diff --git a/docs/en/api-guides/tools/idf-py.rst b/docs/en/api-guides/tools/idf-py.rst
index 4dda25fcf33..faf59549a06 100644
--- a/docs/en/api-guides/tools/idf-py.rst
+++ b/docs/en/api-guides/tools/idf-py.rst
@@ -317,7 +317,7 @@ To use the MCP server with an AI assistant, configure your agent or IDE to start
 
   eim run "idf.py mcp-server"
 
-2. Using ``idf.py`` directly: Run the MCP server with ``idf.py mcp-server`` from a shell where the ESP-IDF environment is already activated. The command must be executed from a valid ESP-IDF project directory, or use ``idf.py -C <project_dir> mcp-server`` to specify the project.
+2. Using ``idf.py`` directly: Run the MCP server with ``idf.py mcp-server`` from a shell where the ESP-IDF environment is already activated. The server can be started from any directory. Use ``idf.py -C <project_dir> mcp-server`` or set the ``IDF_MCP_WORKSPACE_FOLDER`` environment variable to configure a default project. If no project is configured at startup, pass project directory explicitly in each tool call.
 
 .. code-block:: bash
 
@@ -330,12 +330,15 @@ To use the MCP server with an AI assistant, configure your agent or IDE to start
 Available Tools and Resources
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
 
-The MCP server provides the following commands you can use:
+The MCP server provides the following tools:
 
 - ``set target``: Set the ESP-IDF target (esp32, esp32s3, esp32c6, etc.)
 - ``build project``: Build the ESP-IDF project with the current target
 - ``flash project``: Flash the built project to a connected device. Specify it by port name.
 - ``clean project``: Clean build artifacts
+- ``create project``: Create a new ESP-IDF project from the sample template. Can be used before any project exists.
+
+All tools accept an optional ``project_dir`` argument. When omitted, the tool operates on the directory configured at startup (``-C`` flag or ``IDF_MCP_WORKSPACE_FOLDER``). You can instruct the AI model to use a specific project directory explicitly, for example when working with multiple projects or when no default project was configured at startup.
 
 The MCP server also provides these resources: