RAG-MCP: Mitigating Prompt Bloat in LLM Tool Selection via Retrieval-Augmented Generation

Large language models (LLMs) struggle to effectively utilize a growing number of external tools, such as those defined by the Model Context Protocol (MCP)\cite{IntroducingMCP}, due to prompt bloat and selection complexity. We introduce RAG-MCP, a Retrieval-Augmented Generation framework that overcomes this challenge by offloading tool discovery. RAG-MCP uses semantic retrieval to identify the most relevant MCP(s) for a given query from an external index before engaging the LLM. Only the selected tool descriptions are passed to the model, drastically reducing prompt size and simplifying decision-making. Experiments, including an MCP stress test, demonstrate RAG-MCP significantly cuts prompt tokens (e.g., by over 50%) and more than triples tool selection accuracy (43.13% vs 13.62% baseline) on benchmark tasks. RAG-MCP enables scalable and accurate tool integration for LLMs.