diff --git a/.changeset/two-bats-smoke.md b/.changeset/two-bats-smoke.md
index da0ae1b6..79ce7ab2 100644
--- a/.changeset/two-bats-smoke.md
+++ b/.changeset/two-bats-smoke.md
@@ -10,8 +10,8 @@
 
 - **Refactor project root handling for MCP Server:**
   - **Prioritize Session Roots**: MCP tools now extract the project root path directly from `session.roots[0].uri` provided by the client (e.g., Cursor).
-  - **New Utility `getProjectRootFromSession`**: Added to `mcp-server/src/tools/utils.js` to encapsulate session root extraction and decoding.
-  - **Simplify `findTasksJsonPath`**: The core path finding utility in `mcp-server/src/core/utils/path-utils.js` now prioritizes the `projectRoot` passed in `args` (originating from the session). Removed checks for `TASK_MASTER_PROJECT_ROOT` env var and package directory fallback.
+  - **New Utility `getProjectRootFromSession`**: Added to `mcp-server/src/tools/utils.js` to encapsulate session root extraction and decoding. **Further refined for more reliable detection, especially in integrated environments, including deriving root from script path and avoiding fallback to '/'.**
+  - **Simplify `findTasksJsonPath`**: The core path finding utility in `mcp-server/src/core/utils/path-utils.js` now prioritizes the `projectRoot` passed in `args` (originating from the session). Removed checks for `TASK_MASTER_PROJECT_ROOT` env var (we do not use this anymore) and package directory fallback. **Enhanced error handling to include detailed debug information (paths searched, CWD, server dir, etc.) and clearer potential solutions when `tasks.json` is not found.**
   - **Retain CLI Fallbacks**: Kept `lastFoundProjectRoot` cache check and CWD search in `findTasksJsonPath` for compatibility with direct CLI usage.
 
 - Updated all MCP tools to use the new project root handling:
@@ -22,7 +22,10 @@
 
 - Add comprehensive PROJECT_MARKERS array for detecting common project files (used in CLI fallback logic).
 - Improved error messages with specific troubleshooting guidance.
-- Enhanced logging to indicate the source of project root selection.
+- **Enhanced logging:**
+    - Indicate the source of project root selection more clearly.
+    - **Add verbose logging in `get-task.js` to trace session object content and resolved project root path, aiding debugging.**
+
 - DRY refactoring by centralizing path utilities in `core/utils/path-utils.js` and session handling in `tools/utils.js`.
 - Keep caching of `lastFoundProjectRoot` for CLI performance.
 
@@ -59,6 +62,7 @@
   - Update tool descriptions to better reflect their actual behavior and capabilities.
   - Add cross-references between related tools and commands.
   - Include troubleshooting guidance in tool descriptions.
+  - **Add default values for `DEFAULT_SUBTASKS` and `DEFAULT_PRIORITY` to the example `.cursor/mcp.json` configuration.**
 
 - Document MCP server naming conventions in architecture.mdc and mcp.mdc files (file names use kebab-case, direct functions use camelCase with Direct suffix, tool registration functions use camelCase with Tool suffix, and MCP tool names use snake_case).
 - Update MCP tool naming to follow more intuitive conventions that better align with natural language requests in client chat applications.
diff --git a/.cursor/mcp.json b/.cursor/mcp.json
index 6b838029..6dd8186d 100644
--- a/.cursor/mcp.json
+++ b/.cursor/mcp.json
@@ -4,7 +4,17 @@
             "command": "node",
             "args": [
                 "./mcp-server/server.js"
-            ]
+            ],
+            "env": {
+                "ANTHROPIC_API_KEY": "%ANTHROPIC_API_KEY%",
+                "PERPLEXITY_API_KEY": "%PERPLEXITY_API_KEY%",
+                "MODEL": "%MODEL%",
+                "PERPLEXITY_MODEL": "%PERPLEXITY_MODEL%",
+                "MAX_TOKENS": "%MAX_TOKENS%",
+                "TEMPERATURE": "%TEMPERATURE%",
+                "DEFAULT_SUBTASKS": 5,
+                "DEFAULT_PRIORITY": "medium"
+            }
         }
     }
 }
\ No newline at end of file
diff --git a/mcp-server/src/core/utils/path-utils.js b/mcp-server/src/core/utils/path-utils.js
index 4114a3aa..9cfc39c2 100644
--- a/mcp-server/src/core/utils/path-utils.js
+++ b/mcp-server/src/core/utils/path-utils.js
@@ -91,8 +91,23 @@ export function findTasksJsonPath(args, log) {
   if (args.projectRoot) {
     const projectRoot = args.projectRoot;
     log.info(`Using explicitly provided project root: ${projectRoot}`);
-    // This will throw if tasks.json isn't found within this root
-    return findTasksJsonInDirectory(projectRoot, args.file, log); 
+    try {
+      // This will throw if tasks.json isn't found within this root
+      return findTasksJsonInDirectory(projectRoot, args.file, log); 
+    } catch (error) {
+      // Include debug info in error
+      const debugInfo = {
+        projectRoot,
+        currentDir: process.cwd(),
+        serverDir: path.dirname(process.argv[1]),
+        possibleProjectRoot: path.resolve(path.dirname(process.argv[1]), '../..'),
+        lastFoundProjectRoot,
+        searchedPaths: error.message
+      };
+      
+      error.message = `Tasks file not found in any of the expected locations relative to project root "${projectRoot}" (from session).\nDebug Info: ${JSON.stringify(debugInfo, null, 2)}`;
+      throw error;
+    }
   }
   
   // --- Fallback logic primarily for CLI or when projectRoot isn't passed --- 
@@ -120,7 +135,7 @@ export function findTasksJsonPath(args, log) {
     return findTasksJsonWithParentSearch(startDir, args.file, log); 
   } catch (error) {
     // If all attempts fail, augment and throw the original error from CWD search
-    error.message = `${error.message}\n\nPossible solutions:\n1. Run the command from your project directory containing tasks.json\n2. Use --project-root=/path/to/project to specify the project location (if using CLI)\n3. Ensure the project root is correctly passed from the client (if using MCP)`;
+    error.message = `${error.message}\n\nPossible solutions:\n1. Run the command from your project directory containing tasks.json\n2. Use --project-root=/path/to/project to specify the project location (if using CLI)\n3. Ensure the project root is correctly passed from the client (if using MCP)\n\nCurrent working directory: ${startDir}\nLast known project root: ${lastFoundProjectRoot}\nProject root from args: ${args.projectRoot}`;
     throw error;
   }
 }
diff --git a/mcp-server/src/tools/add-dependency.js b/mcp-server/src/tools/add-dependency.js
index 05b9bdba..75f62d6b 100644
--- a/mcp-server/src/tools/add-dependency.js
+++ b/mcp-server/src/tools/add-dependency.js
@@ -43,7 +43,7 @@ export function registerAddDependencyTool(server) {
         const result = await addDependencyDirect({
           projectRoot: rootFolder,
           ...args
-        }, log);
+        }, log, { reportProgress, mcpLog: log, session});
 
         reportProgress({ progress: 100 });
         
diff --git a/mcp-server/src/tools/add-subtask.js b/mcp-server/src/tools/add-subtask.js
index b3abc761..e4855076 100644
--- a/mcp-server/src/tools/add-subtask.js
+++ b/mcp-server/src/tools/add-subtask.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { addSubtaskDirect } from "../core/task-master-core.js";
 
@@ -30,21 +31,28 @@ export function registerAddSubtaskTool(server) {
       skipGenerate: z.boolean().optional().describe("Skip regenerating task files"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Adding subtask with args: ${JSON.stringify(args)}`);
         
-        // Call the direct function wrapper
-        const result = await addSubtaskDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await addSubtaskDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
         
-        // Log result
         if (result.success) {
           log.info(`Subtask added successfully: ${result.data.message}`);
         } else {
           log.error(`Failed to add subtask: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error adding subtask');
       } catch (error) {
         log.error(`Error in addSubtask tool: ${error.message}`);
diff --git a/mcp-server/src/tools/add-task.js b/mcp-server/src/tools/add-task.js
index 43b55c06..7639e42f 100644
--- a/mcp-server/src/tools/add-task.js
+++ b/mcp-server/src/tools/add-task.js
@@ -43,7 +43,7 @@ export function registerAddTaskTool(server) {
         const result = await addTaskDirect({
           projectRoot: rootFolder, // Pass the resolved root
           ...args
-        }, log);
+        }, log, { reportProgress, mcpLog: log, session});
         
         return handleApiResult(result, log);
       } catch (error) {
diff --git a/mcp-server/src/tools/analyze.js b/mcp-server/src/tools/analyze.js
index 2fc35581..eaee89eb 100644
--- a/mcp-server/src/tools/analyze.js
+++ b/mcp-server/src/tools/analyze.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { analyzeTaskComplexityDirect } from "../core/task-master-core.js";
 
