What this error means
LiteLLM returns 200 {"tools":[]} instead of upstream 401 for token-forwarding MCP servers is a LiteLLM failure pattern reported for developers trying to fix litellm mcp gateway returning empty tools instead of propagating upstream 401 authentication errors. Based on the imported evidence, treat this as a tool-specific troubleshooting page rather than a generic API error.
Why this happens
LiteLLM PR #27847 fixes MCP SDK StreamableHTTPSessionManager silently swallowing 401 errors. For MCP servers configured with extra_headers: [Authorization], the gateway was returning 200 {tools:[]} instead of propagating upstream 401. This is a critical debugging blocker for OAuth passthrough setups.
Common causes
- When LiteLLM forwards client Bearer tokens to upstream OAuth2 MCP servers, expired or invalid tokens should return 401 — but LiteLLM silently swallows the error and returns 200 with empty tools. This makes debugging authentication failures extremely difficult in production MCP deployments.
- LiteLLM PR #27847 fixes MCP SDK StreamableHTTPSessionManager silently swallowing 401 errors. For MCP servers configured with extra_headers: [Authorization], the gateway was returning 200 {tools:[]} instead of propagating upstream 401. This is a critical debugging blocker for OAuth passthrough setups.
Quick fixes
- Confirm the exact error signature matches
LiteLLM returns 200 {"tools":[]} instead of upstream 401 for token-forwarding MCP servers. - Check the LiteLLM account, local tool state, and provider configuration involved in the failing workflow.
- Verify the account session, API key, provider settings, and environment where the failing tool is running.
Platform/tool-specific checks
- Verify the command, editor, extension, or API client that produced the error.
- Compare local settings with CI, deployment, or editor-level settings when the error appears in only one environment.
- Avoid deleting credentials, local model data, or project settings until the failing scope is clear.
Step-by-step troubleshooting
- Capture the exact error message and the command, editor action, or request that triggered it.
- Check whether the failure is account/auth, quota/rate, model/provider, local runtime, or deployment configuration.
- Review the source evidence below and compare it with your environment.
- Apply one change at a time and rerun the smallest failing action.
- Keep the working fix documented for the team or deployment environment.
How to prevent it
- Keep provider/tool configuration documented.
- Record non-secret diagnostics such as tool version, provider name, model name, and command path.
- Add a lightweight check before CI or production workflows depend on the tool.