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MCP Settings.json vs Settings.local.json Explained

Snyk
10/30/2026
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So in here, I need to create a .cloud folder. From there, I have the option to create a settings.json file or a settings.local.json file. Now the idea between these two is the settings.json is one that's more project specific that you can share and check into source control to share with the rest of your team. And then settings.local.json is just specific for you as an individual scoped to the project as well. So if you're experimenting with some other MCPs that the team's not using yet and you want to see how it works, that's a great way to get started there. But if you want to share it and have everyone use it when they pull in the project, you can put it in your settings.json file.

TL;DR

  • The .cloud folder in a Claude project holds MCP server configuration files, with two distinct options for different sharing scopes.
  • settings.json is project-wide and should be committed to source control so the entire team inherits the same MCP configuration.
  • settings.local.json is individual-scoped, making it the right choice for personal experimentation with MCPs not yet adopted by the team.

Summary

This short clip explains the practical difference between two MCP server configuration files in a Claude project: settings.json and settings.local.json. Both files live inside a .cloud folder at the project level, but they serve distinct purposes. The settings.json file is intended for team-wide, project-specific MCP configurations that can be safely committed to source control and shared with all collaborators when they pull the project. In contrast, settings.local.json is scoped to the individual developer — ideal for experimenting with new or unofficial MCP servers that the broader team hasn't adopted yet. Understanding this distinction helps developers iterate quickly on AI tooling without disrupting shared project configurations, making it easier to test integrations privately before promoting them to the team.

Chapters

0:00 - Setting Up an MCP Server
0:06 - Two Config File Options
0:16 - settings.json for Team Sharing
0:25 - settings.local.json for Personal Use

Key Quotes

0:16 "The idea between these two is the settings.json is one that's more project specific that you can share and check into source control to share with the rest of your team."
0:25 "... settings.local.json is just specific for you as an individual scoped to the project as well."
0:32 "If you're experimenting with some other MCPs that the team's not using yet and you want to see how it works, that's a great way to get started there."

FAQ

When should I use settings.local.json instead of settings.json for MCP configuration?

Use settings.local.json when you are personally experimenting with an MCP server that your team hasn't adopted yet. It keeps your local configuration isolated so it doesn't affect other developers. Once you're ready to share the MCP with the team, move the configuration to settings.json and commit it to source control.


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