@@ -0,0 +1,12 @@
+---
+"@objectstack/connector-mcp": minor
+---
+
+feat(connector-mcp): a declarative stdio MCP transport runs in the declaring app's root, so its relative command and args resolve there wherever the server was started
+
+Clause-②: yes (widening)
+
+- **What changes.** For a declarative `provider: 'mcp'` connector with a stdio transport, the `mcp` provider factory now sets the child process's working directory to the app's root. It reads that root from the host through `ConnectorProviderContext.resolvePackagePath('.')`. Relative paths in the entry now resolve against the same root as the app's other relative refs, such as the `openapi` provider's `providerConfig.spec`. That covers a relative `command` path (`./bin/server`) and a script the launched program opens itself (`args: ['./scripts/server.mjs']` with `command: 'node'`). Before this change they resolved against the directory the server was started from. A boot from any other directory, such as `os verify --app examples/app-showcase/objectstack.config.ts` from the repository root, therefore registered the connector degraded, with no actions.
+- **What does not change.** A bare executable (`node`, `npx`) is still looked up on `PATH`, and an absolute command or argument resolves as before. The `declarativeStdio` policy judges the `command` string exactly as written, and it runs before the root is resolved. `providerConfig.transport` gains no key: the working directory comes from the host, and an authored `cwd` there is not used. A host that does not provide `resolvePackagePath` starts the child exactly as before, in the host's current directory. A server that opens relative files of its own now opens them under the app's root.
+- **New on the exported type.** The stdio variant of `McpTransport` gains an optional `cwd`, which the default client passes to the MCP SDK's `StdioClientTransport`. A hand-wired transport (`new ConnectorMcpPlugin({ transport })` or `createMcpConnector`) may set it. Left out, the child inherits the host's current directory, as before.
+- **Nothing to migrate.** An app that started its server from its own directory sees no difference, because both anchors were the same directory.
@@ -39,6 +39,21 @@ export type McpTransport =
           args?: string[];
           /** Environment variables for the child process — carries credentials. */
           env?: Record<string, string>;
+          /**
+           * Working directory of the child process. A relative `command` path
+           * (one with a path separator, e.g. `./bin/server`) resolves against
+           * it, and so does a relative path the launched program resolves
+           * itself, such as the script in `node ./server.mjs`. A bare
+           * executable name (`node`, `npx`) is still looked up on `PATH`, and an
+           * absolute path is unaffected. Omitted, the child inherits the host
+           * process's current directory.
+           *
+           * The `mcp` provider factory sets it for a **declarative** instance to
+           * the root of the app that declared it (ADR-0097), so one app's
+           * relative paths resolve against one anchor wherever the server was
+           * started. A hand-wired transport keeps whatever its author passes.
+           */
+          cwd?: string;
       }
     | {
           kind: 'http';
@@ -174,6 +189,8 @@ async function defaultClientFactory(
                 command: transport.command,
                 args: transport.args,
                 env: transport.env,
+                // `undefined` inherits the host's current directory, as before.
+                cwd: transport.cwd,
             }),
         );
     } else {
 
@@ -191,3 +191,110 @@ describe('mcp provider declarative stdio policy (#3055)', () => {
         expect(mat.def.name).toBe('github');
     });
 });
+
+// ── #22423 — a declarative stdio transport runs in the declaring app's root ──
+//
+// One anchor for an app's relative paths: the host's
+// `ConnectorProviderContext.resolvePackagePath('.')` (the same root the
+// `openapi` provider's `providerConfig.spec` is read under) becomes the stdio
+// child's working directory. The anchor is the host's alone; an authored
+// `providerConfig.transport.cwd` never reaches the transport. A host without
+// the member gets the transport exactly as before: no `cwd` key at all.