@@ -26,14 +27,25 @@ export function registerAnalyzeTool(server) {
       research: z.boolean().optional().describe("Use Perplexity AI for research-backed complexity analysis"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Analyzing task complexity with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await analyzeTaskComplexityDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await analyzeTaskComplexityDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Task complexity analysis complete: ${result.data.message}`);
           log.info(`Report summary: ${JSON.stringify(result.data.reportSummary)}`);
@@ -41,7 +53,6 @@ export function registerAnalyzeTool(server) {
           log.error(`Failed to analyze task complexity: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error analyzing task complexity');
       } catch (error) {
         log.error(`Error in analyze tool: ${error.message}`);
diff --git a/mcp-server/src/tools/clear-subtasks.js b/mcp-server/src/tools/clear-subtasks.js
index 60f52c2b..cf1a32ea 100644
--- a/mcp-server/src/tools/clear-subtasks.js
+++ b/mcp-server/src/tools/clear-subtasks.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { clearSubtasksDirect } from "../core/task-master-core.js";
 
@@ -27,21 +28,31 @@ export function registerClearSubtasksTool(server) {
       message: "Either 'id' or 'all' parameter must be provided",
       path: ["id", "all"]
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Clearing subtasks with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await clearSubtasksDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await clearSubtasksDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Subtasks cleared successfully: ${result.data.message}`);
         } else {
           log.error(`Failed to clear subtasks: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error clearing subtasks');
       } catch (error) {
         log.error(`Error in clearSubtasks tool: ${error.message}`);
diff --git a/mcp-server/src/tools/complexity-report.js b/mcp-server/src/tools/complexity-report.js
index 415ad713..0c07349e 100644
--- a/mcp-server/src/tools/complexity-report.js
+++ b/mcp-server/src/tools/complexity-report.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { complexityReportDirect } from "../core/task-master-core.js";
 
@@ -22,21 +23,31 @@ export function registerComplexityReportTool(server) {
       file: z.string().optional().describe("Path to the report file (default: scripts/task-complexity-report.json)"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Getting complexity report with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await complexityReportDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await complexityReportDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Successfully retrieved complexity report${result.fromCache ? ' (from cache)' : ''}`);
         } else {
           log.error(`Failed to retrieve complexity report: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error retrieving complexity report');
       } catch (error) {
         log.error(`Error in complexity-report tool: ${error.message}`);
diff --git a/mcp-server/src/tools/expand-all.js b/mcp-server/src/tools/expand-all.js
index ddd6fbff..8465f8c7 100644
--- a/mcp-server/src/tools/expand-all.js
+++ b/mcp-server/src/tools/expand-all.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { expandAllTasksDirect } from "../core/task-master-core.js";
 
@@ -26,21 +27,31 @@ export function registerExpandAllTool(server) {
       file: z.string().optional().describe("Path to the tasks file (default: tasks/tasks.json)"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Expanding all tasks with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await expandAllTasksDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await expandAllTasksDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`All tasks expanded successfully: ${result.data.message}`);
         } else {
           log.error(`Failed to expand tasks: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error expanding tasks');
       } catch (error) {
         log.error(`Error in expandAll tool: ${error.message}`);
diff --git a/mcp-server/src/tools/expand-task.js b/mcp-server/src/tools/expand-task.js
index ecef0eee..97ba11e7 100644
--- a/mcp-server/src/tools/expand-task.js
+++ b/mcp-server/src/tools/expand-task.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { expandTaskDirect } from "../core/task-master-core.js";
 
@@ -27,25 +28,36 @@ export function registerExpandTaskTool(server) {
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z
         .string()
+        .optional()
         .describe(
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Expanding task with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await expandTaskDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await expandTaskDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Successfully expanded task ID: ${args.id} with ${result.data.subtasksAdded} new subtasks${result.data.hasExistingSubtasks ? ' (appended to existing subtasks)' : ''}`);
         } else {
           log.error(`Failed to expand task: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error expanding task');
       } catch (error) {
         log.error(`Error in expand-task tool: ${error.message}`);
diff --git a/mcp-server/src/tools/fix-dependencies.js b/mcp-server/src/tools/fix-dependencies.js
index 70340c67..0d999940 100644
--- a/mcp-server/src/tools/fix-dependencies.js
+++ b/mcp-server/src/tools/fix-dependencies.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { fixDependenciesDirect } from "../core/task-master-core.js";
 
@@ -22,21 +23,31 @@ export function registerFixDependenciesTool(server) {
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Fixing dependencies with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await fixDependenciesDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await fixDependenciesDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Successfully fixed dependencies: ${result.data.message}`);
         } else {
           log.error(`Failed to fix dependencies: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error fixing dependencies');
       } catch (error) {
         log.error(`Error in fixDependencies tool: ${error.message}`);
diff --git a/mcp-server/src/tools/generate.js b/mcp-server/src/tools/generate.js
index e42f4ef4..510966e9 100644
--- a/mcp-server/src/tools/generate.js
+++ b/mcp-server/src/tools/generate.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { generateTaskFilesDirect } from "../core/task-master-core.js";
 
@@ -23,21 +24,36 @@ export function registerGenerateTool(server) {
       output: z.string().optional().describe("Output directory (default: same directory as tasks file)"),
       projectRoot: z
         .string()
+        .optional()
         .describe(
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Generating task files with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await generateTaskFilesDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result
-        log.info(`${result.success ? 'Successfully generated task files' : 'Failed to generate task files'}`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await generateTaskFilesDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
+        
+        if (result.success) {
+          log.info(`Successfully generated task files: ${result.data.message}`);
+        } else {
+          log.error(`Failed to generate task files: ${result.error.message}`);
+        }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error generating task files');
       } catch (error) {
         log.error(`Error in generate tool: ${error.message}`);
diff --git a/mcp-server/src/tools/get-task.js b/mcp-server/src/tools/get-task.js
index b619f002..b007be4b 100644
--- a/mcp-server/src/tools/get-task.js
+++ b/mcp-server/src/tools/get-task.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { showTaskDirect } from "../core/task-master-core.js";
 
@@ -28,24 +29,43 @@ export function registerShowTaskTool(server) {
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
+      // Log the session right at the start of execute
+      log.info(`Session object received in execute: ${JSON.stringify(session)}`); // Use JSON.stringify for better visibility
+
       try {
         log.info(`Getting task details for ID: ${args.id}`);
+
+        log.info(`Session object received in execute: ${JSON.stringify(session)}`); // Use JSON.stringify for better visibility
         
-        // Call the direct function wrapper
-        const result = await showTaskDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        } else if (!rootFolder) {
+          // Ensure we always have *some* root, even if session failed and args didn't provide one
+          rootFolder = process.cwd();
+          log.warn(`Session and args failed to provide root, using CWD: ${rootFolder}`);
+        }
+
+        log.info(`Attempting to use project root: ${rootFolder}`); // Log the final resolved root
+
+        log.info(`Root folder: ${rootFolder}`); // Log the final resolved root
+        const result = await showTaskDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log);
         
-        // Log result
         if (result.success) {
           log.info(`Successfully retrieved task details for ID: ${args.id}${result.fromCache ? ' (from cache)' : ''}`);
         } else {
           log.error(`Failed to get task: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error retrieving task details');
       } catch (error) {
-        log.error(`Error in get-task tool: ${error.message}`);
+        log.error(`Error in get-task tool: ${error.message}\n${error.stack}`); // Add stack trace
         return createErrorResponse(`Failed to get task: ${error.message}`);
       }
     },
diff --git a/mcp-server/src/tools/get-tasks.js b/mcp-server/src/tools/get-tasks.js
index 52fd5dbe..4e494b44 100644
--- a/mcp-server/src/tools/get-tasks.js
+++ b/mcp-server/src/tools/get-tasks.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   createErrorResponse,
-  handleApiResult
+  handleApiResult,
+  getProjectRootFromSession
 } from "./utils.js";
 import { listTasksDirect } from "../core/task-master-core.js";
 
