diff --git a/iam-policy-autopilot-cli/src/main.rs b/iam-policy-autopilot-cli/src/main.rs
index 9082697..c4b3982 100644
--- a/iam-policy-autopilot-cli/src/main.rs
+++ b/iam-policy-autopilot-cli/src/main.rs
@@ -348,6 +348,15 @@ for direct integration with IDEs and tools. 'http' starts an HTTP server for net
               long_help = "Port number to bind the HTTP server to when using HTTP transport. \
 Only used when --transport=http. The server will bind to 127.0.0.1 (localhost) on the specified port.")]
         port: u16,
+
+        /// Run in read-only mode (no policy modifications will be applied to any AWS account)
+        #[arg(
+            long = "read-only",
+            long_help = "When enabled, the MCP server will operate in read-only mode and will not make any \
+modifications to AWS resources. Tools that would normally apply changes will instead return the generated \
+output without executing any mutations."
+        )]
+        read_only: bool,
     },
 }
 
@@ -602,8 +611,12 @@ async fn main() {
             }
         }
 
-        Commands::McpServer { transport, port } => {
-            match start_mcp_server(transport, port).await {
+        Commands::McpServer {
+            transport,
+            port,
+            read_only,
+        } => {
+            match start_mcp_server(transport, port, read_only).await {
                 Ok(()) => ExitCode::Success,
                 Err(e) => {
                     print_cli_command_error(e);
diff --git a/iam-policy-autopilot-mcp-server/src/lib.rs b/iam-policy-autopilot-mcp-server/src/lib.rs
index 3c7b60f..7019d12 100644
--- a/iam-policy-autopilot-mcp-server/src/lib.rs
+++ b/iam-policy-autopilot-mcp-server/src/lib.rs
@@ -24,7 +24,7 @@ impl Display for McpTransport {
     }
 }
 
-pub async fn start_mcp_server(transport: McpTransport, port: u16) -> Result<()> {
+pub async fn start_mcp_server(transport: McpTransport, port: u16, read_only: bool) -> Result<()> {
     info!("Starting MCP server with transport: {}", transport);
 
     let env = env_logger::Env::default().filter_or("IAMPA_LOG_LEVEL", "debug");
@@ -65,14 +65,14 @@ pub async fn start_mcp_server(transport: McpTransport, port: u16) -> Result<()>
             let bind_address: String = format!("{}:{}", BIND_ADDRESS, port);
             info!("Starting HTTP MCP server at {}", bind_address);
 
-            crate::mcp::begin_http_transport(bind_address.as_str(), path_str)
+            crate::mcp::begin_http_transport(bind_address.as_str(), path_str, read_only)
                 .await
                 .with_context(|| format!("Failed to start HTTP Server at '{bind_address}'"))?
         }
         McpTransport::Stdio => {
             info!("Starting STDIO MCP server");
 
-            crate::mcp::begin_stdio_transport(path_str)
+            crate::mcp::begin_stdio_transport(path_str, read_only)
                 .await
                 .with_context(|| "Failed to start STDIO Server".to_string())?
         }
diff --git a/iam-policy-autopilot-mcp-server/src/mcp.rs b/iam-policy-autopilot-mcp-server/src/mcp.rs
index 12c5ede..00b52dd 100644
--- a/iam-policy-autopilot-mcp-server/src/mcp.rs
+++ b/iam-policy-autopilot-mcp-server/src/mcp.rs
@@ -1,10 +1,14 @@
 use anyhow;
 use log::{error, info, trace};
 use rmcp::{
+    handler::server::tool::ToolCallContext,
     handler::server::{tool::ToolRouter, wrapper::Parameters},
-    model::{ErrorCode, ServerCapabilities, ServerInfo},
+    model::{
+        CallToolRequestParam, CallToolResult, ErrorCode, ListToolsResult, PaginatedRequestParam,
+        ServerCapabilities, ServerInfo, Tool,
+    },
     service::RequestContext,
-    tool, tool_handler, tool_router,
+    tool, tool_router,
     transport::{
         self, streamable_http_server::session::local::LocalSessionManager, StreamableHttpService,
     },
@@ -22,14 +26,16 @@ use crate::tools::{
 struct IamAutoPilotMcpServer {
     tool_router: ToolRouter<Self>,
     log_file: Option<String>,
+    read_only: bool,
 }
 
 #[tool_router]
 impl IamAutoPilotMcpServer {
-    pub fn new(log_file: Option<String>) -> Self {
+    pub fn new(log_file: Option<String>, read_only: bool) -> Self {
         Self {
             tool_router: Self::tool_router(),
             log_file,
+            read_only,
         }
     }
 
