diff --git a/Gemfile.lock b/Gemfile.lock
index 3a99330..6391669 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    model_context_protocol (0.5.2)
+    model_context_protocol (0.6.0)
       json_rpc_handler (~> 0.1)
 
 GEM
diff --git a/README.md b/README.md
index a452fde..285b60b 100644
--- a/README.md
+++ b/README.md
@@ -49,7 +49,7 @@ module ModelContextProtocol
         name: "my_server",
         tools: [SomeTool, AnotherTool],
         prompts: [MyPrompt],
-        context: { user_id: current_user.id },
+        server_context: { user_id: current_user.id },
       )
       render(json: server.handle_json(request.body.read).to_h)
     end
@@ -69,7 +69,7 @@ module ModelContextProtocol
         name: "my_server",
         tools: [SomeTool, AnotherTool],
         prompts: [MyPrompt],
-        context: { user_id: current_user.id },
+        server_context: { user_id: current_user.id },
       )
       render(json: server.handle(JSON.parse(request.body.read)).to_h)
     end
@@ -96,7 +96,7 @@ class ExampleTool < ModelContextProtocol::Tool
     required: ["message"]
 
   class << self
-    def call(message:, context:)
+    def call(message:, server_context:)
       ModelContextProtocol::Tool::Response.new([{
         type: "text",
         text: "Hello from example tool! Message: #{message}",
@@ -137,7 +137,7 @@ server = ModelContextProtocol::Server.new(
   name: "my_server",
   tools: [SomeTool, AnotherTool],
   prompts: [MyPrompt],
-  context: { user_id: current_user.id },
+  server_context: { user_id: current_user.id },
 )
 request = {
   jsonrpc: "2.0",
@@ -154,11 +154,11 @@ The gem can be configured using the `ModelContextProtocol.configure` block:
 
 ```ruby
 ModelContextProtocol.configure do |config|
-  config.exception_reporter = ->(exception, context) do
+  config.exception_reporter = ->(exception, server_context) do
     # Your exception reporting logic here
     # For example with Bugsnag:
     Bugsnag.notify(exception) do |report|
-      report.add_metadata(:model_context_protocol, context)
+      report.add_metadata(:model_context_protocol, server_context)
     end
   end
 
@@ -170,11 +170,11 @@ This is useful for systems where an application hosts more than one MCP server b
 they might require different instrumentation callbacks.
 
 configuration = ModelContextProtocol::Configuration.new
-configuration.exception_reporter = ->(exception, context) do
+configuration.exception_reporter = ->(exception, server_context) do
   # Your exception reporting logic here
   # For example with Bugsnag:
   Bugsnag.notify(exception) do |report|
-    report.add_metadata(:model_context_protocol, context)
+    report.add_metadata(:model_context_protocol, server_context)
   end
 end
 
@@ -207,9 +207,9 @@ Be sure to check the [MCP spec](https://spec.modelcontextprotocol.io/specificati
 The exception reporter receives two arguments:
 
 - `exception`: The Ruby exception object that was raised
-- `context`: A hash containing contextual information about where the error occurred
+- `server_context`: A hash containing contextual information about where the error occurred
 
-The context hash includes:
+The server_context hash includes:
 
 - For tool calls: `{ tool_name: "name", arguments: { ... } }`
 - For general request handling: `{ request: { ... } }`
@@ -248,7 +248,7 @@ class MyTool < ModelContextProtocol::Tool
     },
     required: ['message']
 
-  def self.call(message:, context:)
+  def self.call(message:, server_context:)
     Tool::Response.new([{ type: "text", text: "OK" }])
   end
 end
@@ -266,12 +266,12 @@ tool = ModelContextProtocol::Tool.define(
     title: "My Tool",
     read_only_hint: true
   }
-) do |args, context|
+) do |args, server_context|
   Tool::Response.new([{ type: "text", text: "OK" }])
 end
 ```
 
-The context parameter is the context passed into the server and can be used to pass per request information,
+The server_context parameter is the server_context passed into the server and can be used to pass per request information,
 e.g. around authentication state.
 