@@ -16,31 +17,42 @@ import { listTasksDirect } from "../core/task-master-core.js";
  */
 export function registerListTasksTool(server) {
   server.addTool({
-    name: "get-tasks",
-    description: "Get all tasks from Task Master",
+    name: "get_tasks",
+    description: "Get all tasks from Task Master, optionally filtering by status and including subtasks.",
     parameters: z.object({
-      status: z.string().optional().describe("Filter tasks by status"),
+      status: z.string().optional().describe("Filter tasks by status (e.g., 'pending', 'done')"),
       withSubtasks: z
         .boolean()
         .optional()
-        .describe("Include subtasks in the response"),
-      file: z.string().optional().describe("Path to the tasks file"),
+        .describe("Include subtasks nested within their parent tasks in the response"),
+      file: z.string().optional().describe("Path to the tasks file (relative to project root or absolute)"),
       projectRoot: z
         .string()
         .optional()
         .describe(
-          "Root directory of the project (default: automatically detected)"
+          "Root directory of the project (default: automatically detected from session or CWD)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Getting tasks with filters: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call core function - args contains projectRoot which is handled internally
-        const result = await listTasksDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result and use handleApiResult utility
-        log.info(`Retrieved ${result.success ? (result.data?.tasks?.length || 0) : 0} tasks`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await listTasksDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log);
+        
+        await reportProgress({ progress: 100 });
+        
+        log.info(`Retrieved ${result.success ? (result.data?.tasks?.length || 0) : 0} tasks${result.fromCache ? ' (from cache)' : ''}`);
         return handleApiResult(result, log, 'Error getting tasks');
       } catch (error) {
         log.error(`Error getting tasks: ${error.message}`);
diff --git a/mcp-server/src/tools/index.js b/mcp-server/src/tools/index.js
index 6c86de79..f04358a5 100644
--- a/mcp-server/src/tools/index.js
+++ b/mcp-server/src/tools/index.js
@@ -30,9 +30,7 @@ import { registerAddDependencyTool } from "./add-dependency.js";
  * Register all Task Master tools with the MCP server
  * @param {Object} server - FastMCP server instance
  */
-export function registerTaskMasterTools(server) {
-  logger.info("Registering Task Master tools with MCP server");
-  
+export function registerTaskMasterTools(server) {  
   try {
     // Register each tool
     registerListTasksTool(server);
@@ -56,8 +54,6 @@ export function registerTaskMasterTools(server) {
     registerFixDependenciesTool(server);
     registerComplexityReportTool(server);
     registerAddDependencyTool(server);
-    
-    logger.info("Successfully registered all Task Master tools");
   } catch (error) {
     logger.error(`Error registering Task Master tools: ${error.message}`);
     throw error;
diff --git a/mcp-server/src/tools/next-task.js b/mcp-server/src/tools/next-task.js
index c6b4b81d..10f1cd1b 100644
--- a/mcp-server/src/tools/next-task.js
+++ b/mcp-server/src/tools/next-task.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { nextTaskDirect } from "../core/task-master-core.js";
 
@@ -22,18 +23,30 @@ export function registerNextTaskTool(server) {
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z
         .string()
+        .optional()
         .describe(
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Finding next task with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await nextTaskDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await nextTaskDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           if (result.data.nextTask) {
             log.info(`Successfully found next task ID: ${result.data.nextTask.id}${result.fromCache ? ' (from cache)' : ''}`);
@@ -44,7 +57,6 @@ export function registerNextTaskTool(server) {
           log.error(`Failed to find next task: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error finding next task');
       } catch (error) {
         log.error(`Error in next-task tool: ${error.message}`);
diff --git a/mcp-server/src/tools/parse-prd.js b/mcp-server/src/tools/parse-prd.js
index 2846072c..76f2b501 100644
--- a/mcp-server/src/tools/parse-prd.js
+++ b/mcp-server/src/tools/parse-prd.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { parsePRDDirect } from "../core/task-master-core.js";
 
@@ -16,32 +17,47 @@ import { parsePRDDirect } from "../core/task-master-core.js";
  */
 export function registerParsePRDTool(server) {
   server.addTool({
-    name: "parse_prd_document",
-    description: "Parse PRD document and generate tasks",
+    name: "parse_prd",
+    description: "Parse a Product Requirements Document (PRD) or text file to automatically generate initial tasks.",
     parameters: z.object({
-      input: z.string().describe("Path to the PRD document file"),
-      numTasks: z.union([z.number(), z.string()]).optional().describe("Number of tasks to generate (default: 10)"),
-      output: z.string().optional().describe("Output path for tasks.json file (default: tasks/tasks.json)"),
+      input: z.string().default("tasks/tasks.json").describe("Path to the PRD document file (relative to project root or absolute)"),
+      numTasks: z.union([z.number(), z.string()]).optional().describe("Approximate number of top-level tasks to generate (default: 10)"),
+      output: z.string().optional().describe("Output path for tasks.json file (relative to project root or absolute, default: tasks/tasks.json)"),
+      force: z.boolean().optional().describe("Allow overwriting an existing tasks.json file."),
       projectRoot: z
         .string()
+        .optional()
         .describe(
-          "Root directory of the project (default: current working directory)"
+          "Root directory of the project (default: automatically detected from session or CWD)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Parsing PRD document with args: ${JSON.stringify(args)}`);
         
-        // Call the direct function wrapper
-        const result = await parsePRDDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result
-        log.info(`${result.success ? `Successfully generated ${result.data?.taskCount || 0} tasks` : 'Failed to parse PRD'}`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await parsePRDDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
+        
+        if (result.success) {
+          log.info(`Successfully generated ${result.data?.taskCount || 0} tasks from PRD at ${result.data?.outputPath}`);
+        } else {
+          log.error(`Failed to parse PRD: ${result.error?.message || 'Unknown error'}`);
+        }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error parsing PRD document');
       } catch (error) {
-        log.error(`Error in parsePRD tool: ${error.message}`);
+        log.error(`Error in parse_prd tool: ${error.message}`);
         return createErrorResponse(error.message);
       }
     },
diff --git a/mcp-server/src/tools/remove-dependency.js b/mcp-server/src/tools/remove-dependency.js
index 2cecf3d6..af182f5d 100644
--- a/mcp-server/src/tools/remove-dependency.js
+++ b/mcp-server/src/tools/remove-dependency.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { removeDependencyDirect } from "../core/task-master-core.js";
 
@@ -24,26 +25,36 @@ export function registerRemoveDependencyTool(server) {
       file: z.string().optional().describe("Path to the tasks file (default: tasks/tasks.json)"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Removing dependency for task ${args.id} from ${args.dependsOn} with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await removeDependencyDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await removeDependencyDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Successfully removed dependency: ${result.data.message}`);
         } else {
           log.error(`Failed to remove dependency: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error removing dependency');
       } catch (error) {
         log.error(`Error in removeDependency tool: ${error.message}`);
         return createErrorResponse(error.message);
       }
-    },
+    }
   });
-} 
\ No newline at end of file
+}
\ No newline at end of file
diff --git a/mcp-server/src/tools/remove-subtask.js b/mcp-server/src/tools/remove-subtask.js
index 786de1fe..2ec67a1d 100644
--- a/mcp-server/src/tools/remove-subtask.js
+++ b/mcp-server/src/tools/remove-subtask.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { removeSubtaskDirect } from "../core/task-master-core.js";
 
@@ -25,21 +26,31 @@ export function registerRemoveSubtaskTool(server) {
       skipGenerate: z.boolean().optional().describe("Skip regenerating task files"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Removing subtask with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await removeSubtaskDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await removeSubtaskDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Subtask removed successfully: ${result.data.message}`);
         } else {
           log.error(`Failed to remove subtask: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error removing subtask');
       } catch (error) {
         log.error(`Error in removeSubtask tool: ${error.message}`);
diff --git a/mcp-server/src/tools/set-task-status.js b/mcp-server/src/tools/set-task-status.js
index 536cef49..01982ce9 100644
--- a/mcp-server/src/tools/set-task-status.js
+++ b/mcp-server/src/tools/set-task-status.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { setTaskStatusDirect } from "../core/task-master-core.js";
 
@@ -17,14 +18,14 @@ import { setTaskStatusDirect } from "../core/task-master-core.js";
 export function registerSetTaskStatusTool(server) {
   server.addTool({
     name: "set_task_status",
-    description: "Set the status of a task",
+    description: "Set the status of one or more tasks or subtasks.",
     parameters: z.object({
       id: z
         .string()
-        .describe("Task ID (can be comma-separated for multiple tasks)"),
+        .describe("Task ID or subtask ID (e.g., '15', '15.2'). Can be comma-separated for multiple updates."),
       status: z
         .string()
-        .describe("New status (todo, in-progress, review, done)"),
+        .describe("New status to set (e.g., 'pending', 'done', 'in-progress', 'review', 'deferred', 'cancelled'."),
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z
         .string()
@@ -33,17 +34,31 @@ export function registerSetTaskStatusTool(server) {
           "Root directory of the project (default: automatically detected)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Setting status of task(s) ${args.id} to: ${args.status}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await setTaskStatusDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result
-        log.info(`${result.success ? `Successfully updated task ${args.id} status to "${args.status}"` : 'Failed to update task status'}`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await setTaskStatusDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
+        
+        if (result.success) {
+          log.info(`Successfully updated status for task(s) ${args.id} to "${args.status}": ${result.data.message}`);
+        } else {
+          log.error(`Failed to update task status: ${result.error?.message || 'Unknown error'}`);
+        }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error setting task status');
       } catch (error) {
         log.error(`Error in setTaskStatus tool: ${error.message}`);
diff --git a/mcp-server/src/tools/update-subtask.js b/mcp-server/src/tools/update-subtask.js
index 8c50ced8..e5ac37f3 100644
--- a/mcp-server/src/tools/update-subtask.js
+++ b/mcp-server/src/tools/update-subtask.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { updateSubtaskByIdDirect } from "../core/task-master-core.js";
 
