diff --git a/README.md b/README.md
index d13378b5..f9f080b9 100644
--- a/README.md
+++ b/README.md
@@ -226,14 +226,36 @@ All resources, tools, and prompts support an optional `title` field for better U
 
 **Note:** The `register*` methods (`registerTool`, `registerPrompt`, `registerResource`) are the recommended approach for new code. The older methods (`tool`, `prompt`, `resource`) remain available for backwards compatibility.
 
+#### Title Precedence for Tools
+
+For tools specifically, there are two ways to specify a title:
+- `title` field in the tool configuration
+- `annotations.title` field (when using the older `tool()` method with annotations)
+
+The precedence order is: `title` → `annotations.title` → `name`
+
+```typescript
+// Using registerTool (recommended)
+server.registerTool("my_tool", {
+  title: "My Tool",              // This title takes precedence
+  annotations: {
+    title: "Annotation Title"    // This is ignored if title is set
+  }
+}, handler);
+
+// Using tool with annotations (older API)
+server.tool("my_tool", "description", {
+  title: "Annotation Title"      // This is used as title
+}, handler);
+```
 
 When building clients, use the provided utility to get the appropriate display name:
 
 ```typescript
 import { getDisplayName } from "@modelcontextprotocol/sdk/shared/metadataUtils.js";
 
-// Falls back to 'name' if 'title' is not provided
-const displayName = getDisplayName(tool);  // Returns title if available, otherwise name
+// Automatically handles the precedence: title → annotations.title → name
+const displayName = getDisplayName(tool);
 ```
 
 ## Running Your Server
diff --git a/src/examples/client/simpleStreamableHttp.ts b/src/examples/client/simpleStreamableHttp.ts
index 63d7d60a..efa176df 100644
--- a/src/examples/client/simpleStreamableHttp.ts
+++ b/src/examples/client/simpleStreamableHttp.ts
@@ -318,7 +318,12 @@ async function listTools(): Promise<void> {
       console.log('  No tools available');
     } else {
       for (const tool of toolsResult.tools) {
-        console.log(`  - ${getDisplayName(tool)}: ${tool.description}`);
+        const displayName = getDisplayName(tool);
+        if (displayName !== tool.name) {
+          console.log(`  - ${tool.name} (${displayName}): ${tool.description}`);
+        } else {
+          console.log(`  - ${tool.name}: ${tool.description}`);
+        }
       }
     }
   } catch (error) {
diff --git a/src/server/mcp.test.ts b/src/server/mcp.test.ts
index 6ef33540..36a8f7b8 100644
--- a/src/server/mcp.test.ts
+++ b/src/server/mcp.test.ts
@@ -18,6 +18,7 @@ import {
 import { ResourceTemplate } from "./mcp.js";
 import { completable } from "./completable.js";
 import { UriTemplate } from "../shared/uriTemplate.js";
+import { getDisplayName } from "../shared/metadataUtils.js";
 