+
+describe('mcp provider: declarative stdio working directory (#22423)', () => {
+    const ROOT = '/srv/apps/my-app';
+    const stdioCfg = { transport: { kind: 'stdio', command: 'node', args: ['./scripts/server.mjs'] } };
+
+    function recordingResolver(answer = ROOT) {
+        const asked: string[] = [];
+        const resolvePackagePath = async (relativePath: string) => {
+            asked.push(relativePath);
+            return answer;
+        };
+        return { resolvePackagePath, asked };
+    }
+
+    it("sets the stdio cwd to the host's resolvePackagePath('.'), leaving command and args as written", async () => {
+        const { factory: clientFactory, seen } = fakeClientFactory();
+        const { resolvePackagePath, asked } = recordingResolver();
+        const factory = createMcpProviderFactory({ clientFactory, declarativeStdio: ['node'] });
+
+        await factory(ctx({ providerConfig: stdioCfg, resolvePackagePath }));
+
+        expect(asked).toEqual(['.']);
+        const t = seen.transport;
+        expect(t?.kind).toBe('stdio');
+        if (t?.kind !== 'stdio') return;
+        expect(t.cwd).toBe(ROOT);
+        expect(t.command).toBe('node');
+        expect(t.args).toEqual(['./scripts/server.mjs']);
+    });
+
+    it('keeps the transport exactly as before when the host provides no resolvePackagePath', async () => {
+        const { factory: clientFactory, seen } = fakeClientFactory();
+        const factory = createMcpProviderFactory({ clientFactory, declarativeStdio: ['node'] });
+
+        await factory(ctx({ providerConfig: stdioCfg }));
+
+        expect(seen.transport?.kind).toBe('stdio');
+        expect(Object.keys(seen.transport ?? {})).not.toContain('cwd');
+    });
+
+    it('never honours an authored providerConfig.transport.cwd: the anchor is the host\'s', async () => {
+        const authored = { transport: { ...stdioCfg.transport, cwd: '/somewhere/else' } };
+
+        const withHost = fakeClientFactory();
+        const { resolvePackagePath } = recordingResolver();
+        await createMcpProviderFactory({ clientFactory: withHost.factory, declarativeStdio: ['node'] })(
+            ctx({ providerConfig: authored, resolvePackagePath }),
+        );
+        expect(withHost.seen.transport?.kind === 'stdio' && withHost.seen.transport.cwd).toBe(ROOT);
+
+        const withoutHost = fakeClientFactory();
+        await createMcpProviderFactory({ clientFactory: withoutHost.factory, declarativeStdio: ['node'] })(
+            ctx({ providerConfig: authored }),
+        );
+        expect(Object.keys(withoutHost.seen.transport ?? {})).not.toContain('cwd');
+    });
+
+    it('does not consult the resolver for an http transport', async () => {
+        const { factory: clientFactory, seen } = fakeClientFactory();
+        const { resolvePackagePath, asked } = recordingResolver();
+        const factory = createMcpProviderFactory({ clientFactory });
+
+        await factory(
+            ctx({ providerConfig: { transport: { kind: 'http', url: 'https://mcp.example.com' } }, resolvePackagePath }),
+        );
+
+        expect(asked).toEqual([]);
+        expect(Object.keys(seen.transport ?? {})).not.toContain('cwd');
+    });
+
+    it('judges the declarativeStdio policy first: a denied command never reaches the resolver', async () => {
+        const { factory: clientFactory, seen } = fakeClientFactory();
+        const { resolvePackagePath, asked } = recordingResolver();
+        const factory = createMcpProviderFactory({ clientFactory }); // default deny
+
+        await expect(factory(ctx({ providerConfig: stdioCfg, resolvePackagePath }))).rejects.toThrow(
+            /stdio transports are disabled by default/,
+        );
+        expect(asked).toEqual([]);
+        expect(seen.transport).toBeUndefined();
+    });
+
+    it('treats a resolver failure as a configuration fault (plain, not upstream-unavailable), before any connection', async () => {
+        const { factory: clientFactory, seen } = fakeClientFactory();
+        const factory = createMcpProviderFactory({ clientFactory, declarativeStdio: ['node'] });
+        const resolvePackagePath = async (): Promise<string> => {
+            throw new Error('host cannot resolve paths here');
+        };
+
+        const err: unknown = await Promise.resolve(factory(ctx({ providerConfig: stdioCfg, resolvePackagePath }))).catch(
+            (e: unknown) => e,
+        );
+
+        expect(err).toBeInstanceOf(Error);
+        expect(isConnectorUpstreamUnavailable(err)).toBe(false);
+        expect(seen.transport).toBeUndefined();
+    });
+});
@@ -162,6 +162,18 @@ function assertDeclarativeStdioAllowed(
  * Stdio transports on declarative instances are policy-gated (default deny) —
  * see {@link McpDeclarativeStdioPolicy} (#3055).
  *
+ * A declarative stdio transport runs **in the declaring app's root** (#22423):
+ * when the host hands `ConnectorProviderContext.resolvePackagePath`, the
+ * child's working directory is `resolvePackagePath('.')`, so the app's relative
+ * `command` and `args` resolve against the same anchor as its other relative
+ * refs (the `openapi` provider's `providerConfig.spec`, read through
+ * `loadPackageFile`), not against the directory the server was started from.
+ * The anchor is the host's: `providerConfig.transport` carries no working
+ * directory, and an author cannot write one. A host without the member keeps
+ * the previous behaviour — no `cwd`, so the child inherits the host's current
+ * directory. The policy check runs first and is unchanged: it judges the
+ * `command` string exactly as written.