@@ -16,7 +17,7 @@ import { updateSubtaskByIdDirect } from "../core/task-master-core.js";
  */
 export function registerUpdateSubtaskTool(server) {
   server.addTool({
-    name: "update-subtask",
+    name: "update_subtask",
     description: "Appends additional information to a specific subtask without replacing existing content",
     parameters: z.object({
       id: z.string().describe("ID of the subtask to update in format \"parentId.subtaskId\" (e.g., \"5.2\")"),
@@ -30,20 +31,34 @@ export function registerUpdateSubtaskTool(server) {
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Updating subtask with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await updateSubtaskByIdDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result
-        log.info(`${result.success ? `Successfully updated subtask with ID ${args.id}` : 'Failed to update subtask'}`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await updateSubtaskByIdDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
+        
+        if (result.success) {
+          log.info(`Successfully updated subtask with ID ${args.id}`);
+        } else {
+          log.error(`Failed to update subtask: ${result.error?.message || 'Unknown error'}`);
+        }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error updating subtask');
       } catch (error) {
-        log.error(`Error in update-subtask tool: ${error.message}`);
+        log.error(`Error in update_subtask tool: ${error.message}`);
         return createErrorResponse(error.message);
       }
     },
diff --git a/mcp-server/src/tools/update-task.js b/mcp-server/src/tools/update-task.js
index 8cdd6974..5ff88561 100644
--- a/mcp-server/src/tools/update-task.js
+++ b/mcp-server/src/tools/update-task.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { updateTaskByIdDirect } from "../core/task-master-core.js";
 
@@ -16,11 +17,11 @@ import { updateTaskByIdDirect } from "../core/task-master-core.js";
  */
 export function registerUpdateTaskTool(server) {
   server.addTool({
-    name: "update-task",
-    description: "Updates a single task by ID with new information",
+    name: "update_task",
+    description: "Updates a single task by ID with new information or context provided in the prompt.",
     parameters: z.object({
-      id: z.union([z.number(), z.string()]).describe("ID of the task to update"),
-      prompt: z.string().describe("New information or context to update the task"),
+      id: z.union([z.number(), z.string()]).describe("ID of the task or subtask (e.g., '15', '15.2') to update"),
+      prompt: z.string().describe("New information or context to incorporate into the task"),
       research: z.boolean().optional().describe("Use Perplexity AI for research-backed updates"),
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z
@@ -30,20 +31,34 @@ export function registerUpdateTaskTool(server) {
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Updating task with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await updateTaskByIdDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result
-        log.info(`${result.success ? `Successfully updated task with ID ${args.id}` : 'Failed to update task'}`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await updateTaskByIdDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
+        
+        if (result.success) {
+          log.info(`Successfully updated task with ID ${args.id}`);
+        } else {
+          log.error(`Failed to update task: ${result.error?.message || 'Unknown error'}`);
+        }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error updating task');
       } catch (error) {
-        log.error(`Error in update-task tool: ${error.message}`);
+        log.error(`Error in update_task tool: ${error.message}`);
         return createErrorResponse(error.message);
       }
     },
diff --git a/mcp-server/src/tools/update.js b/mcp-server/src/tools/update.js
index aee07f72..bb06394b 100644
--- a/mcp-server/src/tools/update.js
+++ b/mcp-server/src/tools/update.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { updateTasksDirect } from "../core/task-master-core.js";
 
@@ -17,10 +18,10 @@ import { updateTasksDirect } from "../core/task-master-core.js";
 export function registerUpdateTool(server) {
   server.addTool({
     name: "update",
-    description: "Update tasks with ID >= specified ID based on the provided prompt",
+    description: "Update multiple upcoming tasks (with ID >= 'from' ID) based on new context or changes provided in the prompt.",
     parameters: z.object({
-      from: z.union([z.number(), z.string()]).describe("Task ID from which to start updating"),
-      prompt: z.string().describe("Explanation of changes or new context"),
+      from: z.union([z.number(), z.string()]).describe("Task ID from which to start updating (inclusive)"),
+      prompt: z.string().describe("Explanation of changes or new context to apply"),
       research: z.boolean().optional().describe("Use Perplexity AI for research-backed updates"),
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z
@@ -30,17 +31,31 @@ export function registerUpdateTool(server) {
           "Root directory of the project (default: current working directory)"
         ),
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Updating tasks with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await updateTasksDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
         
-        // Log result
-        log.info(`${result.success ? `Successfully updated tasks from ID ${args.from}` : 'Failed to update tasks'}`);
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await updateTasksDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
+        
+        if (result.success) {
+          log.info(`Successfully updated tasks from ID ${args.from}: ${result.data.message}`);
+        } else {
+          log.error(`Failed to update tasks: ${result.error?.message || 'Unknown error'}`);
+        }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error updating tasks');
       } catch (error) {
         log.error(`Error in update tool: ${error.message}`);
diff --git a/mcp-server/src/tools/utils.js b/mcp-server/src/tools/utils.js
index fbfd4940..168b507e 100644
--- a/mcp-server/src/tools/utils.js
+++ b/mcp-server/src/tools/utils.js
@@ -5,12 +5,11 @@
 
 import { spawnSync } from "child_process";
 import path from "path";
-import { contextManager } from '../core/context-manager.js'; // Import the singleton
 import fs from 'fs';
-import { decodeURIComponent } from 'querystring'; // Added for URI decoding
+import { contextManager } from '../core/context-manager.js'; // Import the singleton
 
 // Import path utilities to ensure consistent path resolution
-import { lastFoundProjectRoot, getPackagePath, PROJECT_MARKERS } from '../core/utils/path-utils.js';
+import { lastFoundProjectRoot, PROJECT_MARKERS } from '../core/utils/path-utils.js';
 
 /**
  * Get normalized project root path 
@@ -18,7 +17,7 @@ import { lastFoundProjectRoot, getPackagePath, PROJECT_MARKERS } from '../core/u
  * @param {Object} log - Logger object
  * @returns {string} - Normalized absolute path to project root
  */
-export function getProjectRoot(projectRootRaw, log) {
+function getProjectRoot(projectRootRaw, log) {
   // PRECEDENCE ORDER:
   // 1. Environment variable override
   // 2. Explicitly provided projectRoot in args
@@ -74,28 +73,69 @@ export function getProjectRoot(projectRootRaw, log) {
  * @param {Object} log - Logger object.
  * @returns {string|null} - The absolute path to the project root, or null if not found.
  */
-export function getProjectRootFromSession(session, log) {
-  if (session && session.roots && session.roots.length > 0) {
-    const firstRoot = session.roots[0];
-    if (firstRoot && firstRoot.uri) {
-      try {
-        const rootUri = firstRoot.uri;
-        const rootPath = rootUri.startsWith('file://')
-          ? decodeURIComponent(rootUri.slice(7)) // Remove 'file://' and decode
-          : rootUri; // Assume it's a path if no scheme
-        log.info(`Extracted project root from session: ${rootPath}`);
-        return rootPath;
-      } catch (e) {
-        log.error(`Error decoding project root URI from session: ${firstRoot.uri}`, e);
-        return null;
-      }
-    } else {
-      log.info('Session exists, but first root or its URI is missing.');
+function getProjectRootFromSession(session, log) {
+  try {
+    // If we have a session with roots array
+    if (session?.roots?.[0]?.uri) {
+      const rootUri = session.roots[0].uri;
+      const rootPath = rootUri.startsWith('file://')
+        ? decodeURIComponent(rootUri.slice(7))
+        : rootUri;
+      return rootPath;
     }
-  } else {
-    log.info('No session or session roots found to extract project root.');
+    
+    // If we have a session with roots.roots array (different structure)
+    if (session?.roots?.roots?.[0]?.uri) {
+      const rootUri = session.roots.roots[0].uri;
+      const rootPath = rootUri.startsWith('file://')
+        ? decodeURIComponent(rootUri.slice(7))
+        : rootUri;
+      return rootPath;
+    }
+
+    // Get the server's location and try to find project root -- this is a fallback necessary in Cursor IDE
+    const serverPath = process.argv[1];  // This should be the path to server.js, which is in mcp-server/
+    if (serverPath && serverPath.includes('mcp-server')) {
+      // Find the mcp-server directory first
+      const mcpServerIndex = serverPath.indexOf('mcp-server');
+      if (mcpServerIndex !== -1) {
+        // Get the path up to mcp-server, which should be the project root
+        const projectRoot = serverPath.substring(0, mcpServerIndex - 1); // -1 to remove trailing slash
+        
+        // Verify this looks like our project root by checking for key files/directories
+        if (fs.existsSync(path.join(projectRoot, '.cursor')) || 
+            fs.existsSync(path.join(projectRoot, 'mcp-server')) ||
+            fs.existsSync(path.join(projectRoot, 'package.json'))) {
+          return projectRoot;
+        }
+      }
+    }
+
+    // If we get here, we'll try process.cwd() but only if it's not "/"
+    const cwd = process.cwd();
+    if (cwd !== '/') {
+      return cwd;
+    }
+
+    // Last resort: try to derive from the server path we found earlier
+    if (serverPath) {
+      const mcpServerIndex = serverPath.indexOf('mcp-server');
+      return mcpServerIndex !== -1 ? serverPath.substring(0, mcpServerIndex - 1) : cwd;
+    }
+
+    throw new Error('Could not determine project root');
+  } catch (e) {
+    // If we have a server path, use it as a basis for project root
+    const serverPath = process.argv[1];
+    if (serverPath && serverPath.includes('mcp-server')) {
+      const mcpServerIndex = serverPath.indexOf('mcp-server');
+      return mcpServerIndex !== -1 ? serverPath.substring(0, mcpServerIndex - 1) : process.cwd();
+    }
+    
+    // Only use cwd if it's not "/"
+    const cwd = process.cwd();
+    return cwd !== '/' ? cwd : '/';
   }
-  return null;
 }
 