 ### Tool Annotations
@@ -307,7 +307,7 @@ class MyPrompt < ModelContextProtocol::Prompt
   ]
 
   class << self
-    def template(args, context:)
+    def template(args, server_context:)
       Prompt::Result.new(
         description: "Response description",
         messages: [
@@ -341,7 +341,7 @@ prompt = ModelContextProtocol::Prompt.define(
       required: true
     )
   ]
-) do |args, context:|
+) do |args, server_context:|
   Prompt::Result.new(
     description: "Response description",
     messages: [
@@ -358,7 +358,7 @@ prompt = ModelContextProtocol::Prompt.define(
 end
 ```
 
-The context parameter is the context passed into the server and can be used to pass per request information,
+The server_context parameter is the server_context passed into the server and can be used to pass per request information,
 e.g. around authentication state or user preferences.
 
 ### Key Components
@@ -376,7 +376,7 @@ Register prompts with the MCP server:
 server = ModelContextProtocol::Server.new(
   name: "my_server",
   prompts: [MyPrompt],
-  context: { user_id: current_user.id },
+  server_context: { user_id: current_user.id },
 )
 ```
 
diff --git a/examples/stdio_server.rb b/examples/stdio_server.rb
index 5e2934b..e71b1a7 100755
--- a/examples/stdio_server.rb
+++ b/examples/stdio_server.rb
@@ -15,7 +15,7 @@ class ExampleTool < ModelContextProtocol::Tool
     required: ["message"]
 
   class << self
-    def call(message:, context:)
+    def call(message:, server_context:)
       ModelContextProtocol::Tool::Response.new([{
         type: "text",
         text: "Hello from example tool! Message: #{message}",
diff --git a/lib/model_context_protocol/configuration.rb b/lib/model_context_protocol/configuration.rb
index 36222d1..97fe532 100644
--- a/lib/model_context_protocol/configuration.rb
+++ b/lib/model_context_protocol/configuration.rb
@@ -65,7 +65,7 @@ module ModelContextProtocol
     private
 
     def default_exception_reporter
-      @default_exception_reporter ||= ->(exception, context) {}
+      @default_exception_reporter ||= ->(exception, server_context) {}
     end
 
     def default_instrumentation_callback
diff --git a/lib/model_context_protocol/prompt.rb b/lib/model_context_protocol/prompt.rb
index 8e40280..6aa923f 100644
--- a/lib/model_context_protocol/prompt.rb
+++ b/lib/model_context_protocol/prompt.rb
@@ -50,7 +50,7 @@ module ModelContextProtocol
       attr_reader :description_value
       attr_reader :arguments_value
 
-      def template(args, context:)
+      def template(args, server_context:)
         raise NotImplementedError, "Subclasses must implement template"
       end
 
@@ -98,8 +98,8 @@ module ModelContextProtocol
           prompt_name name
           description description
           arguments arguments
-          define_singleton_method(:template) do |args, context:|
-            instance_exec(args, context:, &block)
+          define_singleton_method(:template) do |args, server_context:|
+            instance_exec(args, server_context:, &block)
           end
         end
       end
diff --git a/lib/model_context_protocol/server.rb b/lib/model_context_protocol/server.rb
index 4df7372..bd47b3c 100644
--- a/lib/model_context_protocol/server.rb
+++ b/lib/model_context_protocol/server.rb
@@ -20,16 +20,16 @@ module ModelContextProtocol
 
     include Instrumentation
 
-    attr_accessor :name, :tools, :prompts, :resources, :context, :configuration
+    attr_accessor :name, :tools, :prompts, :resources, :server_context, :configuration
 
-    def initialize(name: "model_context_protocol", tools: [], prompts: [], resources: [], context: nil,
+    def initialize(name: "model_context_protocol", tools: [], prompts: [], resources: [], server_context: nil,
       configuration: nil)
       @name = name
       @tools = tools.to_h { |t| [t.name_value, t] }
       @prompts = prompts.to_h { |p| [p.name_value, p] }
       @resources = resources
       @resource_index = index_resources_by_uri(resources)
-      @context = context
+      @server_context = server_context
       @configuration = ModelContextProtocol.configuration.merge(configuration)
       @handlers = {
         Methods::RESOURCES_LIST => method(:list_resources),
@@ -154,7 +154,7 @@ module ModelContextProtocol
       add_instrumentation_data(tool_name:)
 
       begin
-        tool.call(**request[:arguments], context:).to_h
+        tool.call(**request[:arguments], server_context:).to_h
       rescue => e
         raise RequestHandlerError.new("Internal error calling tool #{tool_name}", request, original_error: e)
       end
@@ -179,7 +179,7 @@ module ModelContextProtocol
       prompt_args = request[:arguments]
       prompt.validate_arguments!(prompt_args)
 
