diff --git a/python/mcp/README.md b/python/mcp/README.md
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+# Python MCP Function (HTTP)
+
+Welcome to your new Python Function! This Function is an MCP server that
+handles any HTTP requests with MCP requests at `/mcp`. The MCP is implemented
+using [Python-SDK](https://github.com/modelcontextprotocol/python-sdk) library.
+
+## Function
+
+The main code lives in `function/func.py`.
+The Function itself is ASGI compatible, implementing `handle(scope,receive,send)`
+which is the entry for your function and all requests are handled here.
+
+You can also use `start` and `stop` methods which are implemented and you can
+see them in the bottom of the `function/func.py` file.
+
+## Project Structure
+
+```
+├── function/
+│   ├── __init__.py
+│   └── func.py          # Main function code
+├── client/
+│   └── client.py        # Example MCP client
+├── tests/
+│   └── test_func.py     # simple HTTP test
+└── pyproject.toml       # Project configuration
+```
+
+## MCP Server
+
+The MCP server is implemented via a `MCPServer` class.
+- Uses `FastMCP()` function from the Python SDK lib mentioned above
+- Uses `streamable_http_app` transport which is a lower level function in the
+Python-SDK library that is plugged in directly.
+- Integrates with the Functions middleware without running its own server
+- Routes all incoming MCP requests to the MCP handler
+
+## MCP Client
+
+Since we are using the Python-SDK library, in order to communicate easily
+with the server we can use the Python-SDK Clients. You can refer to their
+[client docs](https://github.com/modelcontextprotocol/python-sdk?tab=readme-ov-file#writing-mcp-clients)
+for more information.
+
+You can find an example implementation of a client in your function's `client/` directory.
+Refer to [Testing section](#testing) for how to run clients.
+
+## Deployment
+
+Before running your Function, it is recommended to create a virtual environment
+to isolate the project for easier dependency management.
+
+Subsequently install necessary dependencies and you're all set up.
+
+```bash
+# Create the virtual env
+python3 -m venv venv
+
+# Optional: Activate the venv
+source venv/bin/activate
+
+# Install dependencies
+pip install -e .
+```
+
+## Testing
+
+Tests can be found in `tests/` directory with a simple test for HTTP requests
+in `test_func.py`. To run tests:
+
+```bash
+# Install dependencies (if not already installed)
+pip install -e .
+
+# Run tests
+pytest
+
+# Run tests with verbose output
+pytest -v
+```
+
+For testing the MCP functionality, you can use the included client at `client/client.py`:
+
+```bash
+# run your mcp server locally
+func run --builder=host --container=false
+
+# in different terminal: run mcp client
+python client/client.py
+```
+
+## Contact and Docs
+
+Please share your functions or ask us questions in our CNCF Slack
+[Functions channel](https://cloud-native.slack.com/archives/C04LKEZUXEE)!
+
+For more info about the Python Functions implementation itself, please visit
+[python template docs](https://github.com/knative/func/blob/main/docs/function-templates/python.md)
+and
+[python default http template](https://github.com/knative/func/tree/main/templates/python/http)
+
+For even more, see [the complete documentation](https://github.com/knative/func/tree/main/docs)
diff --git a/python/mcp/client/client.py b/python/mcp/client/client.py
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+++ b/python/mcp/client/client.py
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+import asyncio
+from mcp import ClientSession
+from mcp.client.streamable_http import streamablehttp_client
+
+async def main():
+    # check your running Function MCP Server, it will output where its available
+    # at during initialization.
+    async with streamablehttp_client("http://localhost:8080/mcp") as streams:
+        read_stream,write_stream = streams[0],streams[1]
+
+        async with ClientSession(read_stream,write_stream) as s:
+            print("Initializing connection...",end="")
+            await s.initialize()
+            print("done!\n")
+
+            # List all available tools
+            #tools = await s.list_tools()
+            #print("--- List of tools ---")
+            #print(tools.tools)
+
+            # Call hello tool which will greet Thomas
+            hello_tool = await s.call_tool(
+                name="hello_tool",
+                arguments={"name": "Thomas"}
+                )
+
+            # Print the actual content of the result
+            print(hello_tool.content[0].text)
+
+if __name__ == "__main__":
+    asyncio.run(main())
diff --git a/python/mcp/function/__init__.py b/python/mcp/function/__init__.py
new file mode 100644
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+++ b/python/mcp/function/__init__.py
@@ -0,0 +1 @@
+from .func import new
diff --git a/python/mcp/function/func.py b/python/mcp/function/func.py
new file mode 100644
index 0000000..97c46c8
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+++ b/python/mcp/function/func.py
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+# function/func.py
+
+# Function as an MCP Server implementation
+import logging
+
+from mcp.server.fastmcp import FastMCP
+import asyncio
+
+def new():
+    """ New is the only method that must be implemented by a Function.
+    The instance returned can be of any name.
+    """
+    return Function()
+
+class MCPServer:
+    """MCP server that exposes tools, resources, and prompts via the MCP protocol."""
+
+    def __init__(self):
+        # Create FastMCP instance with stateless HTTP for Kubernetes deployment
+        self.mcp = FastMCP("Function MCP Server", stateless_http=True)
+
+        self._register_tools()
+        #self._register_resources()
+        #self._register_prompts()
+
+        # Get the ASGI app from FastMCP
+        self._app = self.mcp.streamable_http_app()
+
+    def _register_tools(self):
+        """Register MCP tools."""
