modelcontextprotocol
diff --git a/docs/advanced/low-level-server.md b/docs/advanced/low-level-server.md
@@ -72,7 +72,7 @@ The same text the `@mcp.tool()` version produced. Two honest differences:
     MCPError: Internal server error
     ```
 
-    A JSON-RPC error, code `-32603`, with a deliberately generic message: the SDK won't leak your traceback to a remote caller. The model never finds out what it did wrong, so it can't retry. (In a test, `raise_exceptions=True` surfaces the real exception instead; see **[Testing](../get-started/testing.md)**.)
+    A JSON-RPC error, code `-32603`, with a deliberately generic message: the SDK won't leak your traceback to a remote caller. The model never finds out what it did wrong, so it can't retry. (In a test, `Client(server, raise_exceptions=True)` keeps the `MCPError` but puts the real message on it and chains the original as `__cause__`; see **[Testing](../get-started/testing.md)**.)
 
 That generalises. An exception raised from a low-level handler is **always** a protocol error, never an `is_error=True` tool result. If you want the model to read the failure and recover, validate `params.arguments` yourself and return `CallToolResult(content=[TextContent(...)], is_error=True)`. The two kinds of failure are the subject of **[Handling errors](../servers/handling-errors.md)**.
 

diff --git a/docs/client/index.md b/docs/client/index.md
@@ -197,7 +197,12 @@ This loop is correct against every server. `MCPServer` returns everything in one
 
 `Client(mcp)` with no process and no port is already a test harness for your server.
 
-There is one constructor flag built for that: `Client(mcp, raise_exceptions=True)`. It only has an effect on in-memory connections, and **[Testing](../get-started/testing.md)** is the page that explains it and builds the whole pattern around it.
+There is one constructor flag built for that: `Client(mcp, raise_exceptions=True)`. It only has an
+effect on in-memory connections (ignored for URL strings and transports). On the modern
+in-process path it does **not** make the original exception raise in place of `MCPError` — it
+unsanitises an unexpected handler crash so the `MCPError` message is `str(original)` and
+`__cause__` is the original. Tool `is_error=True` results are unchanged. **[Testing](../get-started/testing.md)**
+builds the whole pattern around it.
 
 ## Recap
 

diff --git a/docs/get-started/testing.md b/docs/get-started/testing.md
@@ -78,18 +78,52 @@ There you go! You can now extend your tests to cover more scenarios.
 
 Two different things can go wrong, and this flag only touches one of them.
 
-An exception inside one of **your tools** is not a protocol failure. It becomes a normal result with
-`is_error=True`, and the model reads the message. `raise_exceptions` doesn't change that: with or
-without it, `call_tool` returns the same `is_error=True` result. There's a whole page on it:
-**[Handling errors](../servers/handling-errors.md)**.
-
-A failure **outside** a tool body is different. On the connection `Client(mcp)` gives you, the
-server sanitises it into a generic `"Internal server error"` before the client sees it. You should
-never leak the details of an unexpected crash to a remote caller. In a test that is exactly what
-you *don't* want, and it is what `raise_exceptions=True` changes: your test sees the real message
-instead of the sanitised one.
-
-Leave it on in tests. It has no meaning in production code.
+An exception inside one of **your `@mcp.tool()` functions** is not a protocol failure. It becomes a
+normal result with `is_error=True`, and the model reads the message. `raise_exceptions` doesn't
+change that: with or without it, `call_tool` returns the same `is_error=True` result. There's a
+whole page on it: **[Handling errors](../servers/handling-errors.md)**.
+
+An **unexpected exception** that escapes a request handler as a bare Python exception is
+different. On an in-memory `Client(server)` connection the SDK still turns that into an
+`MCPError` (`-32603`) — the call raises; it does not become an `is_error` result — but by default
+it sanitises the message to `"Internal server error"` and drops the original exception. You should
+never leak a traceback to a remote caller. In a test that is exactly what you *don't* want.
+
+`raise_exceptions=True` keeps the `MCPError`, but puts `str(original)` in the message and chains
+the original as `__cause__`. Catch it *inside* the `async with` so anyio does not wrap it in an
+`ExceptionGroup` (**[Troubleshooting](../troubleshooting.md)**):
+
+```python title="test_buggy_handler.py"
+import pytest
+from mcp import Client, MCPError
+from mcp.types import INTERNAL_ERROR
+
+from server import server  # a low-level Server whose handler can KeyError
+
+
+@pytest.mark.anyio
+async def test_missing_argument_surfaces_the_real_key_error():
+    async with Client(server, raise_exceptions=True) as client:
+        with pytest.raises(MCPError) as exc_info:
+            await client.call_tool("search_books", {"query": "dune"})  # no limit
+    assert exc_info.value.error.code == INTERNAL_ERROR
+    assert isinstance(exc_info.value.__cause__, KeyError)
+```
+
+The server that makes that failure visible is a low-level `Server` (it does not validate
+`input_schema` before calling you):
+
+```python title="server.py"
+--8<-- "docs_src/testing/tutorial002.py"
+```
+
+Without the flag, the same call raises `MCPError: Internal server error` with no `__cause__`.
+With a high-level `MCPServer`, most handler failures are already converted into tool
+`is_error` results or intentional `MCPError`s before this flag can act — so the difference shows
+up mainly for unmapped crashes (and for low-level `Server` handlers).
+
+Leave it on in tests that use the in-memory client. It is ignored for `Client("https://...")`
+and for a user-supplied `Transport`: those paths never see the flag.
 