 describe("McpServer", () => {
   /***
@@ -3598,3 +3599,140 @@ describe("prompt()", () => {
     expect(result.resources[0].mimeType).toBe("text/markdown");
   });
 });
+
+describe("Tool title precedence", () => {
+  test("should follow correct title precedence: title → annotations.title → name", async () => {
+    const mcpServer = new McpServer({
+      name: "test server",
+      version: "1.0",
+    });
+    const client = new Client({
+      name: "test client",
+      version: "1.0",
+    });
+
+    // Tool 1: Only name
+    mcpServer.tool(
+      "tool_name_only",
+      async () => ({
+        content: [{ type: "text", text: "Response" }],
+      })
+    );
+
+    // Tool 2: Name and annotations.title
+    mcpServer.tool(
+      "tool_with_annotations_title",
+      "Tool with annotations title",
+      {
+        title: "Annotations Title"
+      },
+      async () => ({
+        content: [{ type: "text", text: "Response" }],
+      })
+    );
+
+    // Tool 3: Name and title (using registerTool)
+    mcpServer.registerTool(
+      "tool_with_title",
+      {
+        title: "Regular Title",
+        description: "Tool with regular title"
+      },
+      async () => ({
+        content: [{ type: "text", text: "Response" }],
+      })
+    );
+
+    // Tool 4: All three - title should win
+    mcpServer.registerTool(
+      "tool_with_all_titles",
+      {
+        title: "Regular Title Wins",
+        description: "Tool with all titles",
+        annotations: {
+          title: "Annotations Title Should Not Show"
+        }
+      },
+      async () => ({
+        content: [{ type: "text", text: "Response" }],
+      })
+    );
+
+    const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+    await Promise.all([
+      client.connect(clientTransport),
+      mcpServer.connect(serverTransport),
+    ]);
+
+    const result = await client.request(
+      { method: "tools/list" },
+      ListToolsResultSchema,
+    );
+
+
+    expect(result.tools).toHaveLength(4);
+
+    // Tool 1: Only name - should display name
+    const tool1 = result.tools.find(t => t.name === "tool_name_only");
+    expect(tool1).toBeDefined();
+    expect(getDisplayName(tool1!)).toBe("tool_name_only");
+
+    // Tool 2: Name and annotations.title - should display annotations.title
+    const tool2 = result.tools.find(t => t.name === "tool_with_annotations_title");
+    expect(tool2).toBeDefined();
+    expect(tool2!.annotations?.title).toBe("Annotations Title");
+    expect(getDisplayName(tool2!)).toBe("Annotations Title");
+
+    // Tool 3: Name and title - should display title
+    const tool3 = result.tools.find(t => t.name === "tool_with_title");
+    expect(tool3).toBeDefined();
+    expect(tool3!.title).toBe("Regular Title");
+    expect(getDisplayName(tool3!)).toBe("Regular Title");
+
+    // Tool 4: All three - title should take precedence
+    const tool4 = result.tools.find(t => t.name === "tool_with_all_titles");
+    expect(tool4).toBeDefined();
+    expect(tool4!.title).toBe("Regular Title Wins");
+    expect(tool4!.annotations?.title).toBe("Annotations Title Should Not Show");
+    expect(getDisplayName(tool4!)).toBe("Regular Title Wins");
+  });
+
+  test("getDisplayName unit tests for title precedence", () => {
+    
+    // Test 1: Only name
+    expect(getDisplayName({ name: "tool_name" })).toBe("tool_name");
+    
+    // Test 2: Name and title - title wins
+    expect(getDisplayName({ 
+      name: "tool_name", 
+      title: "Tool Title" 
+    })).toBe("Tool Title");
+    
+    // Test 3: Name and annotations.title - annotations.title wins
+    expect(getDisplayName({ 
+      name: "tool_name",
+      annotations: { title: "Annotations Title" }
+    })).toBe("Annotations Title");
+    
+    // Test 4: All three - title wins (correct precedence)
+    expect(getDisplayName({ 
+      name: "tool_name", 
+      title: "Regular Title",
+      annotations: { title: "Annotations Title" }
+    })).toBe("Regular Title");
+    
+    // Test 5: Empty title should not be used
+    expect(getDisplayName({ 
+      name: "tool_name", 
+      title: "",
+      annotations: { title: "Annotations Title" }
+    })).toBe("Annotations Title");
+    
+    // Test 6: Undefined vs null handling
+    expect(getDisplayName({ 
+      name: "tool_name", 
+      title: undefined,
+      annotations: { title: "Annotations Title" }
+    })).toBe("Annotations Title");
+  });
+});
diff --git a/src/server/mcp.ts b/src/server/mcp.ts
index 7c77add1..3c1c00d9 100644
--- a/src/server/mcp.ts
+++ b/src/server/mcp.ts
@@ -22,6 +22,7 @@ import {
   CompleteResult,
   PromptReference,
   ResourceTemplateReference,
+  BaseMetadata,
   Resource,
   ListResourcesResult,
   ListResourceTemplatesRequestSchema,
@@ -128,7 +129,7 @@ export class McpServer {
 
             if (tool.outputSchema) {
               toolDefinition.outputSchema = zodToJsonSchema(
-                tool.outputSchema, 
+                tool.outputSchema,
                 { strictUnions: true }
               ) as Tool["outputSchema"];
             }
@@ -586,27 +587,13 @@ export class McpServer {
         throw new Error(`Resource ${uriOrTemplate} is already registered`);
       }
 