+        @self.mcp.tool()
+        def hello_tool(name: str) -> str:
+            """Say hello to someone."""
+            return f"Hey there {name}!"
+
+        @self.mcp.tool()
+        def add_numbers(a: int, b: int) -> int:
+            """Add two numbers together."""
+            return a + b
+
+## Other MCP objects include resources and prompts.
+## Add them here to be registered in the same fashion as tools above.
+#    def _register_resources(self):
+#        """Register MCP resources."""
+#        @self.mcp.resource("echo://{message}")
+#        def echo_resource(message: str) -> str:
+#            """Echo the message as a resource."""
+#            return f"Echo: {message}"
+#
+#    def _register_prompts(self):
+#        """Register MCP prompts."""
+#        @self.mcp.prompt()
+#        def greeting_prompt(name: str = "Big Dave"):
+#            """Generate a greeting prompt."""
+#            return [
+#                {
+#                    "role": "user",
+#                    "content": f"Please write a friendly greeting for {name}"
+#                }
+#            ]
+
+    async def handle(self, scope, receive, send):
+        """Handle ASGI requests - both lifespan and HTTP."""
+        await self._app(scope, receive, send)
+
+class Function:
+    def __init__(self):
+        """ The init method is an optional method where initialization can be
+        performed. See the start method for a startup hook which includes
+        configuration.
+        """
+        self.mcp_server = MCPServer()
+        self._mcp_initialized = False
+
+    async def handle(self, scope, receive, send):
+        """
+        Main entry to your Function.
+        This handles all the incoming requests.
+        """
+
+        # Initialize MCP server on first request
+        if not self._mcp_initialized:
+            await self._initialize_mcp()
+
+        # Route MCP requests
+        if scope['path'].startswith('/mcp'):
+            await self.mcp_server.handle(scope, receive, send)
+            return
+
+        # Default response for non-MCP requests
+        await self._send_default_response(send)
+
+    async def _initialize_mcp(self):
+        """Initialize the MCP server by sending lifespan startup event."""
+        lifespan_scope = {'type': 'lifespan', 'asgi': {'version': '3.0'}}
+        startup_sent = False
+
+        async def lifespan_receive():
+            nonlocal startup_sent
+            if not startup_sent:
+                startup_sent = True
+                return {'type': 'lifespan.startup'}
+            await asyncio.Event().wait()  # Wait forever for shutdown
+
+        async def lifespan_send(message):
+            if message['type'] == 'lifespan.startup.complete':
+                self._mcp_initialized = True
+            elif message['type'] == 'lifespan.startup.failed':
+                logging.error(f"MCP startup failed: {message}")
+
+        # Start lifespan in background
+        asyncio.create_task(self.mcp_server.handle(
+            lifespan_scope, lifespan_receive, lifespan_send
+        ))
+
+        # Brief wait for startup completion
+        await asyncio.sleep(0.1)
+
+    async def _send_default_response(self, send):
+        """
+        Send default OK response.
+        This is for your non MCP requests if desired.
+        """
+        await send({
+            'type': 'http.response.start',
+            'status': 200,
+            'headers': [[b'content-type', b'text/plain']],
+        })
+        await send({
+            'type': 'http.response.body',
+            'body': b'OK',
+        })
+
+    def start(self, cfg):
+        logging.info("Function starting")
+
+    def stop(self):
+        logging.info("Function stopping")
+
+    def alive(self):
+        return True, "Alive"
+
+    def ready(self):
+        return True, "Ready"
diff --git a/python/mcp/pyproject.toml b/python/mcp/pyproject.toml
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+++ b/python/mcp/pyproject.toml
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+[project]
+name = "function"
+description = ""
+version = "0.1.0"
+requires-python = ">=3.9"
+readme = "README.md"
+license = "MIT"
+dependencies = [
+  "httpx",
+  "pytest",
+  "pytest-asyncio",
+  "mcp"
+]
+authors = [
+  { name="Your Name", email="you@example.com"},
+]
+
+[build-system]
+requires = ["hatchling"]
+build-backend = "hatchling.build"
+
+[tool.pytest.ini_options]
+asyncio_mode = "strict"
+asyncio_default_fixture_loop_scope = "function"
+
diff --git a/python/mcp/tests/test_func.py b/python/mcp/tests/test_func.py
new file mode 100644
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+"""
+An example set of unit tests which confirm that the main handler (the
+callable function) returns 200 OK for a simple HTTP GET.
+"""
+import pytest
+from function import new
+
+
+@pytest.mark.asyncio
+async def test_function_handle():
+    f = new()  # Instantiate Function to Test
+
+    sent_ok = False
+    sent_headers = False
+    sent_body = False
+
+    # Mock Send
+    async def send(message):
+        nonlocal sent_ok
+        nonlocal sent_headers
+        nonlocal sent_body
+
+        if message.get('status') == 200:
+            sent_ok = True
+
+        if message.get('type') == 'http.response.start':
+            sent_headers = True
+
+        if message.get('type') == 'http.response.body':
+            sent_body = True
+
+    # Invoke the Function
+    await f.handle({}, {}, send)
+
+    # Assert send was called
+    assert sent_ok, "Function did not send a 200 OK"
+    assert sent_headers, "Function did not send headers"
+    assert sent_body, "Function did not send a body"