 /**
@@ -106,7 +146,7 @@ export function getProjectRootFromSession(session, log) {
  * @param {Function} processFunction - Optional function to process successful result data
  * @returns {Object} - Standardized MCP response object
  */
-export function handleApiResult(result, log, errorPrefix = 'API error', processFunction = processMCPResponseData) {
+function handleApiResult(result, log, errorPrefix = 'API error', processFunction = processMCPResponseData) {
   if (!result.success) {
     const errorMsg = result.error?.message || `Unknown ${errorPrefix}`;
     // Include cache status in error logs
@@ -138,7 +178,7 @@ export function handleApiResult(result, log, errorPrefix = 'API error', processF
  * @param {string|undefined} projectRootRaw - Optional raw project root path (will be normalized internally)
  * @returns {Object} - The result of the command execution
  */
-export function executeTaskMasterCommand(
+function executeTaskMasterCommand(
   command,
   log,
   args = [],
@@ -215,7 +255,7 @@ export function executeTaskMasterCommand(
  * @returns {Promise<Object>} - An object containing the result, indicating if it was from cache.
  *                              Format: { success: boolean, data?: any, error?: { code: string, message: string }, fromCache: boolean }
  */
-export async function getCachedOrExecute({ cacheKey, actionFn, log }) {
+async function getCachedOrExecute({ cacheKey, actionFn, log }) {
   // Check cache first
   const cachedResult = contextManager.getCachedData(cacheKey);
   
@@ -259,7 +299,7 @@ export async function getCachedOrExecute({ cacheKey, actionFn, log }) {
  * @param {string[]} fieldsToRemove - An array of field names to remove.
  * @returns {Object|Array} - The processed data with specified fields removed.
  */
-export function processMCPResponseData(taskOrData, fieldsToRemove = ['details', 'testStrategy']) {
+function processMCPResponseData(taskOrData, fieldsToRemove = ['details', 'testStrategy']) {
   if (!taskOrData) {
     return taskOrData;
   }
@@ -316,7 +356,7 @@ export function processMCPResponseData(taskOrData, fieldsToRemove = ['details',
  * @param {string|Object} content - Content to include in response
  * @returns {Object} - Content response object in FastMCP format
  */
-export function createContentResponse(content) {
+function createContentResponse(content) {
   // FastMCP requires text type, so we format objects as JSON strings
   return {
     content: [
@@ -351,10 +391,11 @@ export function createErrorResponse(errorMessage) {
 
 // Ensure all functions are exported
 export {
+  getProjectRoot,
+  getProjectRootFromSession,
   handleApiResult,
   executeTaskMasterCommand,
   getCachedOrExecute,
   processMCPResponseData,
   createContentResponse,
-  createErrorResponse
 };
diff --git a/mcp-server/src/tools/validate-dependencies.js b/mcp-server/src/tools/validate-dependencies.js
index 2b4460c0..e24f0feb 100644
--- a/mcp-server/src/tools/validate-dependencies.js
+++ b/mcp-server/src/tools/validate-dependencies.js
@@ -6,7 +6,8 @@
 import { z } from "zod";
 import {
   handleApiResult,
-  createErrorResponse
+  createErrorResponse,
+  getProjectRootFromSession
 } from "./utils.js";
 import { validateDependenciesDirect } from "../core/task-master-core.js";
 
@@ -17,26 +18,36 @@ import { validateDependenciesDirect } from "../core/task-master-core.js";
 export function registerValidateDependenciesTool(server) {
   server.addTool({
     name: "validate_dependencies",
-    description: "Identify invalid dependencies in tasks without fixing them",
+    description: "Check tasks for dependency issues (like circular references or links to non-existent tasks) without making changes.",
     parameters: z.object({
       file: z.string().optional().describe("Path to the tasks file"),
       projectRoot: z.string().optional().describe("Root directory of the project (default: current working directory)")
     }),
-    execute: async (args, { log }) => {
+    execute: async (args, { log, session, reportProgress }) => {
       try {
         log.info(`Validating dependencies with args: ${JSON.stringify(args)}`);
+        await reportProgress({ progress: 0 });
         
-        // Call the direct function wrapper
-        const result = await validateDependenciesDirect(args, log);
+        let rootFolder = getProjectRootFromSession(session, log);
+        
+        if (!rootFolder && args.projectRoot) {
+          rootFolder = args.projectRoot;
+          log.info(`Using project root from args as fallback: ${rootFolder}`);
+        }
+        
+        const result = await validateDependenciesDirect({
+          projectRoot: rootFolder,
+          ...args
+        }, log, { reportProgress, mcpLog: log, session});
+        
+        await reportProgress({ progress: 100 });
         
-        // Log result
         if (result.success) {
           log.info(`Successfully validated dependencies: ${result.data.message}`);
         } else {
           log.error(`Failed to validate dependencies: ${result.error.message}`);
         }
         
-        // Use handleApiResult to format the response
         return handleApiResult(result, log, 'Error validating dependencies');
       } catch (error) {
         log.error(`Error in validateDependencies tool: ${error.message}`);
@@ -44,4 +55,4 @@ export function registerValidateDependenciesTool(server) {
       }
     },
   });
-} 
\ No newline at end of file
+}
\ No newline at end of file
diff --git a/scripts/modules/ai-services.js b/scripts/modules/ai-services.js
index 4850fb97..6e9c4c81 100644
--- a/scripts/modules/ai-services.js
+++ b/scripts/modules/ai-services.js
@@ -136,9 +136,13 @@ function handleClaudeError(error) {
  * @param {string} prdPath - Path to the PRD file
  * @param {number} numTasks - Number of tasks to generate
  * @param {number} retryCount - Retry count
+ * @param {Object} options - Options object containing:
+ *   - reportProgress: Function to report progress to MCP server (optional)
+ *   - mcpLog: MCP logger object (optional)
+ *   - session: Session object from MCP server (optional)
  * @returns {Object} Claude's response
  */
-async function callClaude(prdContent, prdPath, numTasks, retryCount = 0) {
+async function callClaude(prdContent, prdPath, numTasks, retryCount = 0, { reportProgress, mcpLog, session } = {}) {
   try {
     log('info', 'Calling Claude...');
     
@@ -190,7 +194,7 @@ Expected output format:
 Important: Your response must be valid JSON only, with no additional explanation or comments.`;
 