-      const registeredResource: RegisteredResource = {
+      const registeredResource = this._createRegisteredResource(
         name,
+        undefined,
+        uriOrTemplate,
         metadata,
-        readCallback: readCallback as ReadResourceCallback,
-        enabled: true,
-        disable: () => registeredResource.update({ enabled: false }),
-        enable: () => registeredResource.update({ enabled: true }),
-        remove: () => registeredResource.update({ uri: null }),
-        update: (updates) => {
-          if (typeof updates.uri !== "undefined" && updates.uri !== uriOrTemplate) {
-            delete this._registeredResources[uriOrTemplate]
-            if (updates.uri) this._registeredResources[updates.uri] = registeredResource
-          }
-          if (typeof updates.name !== "undefined") registeredResource.name = updates.name
-          if (typeof updates.metadata !== "undefined") registeredResource.metadata = updates.metadata
-          if (typeof updates.callback !== "undefined") registeredResource.readCallback = updates.callback
-          if (typeof updates.enabled !== "undefined") registeredResource.enabled = updates.enabled
-          this.sendResourceListChanged()
-        },
-      };
-      this._registeredResources[uriOrTemplate] = registeredResource;
+        readCallback as ReadResourceCallback
+      );
 
       this.setResourceRequestHandlers();
       this.sendResourceListChanged();
@@ -616,27 +603,13 @@ export class McpServer {
         throw new Error(`Resource template ${name} is already registered`);
       }
 
-      const registeredResourceTemplate: RegisteredResourceTemplate = {
-        resourceTemplate: uriOrTemplate,
+      const registeredResourceTemplate = this._createRegisteredResourceTemplate(
+        name,
+        undefined,
+        uriOrTemplate,
         metadata,
-        readCallback: readCallback as ReadResourceTemplateCallback,
-        enabled: true,
-        disable: () => registeredResourceTemplate.update({ enabled: false }),
-        enable: () => registeredResourceTemplate.update({ enabled: true }),
-        remove: () => registeredResourceTemplate.update({ name: null }),
-        update: (updates) => {
-          if (typeof updates.name !== "undefined" && updates.name !== name) {
-            delete this._registeredResourceTemplates[name]
-            if (updates.name) this._registeredResourceTemplates[updates.name] = registeredResourceTemplate
-          }
-          if (typeof updates.template !== "undefined") registeredResourceTemplate.resourceTemplate = updates.template
-          if (typeof updates.metadata !== "undefined") registeredResourceTemplate.metadata = updates.metadata
-          if (typeof updates.callback !== "undefined") registeredResourceTemplate.readCallback = updates.callback
-          if (typeof updates.enabled !== "undefined") registeredResourceTemplate.enabled = updates.enabled
-          this.sendResourceListChanged()
-        },
-      };
-      this._registeredResourceTemplates[name] = registeredResourceTemplate;
+        readCallback as ReadResourceTemplateCallback
+      );
 
       this.setResourceRequestHandlers();
       this.sendResourceListChanged();
@@ -651,11 +624,7 @@ export class McpServer {
   registerResource(
     name: string,
     uriOrTemplate: string | ResourceTemplate,
-    config: ResourceMetadata & {
-      title?: string;
-      description?: string;
-      mimeType?: string;
-    },
+    config: ResourceMetadata,
     readCallback: ReadResourceCallback | ReadResourceTemplateCallback
   ): RegisteredResource | RegisteredResourceTemplate {
     if (typeof uriOrTemplate === "string") {
@@ -663,27 +632,13 @@ export class McpServer {
         throw new Error(`Resource ${uriOrTemplate} is already registered`);
       }
 