 ## In-process by default
 

diff --git a/docs_src/testing/tutorial002.py b/docs_src/testing/tutorial002.py
@@ -0,0 +1,33 @@
+from mcp.server import Server, ServerRequestContext
+from mcp.types import (
+    CallToolRequestParams,
+    CallToolResult,
+    ListToolsResult,
+    PaginatedRequestParams,
+    TextContent,
+    Tool,
+)
+
+BUGGY = Tool(
+    name="search_books",
+    description="Search the catalog by title or author.",
+    input_schema={
+        "type": "object",
+        "properties": {"query": {"type": "string"}, "limit": {"type": "integer"}},
+        "required": ["query", "limit"],
+    },
+)
+
+
+async def list_tools(ctx: ServerRequestContext, params: PaginatedRequestParams | None) -> ListToolsResult:
+    return ListToolsResult(tools=[BUGGY])
+
+
+async def call_tool(ctx: ServerRequestContext, params: CallToolRequestParams) -> CallToolResult:
+    args = params.arguments or {}
+    # Missing `limit` reaches the handler: low-level Server does not validate input_schema.
+    text = f"Found 3 books matching {args['query']!r} (showing up to {args['limit']})."
+    return CallToolResult(content=[TextContent(type="text", text=text)])
+
+
+server = Server("Bookshop", on_list_tools=list_tools, on_call_tool=call_tool)
diff --git a/src/mcp/client/client.py b/src/mcp/client/client.py
@@ -293,9 +293,24 @@ async def main():
 
     _: KW_ONLY
 
-    # TODO(Marcelo): When do `raise_exceptions=True` actually raises?
     raise_exceptions: bool = False
-    """Whether to raise exceptions from the server."""
+    """Unsanitize unexpected in-process handler failures (tests only).
+
+    Only has an effect for in-memory ``Client(server)`` connections. Ignored for
+    URL strings and user-supplied ``Transport`` instances.
+
+    On the default modern in-process path, an unmapped handler exception still
+    surfaces to the caller as ``MCPError`` either way. With ``False`` (the
+    default) the message is the opaque ``"Internal server error"`` and there is
+    no ``__cause__``. With ``True`` the message is ``str(original)`` and the
+    original exception is chained as ``__cause__``.
+
+    Does **not** turn a tool's ``is_error=True`` result into an exception, and
+    does not change intentional ``MCPError`` raised by a handler. Catch
+    ``MCPError`` *inside* ``async with Client(...)`` so anyio does not wrap it
+    in an ``ExceptionGroup``; see **Testing** and **Troubleshooting** in the
+    docs.
+    """
 
     read_timeout_seconds: float | None = None
     """Timeout for read operations."""

diff --git a/tests/docs_src/test_testing.py b/tests/docs_src/test_testing.py
@@ -6,20 +6,41 @@
 
 import pytest
 from inline_snapshot import snapshot
-from mcp_types import CallToolResult, TextContent
+from mcp_types import INTERNAL_ERROR, CallToolResult, TextContent
 
-from docs_src.testing.tutorial001 import mcp
-from mcp import Client
+from docs_src.testing import tutorial001, tutorial002
+from mcp import Client, MCPError
 from tests.docs_src._helpers import strip_server_info
 
 # See test_index.py for why this is a per-module mark and not a conftest hook.
 pytestmark = [pytest.mark.anyio, pytest.mark.filterwarnings("error::mcp.MCPDeprecationWarning")]
 
 
 async def test_call_add_tool() -> None:
-    async with Client(mcp, raise_exceptions=True) as client:
+    """tutorial001: the page's fixture-shaped happy path with `raise_exceptions=True`."""
+    async with Client(tutorial001.mcp, raise_exceptions=True) as client:
         result = await client.call_tool("add", {"a": 1, "b": 2})
-        result = strip_server_info(result, mcp)
+        result = strip_server_info(result, tutorial001.mcp)
         assert result == snapshot(
             CallToolResult(content=[TextContent(type="text", text="3")], structured_content={"result": 3})
         )
+
+
+async def test_raise_exceptions_true_chains_the_original_handler_error() -> None:
+    """The `Why raise_exceptions=True?` section: still `MCPError`, but message and `__cause__` are real."""
+    async with Client(tutorial002.server, raise_exceptions=True) as client:
+        with pytest.raises(MCPError) as exc_info:
+            await client.call_tool("search_books", {"query": "dune"})
+    assert exc_info.value.error.code == INTERNAL_ERROR
+    assert isinstance(exc_info.value.__cause__, KeyError)
+    assert exc_info.value.__cause__.args == ("limit",)
+
+
+async def test_raise_exceptions_false_sanitises_the_handler_error() -> None:
+    """Without the flag, the same low-level crash is the opaque `"Internal server error"`."""
+    async with Client(tutorial002.server, raise_exceptions=False) as client:
+        with pytest.raises(MCPError) as exc_info:
+            await client.call_tool("search_books", {"query": "dune"})
+    assert exc_info.value.error.code == INTERNAL_ERROR
+    assert exc_info.value.error.message == "Internal server error"
+    assert exc_info.value.__cause__ is None