+ *
  * The connection is opened at materialization. Faults are classified (#3017):
  * an invalid transport shape is a *configuration* fault and throws plain —
  * fatal at boot per the ADR-0097 fail-loud contract — while a connect /
@@ -173,9 +185,15 @@ function assertDeclarativeStdioAllowed(
 export function createMcpProviderFactory(deps: McpProviderDeps = {}): ConnectorProviderFactory {
   return async (ctx) => {
     const cfg = (ctx.providerConfig ?? {}) as McpProviderConfig;
-    const transport = normalizeTransport(cfg.transport, ctx.name, ctx.auth);
+    let transport = normalizeTransport(cfg.transport, ctx.name, ctx.auth);
     if (transport.kind === 'stdio') {
       assertDeclarativeStdioAllowed(deps.declarativeStdio, transport.command, ctx.name);
+      // One anchor for the app's relative paths (#22423). A resolver that
+      // throws is a host fault: it propagates plain, a configuration error
+      // (fatal at boot), never upstream-unavailable.
+      if (ctx.resolvePackagePath) {
+        transport = { ...transport, cwd: await ctx.resolvePackagePath('.') };
+      }
     }
     const includeList = Array.isArray(cfg.include)
       ? cfg.include.filter((x): x is string => typeof x === 'string')
 
@@ -0,0 +1,156 @@
+// Copyright (c) 2026 ObjectStack. Licensed under the Apache-2.0 license.
+//
+// #22423 — the stdio transport's working directory, measured on REAL spawns.
+//
+// Nothing here injects a client: `createMcpConnector` without a `clientFactory`
+// runs the SDK-backed default, which launches the child through the MCP SDK's
+// `StdioClientTransport`. The server is a dependency-free fixture written into a
+// fresh temp directory that is never this process's own cwd, so a relative path
+// resolved against the wrong directory fails to launch. The fixture reports the
+// directory it really runs in as its one tool's description, so each case reads
+// the child's cwd back instead of inferring it.
+//
+// The last block boots the real composition seam: the automation service's
+// declarative materializer (anchored at `packageRoot`) → the `mcp` provider
+// factory → the stdio transport, from a process whose cwd is not the app's.
+
+import { mkdirSync, mkdtempSync, realpathSync, rmSync, symlinkSync, writeFileSync } from 'node:fs';
+import { tmpdir } from 'node:os';
+import { join } from 'node:path';
+import { afterAll, describe, expect, it } from 'vitest';
+import { ErrorCode } from '@modelcontextprotocol/sdk/types.js';
+import { LiteKernel } from '@objectstack/core';
+import { AutomationServicePlugin, type AutomationEngine } from '@objectstack/service-automation';
+import { ConnectorMcpPlugin } from './connector-mcp-plugin.js';
+import { createMcpConnector, type McpConnectorBundle, type McpTransport } from './mcp-connector.js';
+
+/** A minimal MCP stdio server: newline-delimited JSON-RPC, no imports beyond node. */
+const FIXTURE_SERVER = `
+import { createInterface } from 'node:readline';
+const send = (m) => process.stdout.write(JSON.stringify(m) + '\\n');
+createInterface({ input: process.stdin }).on('line', (line) => {
+  if (!line.trim()) return;
+  const msg = JSON.parse(line);
+  if (msg.id === undefined) return; // a notification
+  if (msg.method === 'initialize') {
+    send({ jsonrpc: '2.0', id: msg.id, result: {
+      protocolVersion: msg.params.protocolVersion,
+      capabilities: { tools: {} },
+      serverInfo: { name: 'cwd-fixture', version: '1.0.0' },
+    } });
+  } else if (msg.method === 'tools/list') {
+    send({ jsonrpc: '2.0', id: msg.id, result: { tools: [
+      { name: 'where_am_i', description: process.cwd(), inputSchema: { type: 'object' } },
+    ] } });
+  } else {
+    send({ jsonrpc: '2.0', id: msg.id, error: { code: -32601, message: 'method not found' } });
+  }
+});
+`;
+
+// realpath: the child's process.cwd() reports the resolved directory.
+const scratch = realpathSync(mkdtempSync(join(tmpdir(), 'connector-mcp-cwd-')));
+/** The "app": holds the server script and a relative launcher. */
+const APP = join(scratch, 'app');
+/** A second directory that holds nothing — a cwd for the absolute-path controls. */
+const ELSEWHERE = join(scratch, 'elsewhere');
+mkdirSync(join(APP, 'scripts'), { recursive: true });
+mkdirSync(ELSEWHERE);
+writeFileSync(join(APP, 'scripts', 'server.mjs'), FIXTURE_SERVER);
+// A relative COMMAND: `./bin/node-here` is this very node binary.