-      const registeredResource: RegisteredResource = {
+      const registeredResource = this._createRegisteredResource(
         name,
-        metadata: config,
-        readCallback: readCallback as ReadResourceCallback,
-        enabled: true,
-        disable: () => registeredResource.update({ enabled: false }),
-        enable: () => registeredResource.update({ enabled: true }),
-        remove: () => registeredResource.update({ uri: null }),
-        update: (updates) => {
-          if (typeof updates.uri !== "undefined" && updates.uri !== uriOrTemplate) {
-            delete this._registeredResources[uriOrTemplate]
-            if (updates.uri) this._registeredResources[updates.uri] = registeredResource
-          }
-          if (typeof updates.name !== "undefined") registeredResource.name = updates.name
-          if (typeof updates.metadata !== "undefined") registeredResource.metadata = updates.metadata
-          if (typeof updates.callback !== "undefined") registeredResource.readCallback = updates.callback
-          if (typeof updates.enabled !== "undefined") registeredResource.enabled = updates.enabled
-          this.sendResourceListChanged()
-        },
-      };
-      this._registeredResources[uriOrTemplate] = registeredResource;
+        (config as BaseMetadata).title,
+        uriOrTemplate,
+        config,
+        readCallback as ReadResourceCallback
+      );
 
       this.setResourceRequestHandlers();
       this.sendResourceListChanged();
@@ -693,27 +648,13 @@ export class McpServer {
         throw new Error(`Resource template ${name} is already registered`);
       }
 
-      const registeredResourceTemplate: RegisteredResourceTemplate = {
-        resourceTemplate: uriOrTemplate,
-        metadata: config,
-        readCallback: readCallback as ReadResourceTemplateCallback,
-        enabled: true,
-        disable: () => registeredResourceTemplate.update({ enabled: false }),
-        enable: () => registeredResourceTemplate.update({ enabled: true }),
-        remove: () => registeredResourceTemplate.update({ name: null }),
-        update: (updates) => {
-          if (typeof updates.name !== "undefined" && updates.name !== name) {
-            delete this._registeredResourceTemplates[name]
-            if (updates.name) this._registeredResourceTemplates[updates.name] = registeredResourceTemplate
-          }
-          if (typeof updates.template !== "undefined") registeredResourceTemplate.resourceTemplate = updates.template
-          if (typeof updates.metadata !== "undefined") registeredResourceTemplate.metadata = updates.metadata
-          if (typeof updates.callback !== "undefined") registeredResourceTemplate.readCallback = updates.callback
-          if (typeof updates.enabled !== "undefined") registeredResourceTemplate.enabled = updates.enabled
-          this.sendResourceListChanged()
-        },
-      };
-      this._registeredResourceTemplates[name] = registeredResourceTemplate;
+      const registeredResourceTemplate = this._createRegisteredResourceTemplate(
+        name,
+        (config as BaseMetadata).title,
+        uriOrTemplate,
+        config,
+        readCallback as ReadResourceTemplateCallback
+      );
 
       this.setResourceRequestHandlers();
       this.sendResourceListChanged();
@@ -721,8 +662,108 @@ export class McpServer {
     }
   }
 