     // Use streaming request to handle large responses and show progress
-    return await handleStreamingRequest(prdContent, prdPath, numTasks, CONFIG.maxTokens, systemPrompt);
+    return await handleStreamingRequest(prdContent, prdPath, numTasks, CONFIG.maxTokens, systemPrompt, { reportProgress, mcpLog, session } = {});
   } catch (error) {
     // Get user-friendly error message
     const userMessage = handleClaudeError(error);
@@ -224,19 +228,24 @@ Important: Your response must be valid JSON only, with no additional explanation
  * @param {number} numTasks - Number of tasks to generate
  * @param {number} maxTokens - Maximum tokens
  * @param {string} systemPrompt - System prompt
+ * @param {Object} options - Options object containing:
+ *   - reportProgress: Function to report progress to MCP server (optional)
+ *   - mcpLog: MCP logger object (optional)
+ *   - session: Session object from MCP server (optional)
  * @returns {Object} Claude's response
  */
-async function handleStreamingRequest(prdContent, prdPath, numTasks, maxTokens, systemPrompt) {
+async function handleStreamingRequest(prdContent, prdPath, numTasks, maxTokens, systemPrompt, { reportProgress, mcpLog, session } = {}) {
   const loadingIndicator = startLoadingIndicator('Generating tasks from PRD...');
+  if (reportProgress) { await reportProgress({ progress: 0 }); }
   let responseText = '';
   let streamingInterval = null;
   
   try {
     // Use streaming for handling large responses
     const stream = await anthropic.messages.create({
-      model: CONFIG.model,
-      max_tokens: maxTokens,
-      temperature: CONFIG.temperature,
+      model: session?.env?.ANTHROPIC_MODEL || CONFIG.model,
+      max_tokens: session?.env?.MAX_TOKENS || maxTokens,
+      temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
       system: systemPrompt,
       messages: [
         {
@@ -261,6 +270,12 @@ async function handleStreamingRequest(prdContent, prdPath, numTasks, maxTokens,
       if (chunk.type === 'content_block_delta' && chunk.delta.text) {
         responseText += chunk.delta.text;
       }
+      if (reportProgress) {
+        await reportProgress({ progress: (responseText.length / maxTokens) * 100 });
+      }
+      if (mcpLog) {
+        mcpLog.info(`Progress: ${responseText.length / maxTokens * 100}%`);
+      }
     }
     
     if (streamingInterval) clearInterval(streamingInterval);
@@ -355,9 +370,13 @@ function processClaudeResponse(textContent, numTasks, retryCount, prdContent, pr
  * @param {number} numSubtasks - Number of subtasks to generate
  * @param {number} nextSubtaskId - Next subtask ID
  * @param {string} additionalContext - Additional context
+ * @param {Object} options - Options object containing:
+ *   - reportProgress: Function to report progress to MCP server (optional)
+ *   - mcpLog: MCP logger object (optional)
+ *   - session: Session object from MCP server (optional)
  * @returns {Array} Generated subtasks
  */
-async function generateSubtasks(task, numSubtasks, nextSubtaskId, additionalContext = '') {
+async function generateSubtasks(task, numSubtasks, nextSubtaskId, additionalContext = '', { reportProgress, mcpLog, session } = {}) {
   try {
     log('info', `Generating ${numSubtasks} subtasks for task ${task.id}: ${task.title}`);
     
@@ -418,12 +437,14 @@ Note on dependencies: Subtasks can depend on other subtasks with lower IDs. Use
         process.stdout.write(`Generating subtasks for task ${task.id}${'.'.repeat(dotCount)}`);
         dotCount = (dotCount + 1) % 4;
       }, 500);
+
+      // TODO: MOVE THIS TO THE STREAM REQUEST FUNCTION (DRY)
       
       // Use streaming API call
       const stream = await anthropic.messages.create({
-        model: CONFIG.model,
-        max_tokens: CONFIG.maxTokens,
-        temperature: CONFIG.temperature,
+        model: session?.env?.ANTHROPIC_MODEL || CONFIG.model,
+        max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+        temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
         system: systemPrompt,
         messages: [
           {
@@ -439,6 +460,12 @@ Note on dependencies: Subtasks can depend on other subtasks with lower IDs. Use
         if (chunk.type === 'content_block_delta' && chunk.delta.text) {
           responseText += chunk.delta.text;
         }
+        if (reportProgress) {
+          await reportProgress({ progress: (responseText.length / CONFIG.maxTokens) * 100 });
+        }
+        if (mcpLog) {
+          mcpLog.info(`Progress: ${responseText.length / CONFIG.maxTokens * 100}%`);
+        }
       }
       
       if (streamingInterval) clearInterval(streamingInterval);
@@ -464,15 +491,19 @@ Note on dependencies: Subtasks can depend on other subtasks with lower IDs. Use
  * @param {number} numSubtasks - Number of subtasks to generate
  * @param {number} nextSubtaskId - Next subtask ID
  * @param {string} additionalContext - Additional context
+ * @param {Object} options - Options object containing:
+ *   - reportProgress: Function to report progress to MCP server (optional)
+ *   - mcpLog: MCP logger object (optional)
+ *   - session: Session object from MCP server (optional)
  * @returns {Array} Generated subtasks
  */
-async function generateSubtasksWithPerplexity(task, numSubtasks = 3, nextSubtaskId = 1, additionalContext = '') {
+async function generateSubtasksWithPerplexity(task, numSubtasks = 3, nextSubtaskId = 1, additionalContext = '', { reportProgress, mcpLog, session } = {}) {
   try {
     // First, perform research to get context
     log('info', `Researching context for task ${task.id}: ${task.title}`);
     const perplexityClient = getPerplexityClient();
     
-    const PERPLEXITY_MODEL = process.env.PERPLEXITY_MODEL || 'sonar-pro';
+    const PERPLEXITY_MODEL = process.env.PERPLEXITY_MODEL || session?.env?.PERPLEXITY_MODEL || 'sonar-pro';
     const researchLoadingIndicator = startLoadingIndicator('Researching best practices with Perplexity AI...');
     
     // Formulate research query based on task
@@ -566,9 +597,9 @@ Note on dependencies: Subtasks can depend on other subtasks with lower IDs. Use
       
       // Use streaming API call
       const stream = await anthropic.messages.create({
-        model: CONFIG.model,
-        max_tokens: CONFIG.maxTokens,
-        temperature: CONFIG.temperature,
+        model: session?.env?.ANTHROPIC_MODEL || CONFIG.model,
+        max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+        temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
         system: systemPrompt,
         messages: [
           {
@@ -584,6 +615,12 @@ Note on dependencies: Subtasks can depend on other subtasks with lower IDs. Use
         if (chunk.type === 'content_block_delta' && chunk.delta.text) {
           responseText += chunk.delta.text;
         }
+        if (reportProgress) {
+          await reportProgress({ progress: (responseText.length / CONFIG.maxTokens) * 100 });
+        }
+        if (mcpLog) {
+          mcpLog.info(`Progress: ${responseText.length / CONFIG.maxTokens * 100}%`);
+        }
       }
       
       if (streamingInterval) clearInterval(streamingInterval);
diff --git a/scripts/modules/task-manager.js b/scripts/modules/task-manager.js
index 9abb1f37..64a5d4f3 100644
--- a/scripts/modules/task-manager.js
+++ b/scripts/modules/task-manager.js
@@ -49,19 +49,19 @@ import {
 
 // Initialize Anthropic client
 const anthropic = new Anthropic({
-  apiKey: process.env.ANTHROPIC_API_KEY,
+  apiKey: process.env.ANTHROPIC_API_KEY || session?.env?.ANTHROPIC_API_KEY,
 });
 
 // Import perplexity if available
 let perplexity;
 
 try {
-  if (process.env.PERPLEXITY_API_KEY) {
+  if (process.env.PERPLEXITY_API_KEY || session?.env?.PERPLEXITY_API_KEY) {
     // Using the existing approach from ai-services.js
     const OpenAI = (await import('openai')).default;
     
     perplexity = new OpenAI({
-      apiKey: process.env.PERPLEXITY_API_KEY, 
+      apiKey: process.env.PERPLEXITY_API_KEY || session?.env?.PERPLEXITY_API_KEY, 
       baseURL: 'https://api.perplexity.ai',
     });
     
@@ -77,8 +77,11 @@ try {
  * @param {string} prdPath - Path to the PRD file
  * @param {string} tasksPath - Path to the tasks.json file
  * @param {number} numTasks - Number of tasks to generate
+ * @param {function} reportProgress - Function to report progress to MCP server (optional)
+ * @param {Object} mcpLog - MCP logger object (optional)
+ * @param {Object} session - Session object from MCP server (optional)
  */
-async function parsePRD(prdPath, tasksPath, numTasks) {
+async function parsePRD(prdPath, tasksPath, numTasks, { reportProgress, mcpLog, session } = {}) {
   try {
     log('info', `Parsing PRD file: ${prdPath}`);
     
@@ -86,22 +89,20 @@ async function parsePRD(prdPath, tasksPath, numTasks) {
     const prdContent = fs.readFileSync(prdPath, 'utf8');
     
     // Call Claude to generate tasks
-    const tasksData = await callClaude(prdContent, prdPath, numTasks);
+    const tasksData = await callClaude(prdContent, prdPath, numTasks, { reportProgress, mcpLog, session } = {});
     
     // Create the directory if it doesn't exist
     const tasksDir = path.dirname(tasksPath);
     if (!fs.existsSync(tasksDir)) {
       fs.mkdirSync(tasksDir, { recursive: true });
     }
-    
     // Write the tasks to the file
     writeJSON(tasksPath, tasksData);
-    
     log('success', `Successfully generated ${tasksData.tasks.length} tasks from PRD`);
     log('info', `Tasks saved to: ${tasksPath}`);
     
