema({ properties: { message: { type: "string" } }, required: ["message"] })
+
+      class << self
+        def call(message:)
+          Tool::Response.new([
+            { type: "text", content: "SimpleToolWithoutContext: #{message}" },
+          ])
+        end
+      end
+    end
+
+    # Tool with optional server_context parameter
+    class ToolWithOptionalContext < Tool
+      tool_name "tool_with_optional_context"
+      description "A tool with optional server_context"
+      input_schema({ properties: { message: { type: "string" } }, required: ["message"] })
+
+      class << self
+        def call(message:, server_context: nil)
+          context_info = server_context ? "with context: #{server_context[:user]}" : "no context"
+          Tool::Response.new([
+            { type: "text", content: "ToolWithOptionalContext: #{message} (#{context_info})" },
+          ])
+        end
+      end
+    end
+
+    # Tool with required server_context parameter
+    class ToolWithRequiredContext < Tool
+      tool_name "tool_with_required_context"
+      description "A tool that requires server_context"
+      input_schema({ properties: { message: { type: "string" } }, required: ["message"] })
+
+      class << self
+        def call(message:, server_context:)
+          Tool::Response.new([
+            { type: "text", content: "ToolWithRequiredContext: #{message} for user #{server_context[:user]}" },
+          ])
+        end
+      end
+    end
+
+    setup do
+      @server_with_context = Server.new(
+        name: "test_server",
+        tools: [SimpleToolWithoutContext, ToolWithOptionalContext, ToolWithRequiredContext],
+        server_context: { user: "test_user" },
+      )
+
+      @server_without_context = Server.new(
+        name: "test_server_no_context",
+        tools: [SimpleToolWithoutContext, ToolWithOptionalContext],
+      )
+    end
+
+    test "tool without server_context parameter works when server has context" do
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: {
+          name: "simple_without_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = @server_with_context.handle(request)
+
+      assert response[:result]
+      assert_equal "SimpleToolWithoutContext: Hello", response[:result][:content][0][:content]
+    end
+
+    test "tool with optional server_context receives context when server has it" do
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: {
+          name: "tool_with_optional_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = @server_with_context.handle(request)
+
+      assert response[:result]
+      assert_equal "ToolWithOptionalContext: Hello (with context: test_user)",
+        response[:result][:content][0][:content]
+    end
+
+    test "tool with optional server_context works when server has no context" do
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: {
+          name: "tool_with_optional_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = @server_without_context.handle(request)
+
+      assert response[:result]
+      assert_equal "ToolWithOptionalContext: Hello (no context)",
+        response[:result][:content][0][:content]
+    end
+
+    test "tool with required server_context receives context" do
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: {
+          name: "tool_with_required_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = @server_with_context.handle(request)
+
+      assert response[:result]
+      assert_equal "ToolWithRequiredContext: Hello for user test_user",
+        response[:result][:content][0][:content]
+    end
+
+    test "tool with required server_context fails when server has no context" do
+      server_no_context = Server.new(
+        name: "test_server_no_context",
+        tools: [ToolWithRequiredContext],
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: {
+          name: "tool_with_required_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server_no_context.handle(request)
+
+      assert response[:error]
+      # The error is wrapped as "Internal error calling tool..."
+      assert_equal "Internal error", response[:error][:message]
+    end
+
+    test "call_tool_with_args correctly detects server_context parameter presence" do
+      # Tool without server_context
+      refute SimpleToolWithoutContext.method(:call).parameters.any? { |_type, name| name == :server_context }
+
+      # Tool with optional server_context
+      assert ToolWithOptionalContext.method(:call).parameters.any? { |_type, name| name == :server_context }
+
+      # Tool with required server_context
+      assert ToolWithRequiredContext.method(:call).parameters.any? { |_type, name| name == :server_context }
+    end
+
+    test "tools can use splat kwargs to accept any arguments including server_context" do
+      class FlexibleTool < Tool
+        tool_name "flexible_tool"
+
+        class << self
+          def call(**kwargs)
+            message = kwargs[:message]
+            context = kwargs[:server_context]
+
+            Tool::Response.new([
+              {
+                type: "text",
+                content: "FlexibleTool: #{message} (context: #{context ? "present" : "absent"})",
+              },
+            ])
+          end
+        end
+      end
+
+      server = Server.new(
+        name: "test_server",
+        tools: [FlexibleTool],
+        server_context: { user: "test_user" },
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: {
+          name: "flexible_tool",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server.handle(request)
+
+      assert response[:result]
+      assert_equal "FlexibleTool: Hello (context: present)",
+        response[:result][:content][0][:content]
+    end
+
+    # Prompt tests
+
+    # Prompt without server_context parameter
+    class SimplePromptWithoutContext < Prompt
+      prompt_name "simple_prompt_without_context"
+      description "A prompt that doesn't use server_context"