+  private _createRegisteredResource(
+    name: string,
+    title: string | undefined,
+    uri: string,
+    metadata: ResourceMetadata | undefined,
+    readCallback: ReadResourceCallback
+  ): RegisteredResource {
+    const registeredResource: RegisteredResource = {
+      name,
+      title,
+      metadata,
+      readCallback,
+      enabled: true,
+      disable: () => registeredResource.update({ enabled: false }),
+      enable: () => registeredResource.update({ enabled: true }),
+      remove: () => registeredResource.update({ uri: null }),
+      update: (updates) => {
+        if (typeof updates.uri !== "undefined" && updates.uri !== uri) {
+          delete this._registeredResources[uri]
+          if (updates.uri) this._registeredResources[updates.uri] = registeredResource
+        }
+        if (typeof updates.name !== "undefined") registeredResource.name = updates.name
+        if (typeof updates.title !== "undefined") registeredResource.title = updates.title
+        if (typeof updates.metadata !== "undefined") registeredResource.metadata = updates.metadata
+        if (typeof updates.callback !== "undefined") registeredResource.readCallback = updates.callback
+        if (typeof updates.enabled !== "undefined") registeredResource.enabled = updates.enabled
+        this.sendResourceListChanged()
+      },
+    };
+    this._registeredResources[uri] = registeredResource;
+    return registeredResource;
+  }
+
+  private _createRegisteredResourceTemplate(
+    name: string,
+    title: string | undefined,
+    template: ResourceTemplate,
+    metadata: ResourceMetadata | undefined,
+    readCallback: ReadResourceTemplateCallback
+  ): RegisteredResourceTemplate {
+    const registeredResourceTemplate: RegisteredResourceTemplate = {
+      resourceTemplate: template,
+      title,
+      metadata,
+      readCallback,
+      enabled: true,
+      disable: () => registeredResourceTemplate.update({ enabled: false }),
+      enable: () => registeredResourceTemplate.update({ enabled: true }),
+      remove: () => registeredResourceTemplate.update({ name: null }),
+      update: (updates) => {
+        if (typeof updates.name !== "undefined" && updates.name !== name) {
+          delete this._registeredResourceTemplates[name]
+          if (updates.name) this._registeredResourceTemplates[updates.name] = registeredResourceTemplate
+        }
+        if (typeof updates.title !== "undefined") registeredResourceTemplate.title = updates.title
+        if (typeof updates.template !== "undefined") registeredResourceTemplate.resourceTemplate = updates.template
+        if (typeof updates.metadata !== "undefined") registeredResourceTemplate.metadata = updates.metadata
+        if (typeof updates.callback !== "undefined") registeredResourceTemplate.readCallback = updates.callback
+        if (typeof updates.enabled !== "undefined") registeredResourceTemplate.enabled = updates.enabled
+        this.sendResourceListChanged()
+      },
+    };
+    this._registeredResourceTemplates[name] = registeredResourceTemplate;
+    return registeredResourceTemplate;
+  }
+
+  private _createRegisteredPrompt(
+    name: string,
+    title: string | undefined,
+    description: string | undefined,
+    argsSchema: PromptArgsRawShape | undefined,
+    callback: PromptCallback<PromptArgsRawShape | undefined>
+  ): RegisteredPrompt {
+    const registeredPrompt: RegisteredPrompt = {
+      title,
+      description,
+      argsSchema: argsSchema === undefined ? undefined : z.object(argsSchema),
+      callback,
+      enabled: true,
+      disable: () => registeredPrompt.update({ enabled: false }),
+      enable: () => registeredPrompt.update({ enabled: true }),
+      remove: () => registeredPrompt.update({ name: null }),
+      update: (updates) => {
+        if (typeof updates.name !== "undefined" && updates.name !== name) {
+          delete this._registeredPrompts[name]
+          if (updates.name) this._registeredPrompts[updates.name] = registeredPrompt
+        }
+        if (typeof updates.title !== "undefined") registeredPrompt.title = updates.title
+        if (typeof updates.description !== "undefined") registeredPrompt.description = updates.description
+        if (typeof updates.argsSchema !== "undefined") registeredPrompt.argsSchema = z.object(updates.argsSchema)
+        if (typeof updates.callback !== "undefined") registeredPrompt.callback = updates.callback
+        if (typeof updates.enabled !== "undefined") registeredPrompt.enabled = updates.enabled
+        this.sendPromptListChanged()
+      },
+    };
+    this._registeredPrompts[name] = registeredPrompt;
+    return registeredPrompt;
+  }
+
   private _createRegisteredTool(
     name: string,
+    title: string | undefined,
     description: string | undefined,
     inputSchema: ZodRawShape | undefined,
     outputSchema: ZodRawShape | undefined,
@@ -730,6 +771,7 @@ export class McpServer {
     callback: ToolCallback<ZodRawShape | undefined>
   ): RegisteredTool {
     const registeredTool: RegisteredTool = {
+      title,
       description,
       inputSchema:
         inputSchema === undefined ? undefined : z.object(inputSchema),
@@ -868,7 +910,7 @@ export class McpServer {
     }
     const callback = rest[0] as ToolCallback<ZodRawShape | undefined>;
 
-    return this._createRegisteredTool(name, description, inputSchema, outputSchema, annotations, callback)
+    return this._createRegisteredTool(name, undefined, description, inputSchema, outputSchema, annotations, callback)
   }
 