     // Generate individual task files
-    await generateTaskFiles(tasksPath, tasksDir);
+    await generateTaskFiles(tasksPath, tasksDir, { reportProgress, mcpLog, session } = {});
     
     console.log(boxen(
       chalk.green(`Successfully generated ${tasksData.tasks.length} tasks from PRD`),
@@ -132,13 +133,16 @@ async function parsePRD(prdPath, tasksPath, numTasks) {
  * @param {number} fromId - Task ID to start updating from
  * @param {string} prompt - Prompt with new context
  * @param {boolean} useResearch - Whether to use Perplexity AI for research
+ * @param {function} reportProgress - Function to report progress to MCP server (optional)
+ * @param {Object} mcpLog - MCP logger object (optional)
+ * @param {Object} session - Session object from MCP server (optional)
  */
-async function updateTasks(tasksPath, fromId, prompt, useResearch = false) {
+async function updateTasks(tasksPath, fromId, prompt, useResearch = false, { reportProgress, mcpLog, session } = {}) {
   try {
     log('info', `Updating tasks from ID ${fromId} with prompt: "${prompt}"`);
     
     // Validate research flag
-    if (useResearch && (!perplexity || !process.env.PERPLEXITY_API_KEY)) {
+    if (useResearch && (!perplexity || !process.env.PERPLEXITY_API_KEY || session?.env?.PERPLEXITY_API_KEY)) {
       log('warn', 'Perplexity AI is not available. Falling back to Claude AI.');
       console.log(chalk.yellow('Perplexity AI is not available (API key may be missing). Falling back to Claude AI.'));
       useResearch = false;
@@ -224,7 +228,7 @@ The changes described in the prompt should be applied to ALL tasks in the list.`
         log('info', 'Using Perplexity AI for research-backed task updates');
         
         // Call Perplexity AI using format consistent with ai-services.js
-        const perplexityModel = process.env.PERPLEXITY_MODEL || 'sonar-pro';
+        const perplexityModel = process.env.PERPLEXITY_MODEL || session?.env?.PERPLEXITY_MODEL || 'sonar-pro';
         const result = await perplexity.chat.completions.create({
           model: perplexityModel,
           messages: [
@@ -245,8 +249,8 @@ IMPORTANT: In the tasks JSON above, any subtasks with "status": "done" or "statu
 Return only the updated tasks as a valid JSON array.`
             }
           ],
-          temperature: parseFloat(process.env.TEMPERATURE || CONFIG.temperature),
-          max_tokens: parseInt(process.env.MAX_TOKENS || CONFIG.maxTokens),
+          temperature: parseFloat(process.env.TEMPERATURE || session?.env?.TEMPERATURE || CONFIG.temperature),
+          max_tokens: parseInt(process.env.MAX_TOKENS || session?.env?.MAX_TOKENS || CONFIG.maxTokens),
         });
         
         const responseText = result.choices[0].message.content;
@@ -278,9 +282,9 @@ Return only the updated tasks as a valid JSON array.`
           
           // Use streaming API call
           const stream = await anthropic.messages.create({
-            model: CONFIG.model,
-            max_tokens: CONFIG.maxTokens,
-            temperature: CONFIG.temperature,
+            model: session?.env?.ANTHROPIC_MODEL || CONFIG.model,
+            max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+            temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
             system: systemPrompt,
             messages: [
               {
@@ -304,6 +308,13 @@ Return only the updated tasks as a valid JSON array.`
             if (chunk.type === 'content_block_delta' && chunk.delta.text) {
               responseText += chunk.delta.text;
             }
+            if (reportProgress) {
+              await reportProgress({ progress: (responseText.length / CONFIG.maxTokens) * 100 });
+            }
+
+            if (mcpLog) {
+              mcpLog.info(`Progress: ${responseText.length / CONFIG.maxTokens * 100}%`);
+            }
           }
           
           if (streamingInterval) clearInterval(streamingInterval);
@@ -366,9 +377,12 @@ Return only the updated tasks as a valid JSON array.`
  * @param {number} taskId - Task ID to update
  * @param {string} prompt - Prompt with new context
  * @param {boolean} useResearch - Whether to use Perplexity AI for research
+ * @param {function} reportProgress - Function to report progress to MCP server (optional)
+ * @param {Object} mcpLog - MCP logger object (optional)
+ * @param {Object} session - Session object from MCP server (optional)
  * @returns {Object} - Updated task data or null if task wasn't updated
  */
-async function updateTaskById(tasksPath, taskId, prompt, useResearch = false) {
+async function updateTaskById(tasksPath, taskId, prompt, useResearch = false, { reportProgress, mcpLog, session } = {}) {
   try {
     log('info', `Updating single task ${taskId} with prompt: "${prompt}"`);
     
@@ -383,7 +397,7 @@ async function updateTaskById(tasksPath, taskId, prompt, useResearch = false) {
     }
     
     // Validate research flag
-    if (useResearch && (!perplexity || !process.env.PERPLEXITY_API_KEY)) {
+    if (useResearch && (!perplexity || !process.env.PERPLEXITY_API_KEY || session?.env?.PERPLEXITY_API_KEY)) {
       log('warn', 'Perplexity AI is not available. Falling back to Claude AI.');
       console.log(chalk.yellow('Perplexity AI is not available (API key may be missing). Falling back to Claude AI.'));
       useResearch = false;
@@ -484,13 +498,13 @@ The changes described in the prompt should be thoughtfully applied to make the t
         log('info', 'Using Perplexity AI for research-backed task update');
         
         // Verify Perplexity API key exists
-        if (!process.env.PERPLEXITY_API_KEY) {
+        if (!process.env.PERPLEXITY_API_KEY || session?.env?.PERPLEXITY_API_KEY) {
           throw new Error('PERPLEXITY_API_KEY environment variable is missing but --research flag was used.');
         }
         
         try {
           // Call Perplexity AI
-          const perplexityModel = process.env.PERPLEXITY_MODEL || 'sonar-pro';
+          const perplexityModel = process.env.PERPLEXITY_MODEL || session?.env?.PERPLEXITY_MODEL || 'sonar-pro';
           const result = await perplexity.chat.completions.create({
             model: perplexityModel,
             messages: [
@@ -511,8 +525,8 @@ IMPORTANT: In the task JSON above, any subtasks with "status": "done" or "status
 Return only the updated task as a valid JSON object.`
               }
             ],
-            temperature: parseFloat(process.env.TEMPERATURE || CONFIG.temperature),
-            max_tokens: parseInt(process.env.MAX_TOKENS || CONFIG.maxTokens),
+            temperature: parseFloat(process.env.TEMPERATURE || session?.env?.TEMPERATURE || CONFIG.temperature),
+            max_tokens: parseInt(process.env.MAX_TOKENS || session?.env?.MAX_TOKENS || CONFIG.maxTokens),
           });
           
           const responseText = result.choices[0].message.content;
@@ -542,7 +556,7 @@ Return only the updated task as a valid JSON object.`
         
         try {
           // Verify Anthropic API key exists
-          if (!process.env.ANTHROPIC_API_KEY) {
+          if (!process.env.ANTHROPIC_API_KEY || session?.env?.ANTHROPIC_API_KEY) {
             throw new Error('ANTHROPIC_API_KEY environment variable is missing. Required for task updates.');
           }
           
@@ -557,9 +571,9 @@ Return only the updated task as a valid JSON object.`
           
           // Use streaming API call
           const stream = await anthropic.messages.create({
-            model: CONFIG.model,
-            max_tokens: CONFIG.maxTokens,
-            temperature: CONFIG.temperature,
+            model: session?.env?.ANTHROPIC_MODEL || CONFIG.model,
+            max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+            temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
             system: systemPrompt,
             messages: [
               {
@@ -583,6 +597,12 @@ Return only the updated task as a valid JSON object.`
             if (chunk.type === 'content_block_delta' && chunk.delta.text) {
               responseText += chunk.delta.text;
             }
+            if (reportProgress) {
+              await reportProgress({ progress: (responseText.length / CONFIG.maxTokens) * 100 });
+            }
+            if (mcpLog) {
+              mcpLog.info(`Progress: ${responseText.length / CONFIG.maxTokens * 100}%`);
+            }
           }
           
           if (streamingInterval) clearInterval(streamingInterval);
@@ -2034,9 +2054,12 @@ function clearSubtasks(tasksPath, taskIds) {
  * @param {string} prompt - Description of the task to add
  * @param {Array} dependencies - Task dependencies
  * @param {string} priority - Task priority
+ * @param {function} reportProgress - Function to report progress to MCP server (optional)
+ * @param {Object} mcpLog - MCP logger object (optional)
+ * @param {Object} session - Session object from MCP server (optional)
  * @returns {number} The new task ID
  */
-async function addTask(tasksPath, prompt, dependencies = [], priority = 'medium') {
+async function addTask(tasksPath, prompt, dependencies = [], priority = 'medium', { reportProgress, mcpLog, session } = {}) {
   displayBanner();
   