-      prompt.template(prompt_args, context:).to_h
+      prompt.template(prompt_args, server_context:).to_h
     end
 
     def list_resources(request)
@@ -202,8 +202,8 @@ module ModelContextProtocol
       resource.to_h
     end
 
-    def report_exception(exception, context = {})
-      configuration.exception_reporter.call(exception, context)
+    def report_exception(exception, server_context = {})
+      configuration.exception_reporter.call(exception, server_context)
     end
 
     def index_resources_by_uri(resources)
diff --git a/lib/model_context_protocol/tool.rb b/lib/model_context_protocol/tool.rb
index 6415b77..fa5324d 100644
--- a/lib/model_context_protocol/tool.rb
+++ b/lib/model_context_protocol/tool.rb
@@ -44,7 +44,7 @@ module ModelContextProtocol
       attr_reader :input_schema_value
       attr_reader :annotations_value
 
-      def call(*args, context:)
+      def call(*args, server_context:)
         raise NotImplementedError, "Subclasses must implement call"
       end
 
@@ -108,8 +108,8 @@ module ModelContextProtocol
           description description
           input_schema input_schema
           self.annotations(annotations) if annotations
-          define_singleton_method(:call) do |*args, context:|
-            instance_exec(*args, context:, &block)
+          define_singleton_method(:call) do |*args, server_context:|
+            instance_exec(*args, server_context:, &block)
           end
         end
       end
diff --git a/lib/model_context_protocol/version.rb b/lib/model_context_protocol/version.rb
index 14744f8..16d6321 100644
--- a/lib/model_context_protocol/version.rb
+++ b/lib/model_context_protocol/version.rb
@@ -1,5 +1,5 @@
 # frozen_string_literal: true
 
 module ModelContextProtocol
-  VERSION = "0.5.2"
+  VERSION = "0.6.0"
 end
diff --git a/test/model_context_protocol/configuration_test.rb b/test/model_context_protocol/configuration_test.rb
index b021ecb..e71efd4 100644
--- a/test/model_context_protocol/configuration_test.rb
+++ b/test/model_context_protocol/configuration_test.rb
@@ -10,10 +10,10 @@ module ModelContextProtocol
 
       # The default reporter should be callable but do nothing
       exception = StandardError.new("test error")
-      context = { test: "context" }
+      server_context = { test: "context" }
 
       # Should not raise any errors
-      config.exception_reporter.call(exception, context)
+      config.exception_reporter.call(exception, server_context)
     end
 
     test "allows setting a custom exception reporter" do
@@ -21,9 +21,9 @@ module ModelContextProtocol
       reported_exception = nil
       reported_context = nil
 
-      config.exception_reporter = ->(exception, context) do
+      config.exception_reporter = ->(exception, server_context) do
         reported_exception = exception
-        reported_context = context
+        reported_context = server_context
       end
 
       test_exception = StandardError.new("test error")
diff --git a/test/model_context_protocol/prompt_test.rb b/test/model_context_protocol/prompt_test.rb
index 9d979d0..151875c 100644
--- a/test/model_context_protocol/prompt_test.rb
+++ b/test/model_context_protocol/prompt_test.rb
@@ -12,7 +12,7 @@ module ModelContextProtocol
       ]
 
       class << self
-        def template(args, context:)
+        def template(args, server_context:)
           Prompt::Result.new(
             description: "Hello, world!",
             messages: [
@@ -35,7 +35,7 @@ module ModelContextProtocol
         ],
       }
 