   /**
@@ -891,21 +933,15 @@ export class McpServer {
 
     const { title, description, inputSchema, outputSchema, annotations } = config;
 
-    const registeredTool = this._createRegisteredTool(
+    return this._createRegisteredTool(
       name,
+      title,
       description,
       inputSchema,
       outputSchema,
       annotations,
       cb as ToolCallback<ZodRawShape | undefined>
     );
-
-    // Set title if provided
-    if (title !== undefined) {
-      registeredTool.title = title;
-    }
-
-    return registeredTool;
   }
 
   /**
@@ -953,28 +989,13 @@ export class McpServer {
     }
 
     const cb = rest[0] as PromptCallback<PromptArgsRawShape | undefined>;
-    const registeredPrompt: RegisteredPrompt = {
+    const registeredPrompt = this._createRegisteredPrompt(
+      name,
+      undefined,
       description,
-      argsSchema: argsSchema === undefined ? undefined : z.object(argsSchema),
-      callback: cb,
-      enabled: true,
-      disable: () => registeredPrompt.update({ enabled: false }),
-      enable: () => registeredPrompt.update({ enabled: true }),
-      remove: () => registeredPrompt.update({ name: null }),
-      update: (updates) => {
-        if (typeof updates.name !== "undefined" && updates.name !== name) {
-          delete this._registeredPrompts[name]
-          if (updates.name) this._registeredPrompts[updates.name] = registeredPrompt
-        }
-        if (typeof updates.title !== "undefined") registeredPrompt.title = updates.title
-        if (typeof updates.description !== "undefined") registeredPrompt.description = updates.description
-        if (typeof updates.argsSchema !== "undefined") registeredPrompt.argsSchema = z.object(updates.argsSchema)
-        if (typeof updates.callback !== "undefined") registeredPrompt.callback = updates.callback
-        if (typeof updates.enabled !== "undefined") registeredPrompt.enabled = updates.enabled
-        this.sendPromptListChanged()
-      },
-    };
-    this._registeredPrompts[name] = registeredPrompt;
+      argsSchema,
+      cb
+    );
 
     this.setPromptRequestHandlers();
     this.sendPromptListChanged()
@@ -1000,29 +1021,13 @@ export class McpServer {
 
     const { title, description, arguments: argsSchema } = config;
 
-    const registeredPrompt: RegisteredPrompt = {
+    const registeredPrompt = this._createRegisteredPrompt(
+      name,
       title,
       description,
-      argsSchema: argsSchema === undefined ? undefined : z.object(argsSchema),
-      callback: cb as PromptCallback<PromptArgsRawShape | undefined>,
-      enabled: true,
-      disable: () => registeredPrompt.update({ enabled: false }),
-      enable: () => registeredPrompt.update({ enabled: true }),
-      remove: () => registeredPrompt.update({ name: null }),
-      update: (updates) => {
-        if (typeof updates.name !== "undefined" && updates.name !== name) {
-          delete this._registeredPrompts[name]
-          if (updates.name) this._registeredPrompts[updates.name] = registeredPrompt
-        }
-        if (typeof updates.title !== "undefined") registeredPrompt.title = updates.title
-        if (typeof updates.description !== "undefined") registeredPrompt.description = updates.description
-        if (typeof updates.argsSchema !== "undefined") registeredPrompt.argsSchema = z.object(updates.argsSchema)
-        if (typeof updates.callback !== "undefined") registeredPrompt.callback = updates.callback
-        if (typeof updates.enabled !== "undefined") registeredPrompt.enabled = updates.enabled
-        this.sendPromptListChanged()
-      },
-    };
-    this._registeredPrompts[name] = registeredPrompt;
+      argsSchema,
+      cb as PromptCallback<PromptArgsRawShape | undefined>
+    );
 