   // Read the existing tasks
@@ -2112,9 +2135,9 @@ async function addTask(tasksPath, prompt, dependencies = [], priority = 'medium'
   try {
     // Call Claude with streaming enabled
     const stream = await anthropic.messages.create({
-      max_tokens: CONFIG.maxTokens,
-      model: CONFIG.model,
-      temperature: CONFIG.temperature,
+      max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+      model: session?.env?.ANTHROPIC_MODEL || CONFIG.model,
+      temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
       messages: [{ role: "user", content: userPrompt }],
       system: systemPrompt,
       stream: true
@@ -2133,6 +2156,13 @@ async function addTask(tasksPath, prompt, dependencies = [], priority = 'medium'
       if (chunk.type === 'content_block_delta' && chunk.delta.text) {
         fullResponse += chunk.delta.text;
       }
+
+      if (reportProgress) {
+        await reportProgress({ progress: (fullResponse.length / CONFIG.maxTokens) * 100 });
+      }
+      if (mcpLog) {
+        mcpLog.info(`Progress: ${fullResponse.length / CONFIG.maxTokens * 100}%`);
+      }
     }
     
     if (streamingInterval) clearInterval(streamingInterval);
@@ -2213,8 +2243,11 @@ async function addTask(tasksPath, prompt, dependencies = [], priority = 'medium'
 /**
  * Analyzes task complexity and generates expansion recommendations
  * @param {Object} options Command options
+ * @param {function} reportProgress - Function to report progress to MCP server (optional)
+ * @param {Object} mcpLog - MCP logger object (optional)
+ * @param {Object} session - Session object from MCP server (optional)
  */
-async function analyzeTaskComplexity(options) {
+async function analyzeTaskComplexity(options, { reportProgress, mcpLog, session } = {}) {
   const tasksPath = options.file || 'tasks/tasks.json';
   const outputPath = options.output || 'scripts/task-complexity-report.json';
   const modelOverride = options.model;
@@ -2274,7 +2307,7 @@ Your response must be a clean JSON array only, following exactly this format:
 DO NOT include any text before or after the JSON array. No explanations, no markdown formatting.`;
           
           const result = await perplexity.chat.completions.create({
-            model: process.env.PERPLEXITY_MODEL || 'sonar-pro',
+            model: process.env.PERPLEXITY_MODEL || session?.env?.PERPLEXITY_MODEL || 'sonar-pro',
             messages: [
               {
                 role: "system", 
@@ -2285,8 +2318,8 @@ DO NOT include any text before or after the JSON array. No explanations, no mark
                 content: researchPrompt
               }
             ],
-            temperature: CONFIG.temperature,
-            max_tokens: CONFIG.maxTokens,
+            temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
+            max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
           });
           
           // Extract the response text
@@ -2315,9 +2348,9 @@ DO NOT include any text before or after the JSON array. No explanations, no mark
       async function useClaudeForComplexityAnalysis() {
         // Call the LLM API with streaming
         const stream = await anthropic.messages.create({
-          max_tokens: CONFIG.maxTokens,
-          model: modelOverride || CONFIG.model,
-          temperature: CONFIG.temperature,
+          max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+          model: modelOverride || CONFIG.model || session?.env?.ANTHROPIC_MODEL,
+          temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
           messages: [{ role: "user", content: prompt }],
           system: "You are an expert software architect and project manager analyzing task complexity. Respond only with valid JSON.",
           stream: true
@@ -2336,6 +2369,12 @@ DO NOT include any text before or after the JSON array. No explanations, no mark
           if (chunk.type === 'content_block_delta' && chunk.delta.text) {
             fullResponse += chunk.delta.text;
           }
+          if (reportProgress) {
+            await reportProgress({ progress: (fullResponse.length / CONFIG.maxTokens) * 100 });
+          }
+          if (mcpLog) {
+            mcpLog.info(`Progress: ${fullResponse.length / CONFIG.maxTokens * 100}%`);
+          }
         }
         
         clearInterval(streamingInterval);
@@ -2530,7 +2569,7 @@ Your response must be a clean JSON array only, following exactly this format:
 DO NOT include any text before or after the JSON array. No explanations, no markdown formatting.`;
 
               const result = await perplexity.chat.completions.create({
-                model: process.env.PERPLEXITY_MODEL || 'sonar-pro',
+                model: process.env.PERPLEXITY_MODEL || session?.env?.PERPLEXITY_MODEL || 'sonar-pro',
                 messages: [
                   {
                     role: "system", 
@@ -2541,8 +2580,8 @@ DO NOT include any text before or after the JSON array. No explanations, no mark
                     content: missingTasksResearchPrompt
                   }
                 ],
-                temperature: CONFIG.temperature,
-                max_tokens: CONFIG.maxTokens,
+                temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
+                max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
               });
               
               // Extract the response
@@ -2550,9 +2589,9 @@ DO NOT include any text before or after the JSON array. No explanations, no mark
             } else {
               // Use Claude
               const stream = await anthropic.messages.create({
-                max_tokens: CONFIG.maxTokens,
-                model: modelOverride || CONFIG.model,
-                temperature: CONFIG.temperature,
+                max_tokens: session?.env?.MAX_TOKENS || CONFIG.maxTokens,
+                model: modelOverride || CONFIG.model || session?.env?.ANTHROPIC_MODEL,
+                temperature: session?.env?.TEMPERATURE || CONFIG.temperature,
                 messages: [{ role: "user", content: missingTasksPrompt }],
                 system: "You are an expert software architect and project manager analyzing task complexity. Respond only with valid JSON.",
                 stream: true
@@ -2563,6 +2602,12 @@ DO NOT include any text before or after the JSON array. No explanations, no mark
                 if (chunk.type === 'content_block_delta' && chunk.delta.text) {
                   missingAnalysisResponse += chunk.delta.text;
                 }
+                if (reportProgress) {
+                  await reportProgress({ progress: (missingAnalysisResponse.length / CONFIG.maxTokens) * 100 });
+                }
+                if (mcpLog) {
+                  mcpLog.info(`Progress: ${missingAnalysisResponse.length / CONFIG.maxTokens * 100}%`);
+                }
               }
             }
             
@@ -3063,9 +3108,12 @@ async function removeSubtask(tasksPath, subtaskId, convertToTask = false, genera
  * @param {string} subtaskId - ID of the subtask to update in format "parentId.subtaskId"
  * @param {string} prompt - Prompt for generating additional information
  * @param {boolean} useResearch - Whether to use Perplexity AI for research-backed updates
+ * @param {function} reportProgress - Function to report progress to MCP server (optional)
+ * @param {Object} mcpLog - MCP logger object (optional)
+ * @param {Object} session - Session object from MCP server (optional)
  * @returns {Object|null} - The updated subtask or null if update failed
  */
-async function updateSubtaskById(tasksPath, subtaskId, prompt, useResearch = false) {
+async function updateSubtaskById(tasksPath, subtaskId, prompt, useResearch = false, { reportProgress, mcpLog, session } = {} ) {
   let loadingIndicator = null;
   try {
     log('info', `Updating subtask ${subtaskId} with prompt: "${prompt}"`);
@@ -3194,15 +3242,15 @@ Provide concrete examples, code snippets, or implementation details when relevan
 
         if (modelType === 'perplexity') {
           // Construct Perplexity payload
-          const perplexityModel = process.env.PERPLEXITY_MODEL || 'sonar-pro';
+          const perplexityModel = process.env.PERPLEXITY_MODEL || session?.env?.PERPLEXITY_MODEL || 'sonar-pro';
           const response = await client.chat.completions.create({
             model: perplexityModel,
             messages: [
               { role: 'system', content: systemPrompt },
               { role: 'user', content: userMessageContent }
             ],
-            temperature: parseFloat(process.env.TEMPERATURE || CONFIG.temperature),
-            max_tokens: parseInt(process.env.MAX_TOKENS || CONFIG.maxTokens),
+            temperature: parseFloat(process.env.TEMPERATURE || session?.env?.TEMPERATURE || CONFIG.temperature),
+            max_tokens: parseInt(process.env.MAX_TOKENS || session?.env?.MAX_TOKENS || CONFIG.maxTokens),
           });
           additionalInformation = response.choices[0].message.content.trim();
         } else { // Claude
@@ -3234,6 +3282,12 @@ Provide concrete examples, code snippets, or implementation details when relevan
               if (chunk.type === 'content_block_delta' && chunk.delta.text) {
                 responseText += chunk.delta.text;
               }
+              if (reportProgress) {
+                await reportProgress({ progress: (responseText.length / CONFIG.maxTokens) * 100 });
+              }
+              if (mcpLog) {
+                mcpLog.info(`Progress: ${responseText.length / CONFIG.maxTokens * 100}%`);
+              }
             }
           } finally {
              if (streamingInterval) clearInterval(streamingInterval);