+      arguments [Prompt::Argument.new(name: "message", required: true)]
+
+      class << self
+        def template(args)
+          Prompt::Result.new(
+            messages: [
+              Prompt::Message.new(
+                role: "user",
+                content: Content::Text.new("SimplePromptWithoutContext: #{args[:message]}"),
+              ),
+            ],
+          )
+        end
+      end
+    end
+
+    # Prompt with optional server_context parameter
+    class PromptWithOptionalContext < Prompt
+      prompt_name "prompt_with_optional_context"
+      description "A prompt with optional server_context"
+      arguments [Prompt::Argument.new(name: "message", required: true)]
+
+      class << self
+        def template(args, server_context: nil)
+          context_info = server_context ? "with context: #{server_context[:user]}" : "no context"
+          Prompt::Result.new(
+            messages: [
+              Prompt::Message.new(
+                role: "user",
+                content: Content::Text.new("PromptWithOptionalContext: #{args[:message]} (#{context_info})"),
+              ),
+            ],
+          )
+        end
+      end
+    end
+
+    # Prompt with required server_context parameter
+    class PromptWithRequiredContext < Prompt
+      prompt_name "prompt_with_required_context"
+      description "A prompt that requires server_context"
+      arguments [Prompt::Argument.new(name: "message", required: true)]
+
+      class << self
+        def template(args, server_context:)
+          Prompt::Result.new(
+            messages: [
+              Prompt::Message.new(
+                role: "user",
+                content: Content::Text.new(
+                  "PromptWithRequiredContext: #{args[:message]} for user #{server_context[:user]}",
+                ),
+              ),
+            ],
+          )
+        end
+      end
+    end
+
+    test "prompt without server_context parameter works when server has context" do
+      server = Server.new(
+        name: "test_server",
+        prompts: [SimplePromptWithoutContext],
+        server_context: { user: "test_user" },
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "prompts/get",
+        params: {
+          name: "simple_prompt_without_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server.handle(request)
+
+      assert response[:result]
+      assert_equal "SimplePromptWithoutContext: Hello", response[:result][:messages][0][:content][:text]
+    end
+
+    test "prompt with optional server_context receives context when server has it" do
+      server = Server.new(
+        name: "test_server",
+        prompts: [PromptWithOptionalContext],
+        server_context: { user: "test_user" },
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "prompts/get",
+        params: {
+          name: "prompt_with_optional_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server.handle(request)
+
+      assert response[:result]
+      assert_equal "PromptWithOptionalContext: Hello (with context: test_user)",
+        response[:result][:messages][0][:content][:text]
+    end
+
+    test "prompt with optional server_context works when server has no context" do
+      server = Server.new(
+        name: "test_server",
+        prompts: [PromptWithOptionalContext],
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "prompts/get",
+        params: {
+          name: "prompt_with_optional_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server.handle(request)
+
+      assert response[:result]
+      assert_equal "PromptWithOptionalContext: Hello (no context)",
+        response[:result][:messages][0][:content][:text]
+    end
+
+    test "prompt with required server_context receives context" do
+      server = Server.new(
+        name: "test_server",
+        prompts: [PromptWithRequiredContext],
+        server_context: { user: "test_user" },
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "prompts/get",
+        params: {
+          name: "prompt_with_required_context",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server.handle(request)
+
+      assert response[:result]
+      assert_equal "PromptWithRequiredContext: Hello for user test_user",
+        response[:result][:messages][0][:content][:text]
+    end
+
+    test "prompts can use splat kwargs to accept any arguments including server_context" do
+      class FlexiblePrompt < Prompt
+        prompt_name "flexible_prompt"
+        arguments [Prompt::Argument.new(name: "message", required: true)]
+
+        class << self
+          def template(args, **kwargs)
+            message = args[:message]
+            context = kwargs[:server_context]
+
+            Prompt::Result.new(
+              messages: [
+                Prompt::Message.new(
+                  role: "user",
+                  content: Content::Text.new("FlexiblePrompt: #{message} (context: #{context ? "present" : "absent"})"),
+                ),
+              ],
+            )
+          end
+        end
+      end
+
+      server = Server.new(
+        name: "test_server",
+        prompts: [FlexiblePrompt],
+        server_context: { user: "test_user" },
+      )
+
+      request = {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "prompts/get",
+        params: {
+          name: "flexible_prompt",
+          arguments: { message: "Hello" },
+        },
+      }
+
+      response = server.handle(request)
+
+      assert response[:result]
+      assert_equal "FlexiblePrompt: Hello (context: present)",
+        response[:result][:messages][0][:content][:text]
+    end
+  end
+end
diff --git a/test/mcp/server_test.rb b/test/mcp/server_test.rb
index 267f4ca..5ab454d 100644
--- a/test/mcp/server_test.rb
+++ b/test/mcp/server_test.rb
@@ -193,7 +193,7 @@ class ServerTest < ActiveSupport::TestCase
       tool_args = { arg: "value" }
       tool_response = Tool::Response.new([{ result: "success" }])
 