     this.setPromptRequestHandlers();
     this.sendPromptListChanged()
@@ -1155,16 +1160,16 @@ export type RegisteredTool = {
   enable(): void;
   disable(): void;
   update<InputArgs extends ZodRawShape, OutputArgs extends ZodRawShape>(
-    updates: { 
-      name?: string | null, 
+    updates: {
+      name?: string | null,
       title?: string,
-      description?: string, 
-      paramsSchema?: InputArgs, 
-      outputSchema?: OutputArgs, 
-      annotations?: ToolAnnotations, 
-      callback?: ToolCallback<InputArgs>, 
-      enabled?: boolean 
-  }): void
+      description?: string,
+      paramsSchema?: InputArgs,
+      outputSchema?: OutputArgs,
+      annotations?: ToolAnnotations,
+      callback?: ToolCallback<InputArgs>,
+      enabled?: boolean
+    }): void
   remove(): void
 };
 
@@ -1212,12 +1217,13 @@ export type ReadResourceCallback = (
 
 export type RegisteredResource = {
   name: string;
+  title?: string;
   metadata?: ResourceMetadata;
   readCallback: ReadResourceCallback;
   enabled: boolean;
   enable(): void;
   disable(): void;
-  update(updates: { name?: string, uri?: string | null, metadata?: ResourceMetadata, callback?: ReadResourceCallback, enabled?: boolean }): void
+  update(updates: { name?: string, title?: string, uri?: string | null, metadata?: ResourceMetadata, callback?: ReadResourceCallback, enabled?: boolean }): void
   remove(): void
 };
 
@@ -1232,12 +1238,13 @@ export type ReadResourceTemplateCallback = (
 
 export type RegisteredResourceTemplate = {
   resourceTemplate: ResourceTemplate;
+  title?: string;
   metadata?: ResourceMetadata;
   readCallback: ReadResourceTemplateCallback;
   enabled: boolean;
   enable(): void;
   disable(): void;
-  update(updates: { name?: string | null, template?: ResourceTemplate, metadata?: ResourceMetadata, callback?: ReadResourceTemplateCallback, enabled?: boolean }): void
+  update(updates: { name?: string | null, title?: string, template?: ResourceTemplate, metadata?: ResourceMetadata, callback?: ReadResourceTemplateCallback, enabled?: boolean }): void
   remove(): void
 };
 
diff --git a/src/shared/metadataUtils.ts b/src/shared/metadataUtils.ts
index d581a6b2..410827a5 100644
--- a/src/shared/metadataUtils.ts
+++ b/src/shared/metadataUtils.ts
@@ -6,11 +6,26 @@ import { BaseMetadata } from "../types.js";
 
 /**
  * Gets the display name for an object with BaseMetadata.
- * Returns the title if available, otherwise falls back to name.
+ * For tools, the precedence is: title → annotations.title → name
+ * For other objects: title → name
  * This implements the spec requirement: "if no title is provided, name should be used for display purposes"
  */
 export function getDisplayName(metadata: BaseMetadata): string {
-  return metadata.title ?? metadata.name;
+  // First check for title (not undefined and not empty string)
+  if (metadata.title !== undefined && metadata.title !== '') {
+    return metadata.title;
+  }
+  
+  // Then check for annotations.title (only present in Tool objects)
+  if ('annotations' in metadata) {
+    const metadataWithAnnotations = metadata as BaseMetadata & { annotations?: { title?: string } };
+    if (metadataWithAnnotations.annotations?.title) {
+      return metadataWithAnnotations.annotations.title;
+    }
+  }
+  
+  // Finally fall back to name
+  return metadata.name;
 }
 
 /**
diff --git a/src/types.ts b/src/types.ts
index 9ece70d4..4d1d14d2 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -203,7 +203,14 @@ export const BaseMetadataSchema = z
   .object({
     /** Intended for programmatic or logical use, but used as a display name in past specs or fallback */
     name: z.string(),
-    /** Intended for UI and end-user contexts — optimized to be human-readable */
+    /**
+    * Intended for UI and end-user contexts — optimized to be human-readable and easily understood,
+    * even by those unfamiliar with domain-specific terminology.
+    *
+    * If not provided, the name should be used for display (except for Tool,
+    * where `annotations.title` should be given precedence over using `name`,
+    * if present).
+    */
     title: z.optional(z.string()),
   })
   .passthrough();