diff --git a/tool/tsh/common/proxy.go b/tool/tsh/common/proxy.go
index 86605d3c54ae1..34ac1d6c3b81f 100644
--- a/tool/tsh/common/proxy.go
+++ b/tool/tsh/common/proxy.go
@@ -515,14 +515,8 @@ func onProxyCommandApp(cf *CLIConf) error {
 		return trace.Wrap(err)
 	}
 
-	if app.IsMCP() {
-		// TODO(greedy52) refactor and implement "tsh proxy mcp".
-		switch types.GetMCPServerTransportType(app.GetURI()) {
-		case types.MCPTransportHTTP:
-			// continue
-		default:
-			return trace.BadParameter("MCP applications are not supported. Please see 'tsh mcp config --help' for more details.")
-		}
+	if err := checkProxyMCPCompatibility(cf.command, app); err != nil {
+		return trace.Wrap(err)
 	}
 
 	proxyApp, err := newLocalProxyAppWithPortMapping(cf.Context, tc, profile, appInfo.RouteToApp, app, portMapping, cf.InsecureSkipVerify)
@@ -554,6 +548,26 @@ func onProxyCommandApp(cf *CLIConf) error {
 	return nil
 }
 
+func checkProxyMCPCompatibility(command string, app types.Application) error {
+	if !app.IsMCP() {
+		switch command {
+		case "proxy mcp":
+			return trace.BadParameter("%q is not an MCP application", app.GetName())
+		default:
+			// tsh proxy app
+			return nil
+		}
+	}
+
+	mcpTransport := types.GetMCPServerTransportType(app.GetURI())
+	switch mcpTransport {
+	case types.MCPTransportHTTP:
+		return nil
+	default:
+		return trace.BadParameter("MCP applications with %s transport are not supported. Please see 'tsh mcp config --help' for more details.", mcpTransport)
+	}
+}
+
 // onProxyCommandAWS creates local proxes for AWS apps.
 func onProxyCommandAWS(cf *CLIConf) error {
 	if err := checkProxyAWSFormatCompatibility(cf); err != nil {
diff --git a/tool/tsh/common/proxy_test.go b/tool/tsh/common/proxy_test.go
index d0039df0a8533..424d7c30ef6cb 100644
--- a/tool/tsh/common/proxy_test.go
+++ b/tool/tsh/common/proxy_test.go
@@ -1754,3 +1754,61 @@ func mustDialLocalAppProxy(t *testing.T, port string, expectedName string) {
 		require.Equal(t, expectedName, r.Header.Get("Server"), "the response header \"Server\" does not have the expected value")
 	}, 5*time.Second, 50*time.Millisecond)
 }
+
+func Test_checkProxyMCPCompatibility(t *testing.T) {
+	tests := []struct {
+		name        string
+		command     string
+		appURI      string
+		checkResult require.ErrorAssertionFunc
+	}{
+		{
+			name:        "streamable HTTP allowed for tsh proxy app",
+			command:     "proxy app",
+			appURI:      "mcp+http://example.com/mcp",
+			checkResult: require.NoError,
+		},
+		{
+			name:        "streamable HTTP allowed for tsh proxy mcp",
+			command:     "proxy mcp",
+			appURI:      "mcp+http://example.com/mcp",
+			checkResult: require.NoError,
+		},
+		{
+			name:        "unsupported transport fails for tsh proxy app",
+			command:     "proxy app",
+			appURI:      "mcp+sse+http://example.com/sse",
+			checkResult: require.Error,
+		},
+		{
+			name:        "unsupported transport fails for tsh proxy mcp",
+			command:     "proxy mcp",
+			appURI:      "mcp+sse+http://example.com/sse",
+			checkResult: require.Error,
+		},
+		{
+			name:        "regular app allowed for tsh proxy app",
+			command:     "proxy app",
+			appURI:      "http://example.com",
+			checkResult: require.NoError,
+		},
+		{
+			name:        "regular app fails for tsh proxy mcp",
+			command:     "proxy mcp",
+			appURI:      "http://example.com",
+			checkResult: require.Error,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			app, err := types.NewAppV3(types.Metadata{
+				Name: t.Name(),
+			}, types.AppSpecV3{
+				URI: tt.appURI,
+			})
+			require.NoError(t, err)
+			tt.checkResult(t, checkProxyMCPCompatibility(tt.command, app))
+		})
+	}
+}
diff --git a/tool/tsh/common/tsh.go b/tool/tsh/common/tsh.go
index ef408f3ea1722..8b85f60a25b0a 100644
--- a/tool/tsh/common/tsh.go
+++ b/tool/tsh/common/tsh.go
@@ -1084,6 +1084,11 @@ func Run(ctx context.Context, args []string, opts ...CliOption) error {
 	proxyApp.Flag("port", "Specifies the listening port used by by the proxy app listener. Accepts an optional target port of a multi-port TCP app after a colon, e.g. \"1234:5678\".").Short('p').StringVar(&cf.LocalProxyPortMapping)
 	proxyApp.Flag("cluster", clusterHelp).Short('c').StringVar(&cf.SiteName)
 
+	proxyMCP := proxy.Command("mcp", "Start local proxy for MCP access.")
+	proxyMCP.Arg("app", "The name of the MCP application to start local proxy for.").Required().StringVar(&cf.AppName)
+	proxyMCP.Flag("port", "Specifies the listening port used by by the proxy app listener.").Short('p').StringVar(&cf.LocalProxyPortMapping)
+	proxyMCP.Flag("cluster", clusterHelp).Short('c').StringVar(&cf.SiteName)
+
 	proxyAWS := proxy.Command("aws", "Start local proxy for AWS access.")
 	proxyAWS.Flag("app", "Optional Name of the AWS application to use if logged into multiple.").StringVar(&cf.AppName)
 	proxyAWS.Flag("port", "Specifies the source port used by the proxy listener.").Short('p').StringVar(&cf.LocalProxyPort)
@@ -1781,6 +1786,8 @@ func Run(ctx context.Context, args []string, opts ...CliOption) error {
 		err = onProxyCommandDB(&cf)
 	case proxyApp.FullCommand():
 		err = onProxyCommandApp(&cf)
+	case proxyMCP.FullCommand():
+		err = onProxyCommandApp(&cf)
 	case proxyAWS.FullCommand():
 		err = onProxyCommandAWS(&cf)
 	case proxyAzure.FullCommand():