-      @tool.expects(:call).with(arg: "value").returns(tool_response)
+      @tool.expects(:call).with(arg: "value", server_context: nil).returns(tool_response)
 
       request = {
         jsonrpc: "2.0",
@@ -242,7 +242,7 @@ class ServerTest < ActiveSupport::TestCase
       tool_args = { arg: "value" }
       tool_response = Tool::Response.new([{ result: "success" }])
 
-      @tool.expects(:call).with(arg: "value").returns(tool_response)
+      @tool.expects(:call).with(arg: "value", server_context: nil).returns(tool_response)
 
       request = JSON.generate({
         jsonrpc: "2.0",
diff --git a/test/mcp/tool_test.rb b/test/mcp/tool_test.rb
index e87c826..1f9d056 100644
--- a/test/mcp/tool_test.rb
+++ b/test/mcp/tool_test.rb
@@ -244,6 +244,41 @@ def call(message:, server_context: nil)
       assert_equal response.is_error, false
     end
 
+    class TestToolWithoutServerContext < Tool
+      tool_name "test_tool_without_server_context"
+      description "a test tool for testing without server context"
+      input_schema({ properties: { message: { type: "string" } }, required: ["message"] })
+
+      class << self
+        def call(message:)
+          Tool::Response.new([{ type: "text", content: "OK" }])
+        end
+      end
+    end
+
+    class TestToolWithoutRequired < Tool
+      tool_name "test_tool_without_required"
+      description "a test tool for testing without required server context"
+
+      class << self
+        def call(message, server_context: nil)
+          Tool::Response.new([{ type: "text", content: "OK" }])
+        end
+      end
+    end
+
+    test "tool call without server context" do
+      tool = TestToolWithoutServerContext
+      response = tool.call(message: "test")
+      assert_equal response.content, [{ type: "text", content: "OK" }]
+    end
+
+    test "tool call with server context and without required" do
+      tool = TestToolWithoutRequired
+      response = tool.call("test", server_context: { foo: "bar" })
+      assert_equal response.content, [{ type: "text", content: "OK" }]
+    end
+
     test "input_schema rejects any $ref in schema" do
       schema_with_ref = {
         properties: {