+mkdirSync(join(APP, 'bin'));
+symlinkSync(process.execPath, join(APP, 'bin', 'node-here'));
+
+afterAll(() => {
+    rmSync(scratch, { recursive: true, force: true });
+});
+
+/** Connect with the real SDK client, read the child's cwd, and tear down. */
+async function childCwd(transport: McpTransport): Promise<string | undefined> {
+    let bundle: McpConnectorBundle | undefined;
+    try {
+        bundle = await createMcpConnector({ name: 'cwd_probe', transport });
+        expect(bundle.def.actions?.map((a) => a.key)).toEqual(['where_am_i']);
+        return bundle.def.actions?.[0]?.description;
+    } finally {
+        await bundle?.close();
+    }
+}
+
+describe('stdio transport cwd — real spawns through the SDK (#22423)', () => {
+    it('the fixture directory is not this process cwd (otherwise nothing below discriminates)', () => {
+        expect(realpathSync(process.cwd())).not.toBe(APP);
+    });
+
+    it('a relative script arg resolves against the given cwd', async () => {
+        await expect(
+            childCwd({ kind: 'stdio', command: 'node', args: ['./scripts/server.mjs'], cwd: APP }),
+        ).resolves.toBe(APP);
+    });
+
+    it('the same relative arg with no cwd resolves against the host cwd: the child exits before the handshake', async () => {
+        await expect(
+            childCwd({ kind: 'stdio', command: 'node', args: ['./scripts/server.mjs'] }),
+        ).rejects.toMatchObject({ code: ErrorCode.ConnectionClosed });
+    });
+
+    it('a relative command path resolves against the given cwd', async () => {
+        await expect(
+            childCwd({ kind: 'stdio', command: './bin/node-here', args: ['./scripts/server.mjs'], cwd: APP }),
+        ).resolves.toBe(APP);
+    });
+
+    it('control: an absolute command and an absolute script are unaffected by cwd', async () => {
+        const absolute = { kind: 'stdio' as const, command: process.execPath, args: [join(APP, 'scripts', 'server.mjs')] };
+        await expect(childCwd({ ...absolute, cwd: ELSEWHERE })).resolves.toBe(ELSEWHERE);
+        await expect(childCwd({ ...absolute })).resolves.toBe(realpathSync(process.cwd()));
+    });
+
+    it('control: a bare executable still resolves through PATH when a cwd is given', async () => {
+        await expect(
+            childCwd({ kind: 'stdio', command: 'node', args: [join(APP, 'scripts', 'server.mjs')], cwd: ELSEWHERE }),
+        ).resolves.toBe(ELSEWHERE);
+    });
+});
+
+describe('declarative mcp instance booted from another directory (#22423)', () => {
+    it("registers its actions, the stdio child running in the automation service's packageRoot", async () => {
+        const declared = [
+            {
+                name: 'cwd_fixture',
+                label: 'Cwd Fixture',
+                type: 'api',
+                provider: 'mcp',
+                providerConfig: {
+                    transport: { kind: 'stdio', command: 'node', args: ['./scripts/server.mjs'] },
+                },
+            },
+        ];
+        const kernel = new LiteKernel({ logger: { level: 'silent' } } as never);
+        kernel.use(new AutomationServicePlugin({ packageRoot: APP }));
+        kernel.use({
+            name: 'test.connector-metadata',
+            type: 'standard',
+            version: '1.0.0',
+            dependencies: ['com.objectstack.service-automation'],
+            async init(ctx: { registerService(name: string, service: unknown): void }) {
+                ctx.registerService('objectql', {
+                    registry: { listItems: (type: string) => (type === 'connector' ? declared : []) },
+                });
+            },
+            async start() {},
+        } as never);
+        kernel.use(new ConnectorMcpPlugin({ declarativeStdio: ['node'] }));
+        try {
+            await kernel.bootstrap();
+            const engine = kernel.getService('automation') as AutomationEngine;
+            expect(engine.getConnectorDegradedReason('cwd_fixture')).toBeUndefined();
+            const descriptor = engine.getConnectorDescriptors().find((d) => d.name === 'cwd_fixture');
+            expect(descriptor?.state).toBe('ready');
+            expect(descriptor?.actions.map((a) => a.key)).toEqual(['where_am_i']);
+            expect(descriptor?.actions[0]?.description).toBe(APP);
+        } finally {
+            await kernel.shutdown();
+        }
+    });
+});