@@ -137,7 +143,6 @@ impl IamAutoPilotMcpServer {
     }
 }
 
-#[tool_handler]
 impl ServerHandler for IamAutoPilotMcpServer {
     fn get_info(&self) -> ServerInfo {
         ServerInfo {
@@ -166,14 +171,52 @@ impl ServerHandler for IamAutoPilotMcpServer {
                 ..Default::default()
         }
     }
+
+    async fn list_tools(
+        &self,
+        _: Option<PaginatedRequestParam>,
+        _: RequestContext<RoleServer>,
+    ) -> Result<ListToolsResult, McpError> {
+        let all_tools = self.tool_router.list_all();
+
+        // Filter out fix_access_denied tool when in read-only mode
+        let tools: Vec<Tool> = if self.read_only {
+            all_tools
+                .into_iter()
+                .filter(|tool| tool.name.as_ref() != "fix_access_denied")
+                .collect()
+        } else {
+            all_tools
+        };
+
+        Ok(ListToolsResult {
+            tools,
+            next_cursor: None,
+        })
+    }
+
+    async fn call_tool(
+        &self,
+        request: CallToolRequestParam,
+        context: RequestContext<RoleServer>,
+    ) -> Result<CallToolResult, McpError> {
+        let tool_context = ToolCallContext {
+            service: self,
+            name: request.name.clone(),
+            arguments: request.arguments,
+            request_context: context,
+        };
+        self.tool_router.call(tool_context).await
+    }
 }
 
 pub async fn begin_http_transport(
     bind_address: &str,
     log_file: Option<String>,
+    read_only: bool,
 ) -> anyhow::Result<()> {
     let service = StreamableHttpService::new(
-        move || Ok(IamAutoPilotMcpServer::new(log_file.clone())),
+        move || Ok(IamAutoPilotMcpServer::new(log_file.clone(), read_only)),
         LocalSessionManager::default().into(),
         Default::default(),
     );
@@ -205,8 +248,11 @@ pub async fn begin_http_transport(
     Ok(())
 }
 
-pub async fn begin_stdio_transport(log_file: Option<String>) -> anyhow::Result<()> {
-    let server = IamAutoPilotMcpServer::new(log_file);
+pub async fn begin_stdio_transport(
+    log_file: Option<String>,
+    read_only: bool,
+) -> anyhow::Result<()> {
+    let server = IamAutoPilotMcpServer::new(log_file, read_only);
     let service = server.serve(transport::stdio()).await?;
     service.waiting().await?;
     Ok(())
diff --git a/iam-policy-autopilot-mcp-server/tests/mcp_server_integration_test.rs b/iam-policy-autopilot-mcp-server/tests/mcp_server_integration_test.rs
index 92707c9..d5f4b6f 100644
--- a/iam-policy-autopilot-mcp-server/tests/mcp_server_integration_test.rs
+++ b/iam-policy-autopilot-mcp-server/tests/mcp_server_integration_test.rs
@@ -14,10 +14,12 @@ use tokio::net::TcpStream;
 use tokio::process::{Child, Command};
 use tokio::time::{sleep, Duration};
 
-async fn setup_stdio() -> RunningService<RoleClient, ()> {
+async fn setup_stdio(flags: Vec<&str>) -> RunningService<RoleClient, ()> {
     // Create MCP client using TokioChildProcess with debug binary
     let mut command = Command::new("../target/debug/iam-policy-autopilot");
-    command.args(&["mcp-server"]);
+    let mut args = vec!["mcp-server"];
+    args.extend(flags);
+    command.args(&args);
 
     ().serve(
         TokioChildProcess::new(command)
@@ -96,7 +98,7 @@ async fn setup_http() -> (RunningService<RoleClient, InitializeRequestParam>, Ch
 
 #[tokio::test]
 async fn test_stdio_list_tools() {
-    let client = setup_stdio().await;
+    let client = setup_stdio(vec![]).await;
 
     // Call list_tools to get available tools
     let tools_result = client.list_tools(None).await.unwrap();
@@ -130,7 +132,7 @@ async fn test_stdio_generate_policy() {
         .unwrap()
         .join(Path::new("tests/test_data/lambda.py"));
 
-    let client = setup_stdio().await;
+    let client = setup_stdio(vec![]).await;
     let tool_result = client
         .call_tool(CallToolRequestParam {
             name: "generate_application_policies".into(),
@@ -150,7 +152,7 @@ async fn test_stdio_generate_policy() {
 
 #[tokio::test]
 async fn test_stdio_generate_policy_for_access_denied() {
-    let client = setup_stdio().await;
+    let client = setup_stdio(vec![]).await;
     let tool_result = client
         .call_tool(CallToolRequestParam {
             name: "generate_policy_for_access_denied".into(),
@@ -252,3 +254,28 @@ async fn test_http_generate_policy_for_access_denied() {
     let _ = server_process.start_kill();
     let _ = server_process.wait().await;
 }
+
+#[tokio::test]
+async fn test_stdio_read_only_mode_hides_fix_access_denied_tool() {
+    let client = setup_stdio(vec!["--read-only"]).await;
+
+    // Call list_tools to get available tools
+    let tools_result = client.list_tools(None).await.unwrap();
+
+    // In read-only mode, we should only have 2 tools (fix_access_denied should be hidden)
+    assert_eq!(
+        tools_result.tools.len(),
+        2,
+        "Expected 2 tools in read-only mode, got {}",
+        tools_result.tools.len()
+    );
+
+    // Check that fix_access_denied is NOT present
+    let tool_names: Vec<&str> = tools_result.tools.iter().map(|t| t.name.as_ref()).collect();
+    assert!(tool_names.contains(&"generate_application_policies"));
+    assert!(tool_names.contains(&"generate_policy_for_access_denied"));
+    assert!(
+        !tool_names.contains(&"fix_access_denied"),
+        "fix_access_denied tool should be hidden in read-only mode"
+    );
+}