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+# Transport Event Handlers Fix
+
+## Problem Statement
+
+After adding SSE (Server-Sent Events) or Streamable HTTP protocol servers, the server status did not automatically update when connections failed or closed. The status remained "connected" even when the connection was lost.
+
+## Root Cause
+
+The MCP SDK provides `onclose` and `onerror` event handlers for all transport types (SSE, StreamableHTTP, and stdio), but the MCPHub implementation was not setting up these handlers. This meant that:
+
+1. When a connection closed unexpectedly, the server status remained "connected"
+2. When transport errors occurred, the status was not updated
+3. Users could not see the actual connection state in the dashboard
+
+## Solution
+
+Added a `setupTransportEventHandlers()` helper function that:
+
+1. Sets up `onclose` handler to update status to 'disconnected' when connections close
+2. Sets up `onerror` handler to update status and capture error messages
+3. Clears keep-alive ping intervals when connections fail
+4. Logs connection state changes for debugging
+
+The handlers are set up in two places:
+
+1. After successful initial connection in `initializeClientsFromSettings()`
+2. After reconnection in `callToolWithReconnect()`
+
+## Changes Made
+
+### File: `src/services/mcpService.ts`
+
+#### New Function: `setupTransportEventHandlers()`
+
+```typescript
+const setupTransportEventHandlers = (serverInfo: ServerInfo): void => {
+  if (!serverInfo.transport) {
+    return;
+  }
+
+  // Set up onclose handler to update status when connection closes
+  serverInfo.transport.onclose = () => {
+    console.log(`Transport closed for server: ${serverInfo.name}`);
+    if (serverInfo.status === 'connected') {
+      serverInfo.status = 'disconnected';
+      serverInfo.error = 'Connection closed';
+    }
+    
+    // Clear keep-alive interval if it exists
+    if (serverInfo.keepAliveIntervalId) {
+      clearInterval(serverInfo.keepAliveIntervalId);
+      serverInfo.keepAliveIntervalId = undefined;
+    }
+  };
+
+  // Set up onerror handler to update status on connection errors
+  serverInfo.transport.onerror = (error: Error) => {
+    console.error(`Transport error for server ${serverInfo.name}:`, error);
+    if (serverInfo.status === 'connected') {
+      serverInfo.status = 'disconnected';
+      serverInfo.error = `Transport error: ${error.message}`;
+    }
+    
+    // Clear keep-alive interval if it exists
+    if (serverInfo.keepAliveIntervalId) {
+      clearInterval(serverInfo.keepAliveIntervalId);
+      serverInfo.keepAliveIntervalId = undefined;
+    }
+  };
+
+  console.log(`Transport event handlers set up for server: ${serverInfo.name}`);
+};
+```
+
+#### Integration Points
+
+1. **Initial Connection** - Added call after successful connection:
+```typescript
+if (!dataError) {
+  serverInfo.status = 'connected';
+  serverInfo.error = null;
+
+  // Set up transport event handlers for connection monitoring
+  setupTransportEventHandlers(serverInfo);
+
+  // Set up keep-alive ping for SSE connections
+  setupKeepAlive(serverInfo, expandedConf);
+}
+```
+
+2. **Reconnection** - Added call after reconnection succeeds:
+```typescript
+// Update server info with new client and transport
+serverInfo.client = client;
+serverInfo.transport = newTransport;
+serverInfo.status = 'connected';
+
+// Set up transport event handlers for the new connection
+setupTransportEventHandlers(serverInfo);
+```
+
+## Testing
+
+### Automated Tests
+
+All 169 existing tests pass, including:
+- Integration tests for SSE transport (`tests/integration/sse-service-real-client.test.ts`)
+- Integration tests for StreamableHTTP transport
+- Unit tests for MCP service functionality
+
+### Manual Testing
+
+To manually test the fix:
+
+1. **Add an SSE server** to `mcp_settings.json`:
+```json
+{
+  "mcpServers": {
+    "test-sse-server": {
+      "type": "sse",
+      "url": "http://localhost:9999/sse",
+      "enabled": true
+    }
+  }
+}
+```
+
+2. **Start MCPHub**: `pnpm dev`
+
+3. **Observe the behavior**:
+   - Server will initially show as "connecting"
+   - When connection fails (port 9999 not available), status will update to "disconnected"
+   - Error message will show: "Transport error: ..." or "Connection closed"
+
+4. **Test connection recovery**:
+   - Start an MCP server on the configured URL
+   - The status should update to "connected" when available
+   - Stop the MCP server
+   - The status should update back to "disconnected"
+
+### StreamableHTTP Testing
+
+1. **Add a StreamableHTTP server** to `mcp_settings.json`:
+```json
+{
+  "mcpServers": {
+    "test-http-server": {
+      "type": "streamable-http",
+      "url": "http://localhost:9999/mcp",
+      "enabled": true
+    }
+  }
+}
+```
+
+2. Follow the same testing steps as SSE
+
+## Benefits
+
+1. **Accurate Status**: Server status now reflects actual connection state
+2. **Better UX**: Users can see when connections fail in real-time
+3. **Debugging**: Error messages help diagnose connection issues
+4. **Resource Management**: Keep-alive intervals are properly cleaned up on connection failures
+5. **Consistent Behavior**: All transport types (SSE, StreamableHTTP, stdio) now have proper event handling
+
+## Compatibility
+
+- **Backwards Compatible**: No breaking changes to existing functionality
+- **SDK Version**: Works with `@modelcontextprotocol/sdk` v1.20.2+
+- **Node.js**: Compatible with all supported Node.js versions
+
+## Future Enhancements
+
+Potential improvements for the future:
+
+1. Add automatic reconnection logic for transient failures
+2. Add connection health metrics (uptime, error count)
+3. Emit events for UI notifications when status changes
+4. Add configurable retry strategies per server