-      result = prompt.template({ "test_argument" => "Hello, friend!" }, context: { user_id: 123 })
+      result = prompt.template({ "test_argument" => "Hello, friend!" }, server_context: { user_id: 123 })
 
       assert_equal expected_template_result, result.to_h
     end
@@ -49,7 +49,7 @@ module ModelContextProtocol
         ]
 
         class << self
-          def template(args, context:)
+          def template(args, server_context:)
             Prompt::Result.new(
               description: "Hello, world!",
               messages: [
@@ -77,7 +77,7 @@ module ModelContextProtocol
         ],
       }
 
-      result = prompt.template({ "test_argument" => "Hello, friend!" }, context: { user_id: 123 })
+      result = prompt.template({ "test_argument" => "Hello, friend!" }, server_context: { user_id: 123 })
       assert_equal expected_template_result, result.to_h
     end
 
@@ -89,7 +89,7 @@ module ModelContextProtocol
         ]
 
         class << self
-          def template(args, context:)
+          def template(args, server_context:)
             Prompt::Result.new(
               description: "Hello, world!",
               messages: [
@@ -115,8 +115,8 @@ module ModelContextProtocol
         arguments: [
           Prompt::Argument.new(name: "test_argument", description: "Test argument", required: true),
         ],
-      ) do |args, context:|
-        content = Content::Text.new(args["test_argument"] + " user: #{context[:user_id]}")
+      ) do |args, server_context:|
+        content = Content::Text.new(args["test_argument"] + " user: #{server_context[:user_id]}")
 
         Prompt::Result.new(
           description: "Hello, world!",
@@ -139,7 +139,7 @@ module ModelContextProtocol
         ],
       }
 
-      result = prompt.template({ "test_argument" => "Hello, friend!" }, context: { user_id: 123 })
+      result = prompt.template({ "test_argument" => "Hello, friend!" }, server_context: { user_id: 123 })
       assert_equal expected, result.to_h
     end
   end
diff --git a/test/model_context_protocol/server_test.rb b/test/model_context_protocol/server_test.rb
index 92fb9e9..dd6caa1 100644
--- a/test/model_context_protocol/server_test.rb
+++ b/test/model_context_protocol/server_test.rb
@@ -182,7 +182,7 @@ module ModelContextProtocol
       tool_args = { "arg" => "value" }
       tool_response = Tool::Response.new([{ "result" => "success" }])
 
-      @tool.expects(:call).with(**tool_args, context: @server.context).returns(tool_response)
+      @tool.expects(:call).with(**tool_args, server_context: @server.server_context).returns(tool_response)
 
       request = {
         jsonrpc: "2.0",
@@ -204,7 +204,7 @@ module ModelContextProtocol
       tool_args = { arg: "value" }
       tool_response = Tool::Response.new([{ result: "success" }])
 
-      @tool.expects(:call).with(**tool_args, context: @server.context).returns(tool_response)
+      @tool.expects(:call).with(**tool_args, server_context: @server.server_context).returns(tool_response)
 
       request = JSON.generate({
         jsonrpc: "2.0",
@@ -219,7 +219,7 @@ module ModelContextProtocol
     end
 
     test "#handle tools/call returns internal error and reports exception if the tool raises an error" do
-      @server.configuration.exception_reporter.expects(:call).with do |exception, context|
+      @server.configuration.exception_reporter.expects(:call).with do |exception, server_context|
         assert_not_nil exception
         assert_equal(
           {
@@ -230,7 +230,7 @@ module ModelContextProtocol
               id: 1,
             },
           },
-          context,
+          server_context,
         )
       end
 
@@ -553,8 +553,8 @@ module ModelContextProtocol
     test "the server configuration takes precedence over the global configuration" do
       configuration = ModelContextProtocol::Configuration.new
       local_callback = ->(data) { puts "Local callback #{data.inspect}" }
-      local_exception_reporter = ->(exception, context) {
-        puts "Local exception reporter #{exception.inspect} #{context.inspect}"
+      local_exception_reporter = ->(exception, server_context) {
+        puts "Local exception reporter #{exception.inspect} #{server_context.inspect}"
       }
       configuration.instrumentation_callback = local_callback
       configuration.exception_reporter = local_exception_reporter