diff --git a/docs/servers/composition.mdx b/docs/servers/composition.mdx
index 04dc559d0..1ed826a83 100644
--- a/docs/servers/composition.mdx
+++ b/docs/servers/composition.mdx
@@ -215,7 +215,7 @@ You can configure the prefix format globally in code:
 
 ```python
 import fastmcp
-fastmcp.settings.settings.resource_prefix_format = "protocol" 
+fastmcp.settings.resource_prefix_format = "protocol" 
 ```
 
 Or via environment variable:
diff --git a/src/fastmcp/__init__.py b/src/fastmcp/__init__.py
index aaeab2340..465c23f3d 100644
--- a/src/fastmcp/__init__.py
+++ b/src/fastmcp/__init__.py
@@ -1,6 +1,9 @@
 """FastMCP - An ergonomic MCP interface."""
 
 from importlib.metadata import version
+from fastmcp.settings import Settings
+
+settings = Settings()
 
 from fastmcp.server.server import FastMCP
 from fastmcp.server.context import Context
@@ -8,7 +11,7 @@ import fastmcp.server
 
 from fastmcp.client import Client
 from fastmcp.utilities.types import Image
-from . import client, settings
+from . import client
 
 __version__ = version("fastmcp")
 __all__ = [
diff --git a/src/fastmcp/cli/cli.py b/src/fastmcp/cli/cli.py
index dd2142b14..f3e326270 100644
--- a/src/fastmcp/cli/cli.py
+++ b/src/fastmcp/cli/cli.py
@@ -18,6 +18,7 @@ from typer import Context, Exit
 import fastmcp
 from fastmcp.cli import claude
 from fastmcp.cli import run as run_module
+from fastmcp.server.server import FastMCP
 from fastmcp.utilities.logging import get_logger
 
 logger = get_logger("cli")
@@ -165,8 +166,8 @@ def dev(
 
     try:
         # Import server to get dependencies
-        server = run_module.import_server(file, server_object)
-        if hasattr(server, "dependencies") and server.dependencies is not None:
+        server: FastMCP = run_module.import_server(file, server_object)
+        if server.dependencies is not None:
             with_packages = list(set(with_packages + server.dependencies))
 
         env_vars = {}
diff --git a/src/fastmcp/client/auth/oauth.py b/src/fastmcp/client/auth/oauth.py
index e8d988c10..ca92a5cc3 100644
--- a/src/fastmcp/client/auth/oauth.py
+++ b/src/fastmcp/client/auth/oauth.py
@@ -23,10 +23,10 @@ from mcp.shared.auth import (
 )
 from pydantic import AnyHttpUrl, ValidationError
 
+from fastmcp import settings as fastmcp_global_settings
 from fastmcp.client.oauth_callback import (
     create_oauth_callback_server,
 )
-from fastmcp.settings import settings as fastmcp_global_settings
 from fastmcp.utilities.http import find_available_port
 from fastmcp.utilities.logging import get_logger
 
diff --git a/src/fastmcp/client/client.py b/src/fastmcp/client/client.py
index cc82c6eb3..952f1af81 100644
--- a/src/fastmcp/client/client.py
+++ b/src/fastmcp/client/client.py
@@ -165,7 +165,7 @@ class Client(Generic[ClientTransportT]):
 
         # handle init handshake timeout
         if init_timeout is None:
-            init_timeout = fastmcp.settings.settings.client_init_timeout
+            init_timeout = fastmcp.settings.client_init_timeout
         if isinstance(init_timeout, datetime.timedelta):
             init_timeout = init_timeout.total_seconds()
         elif not init_timeout:
diff --git a/src/fastmcp/prompts/prompt_manager.py b/src/fastmcp/prompts/prompt_manager.py
index fea5ebcd4..d7380a8d7 100644
--- a/src/fastmcp/prompts/prompt_manager.py
+++ b/src/fastmcp/prompts/prompt_manager.py
@@ -6,6 +6,7 @@ from typing import TYPE_CHECKING, Any
 
 from mcp import GetPromptResult
 
+from fastmcp import settings
 from fastmcp.exceptions import NotFoundError, PromptError
 from fastmcp.prompts.prompt import FunctionPrompt, Prompt, PromptResult
 from fastmcp.settings import DuplicateBehavior
@@ -23,10 +24,10 @@ class PromptManager:
     def __init__(
         self,
         duplicate_behavior: DuplicateBehavior | None = None,
-        mask_error_details: bool = False,
+        mask_error_details: bool | None = None,
     ):
         self._prompts: dict[str, Prompt] = {}
-        self.mask_error_details = mask_error_details
+        self.mask_error_details = mask_error_details or settings.mask_error_details
 
         # Default to "warn" if None is provided
         if duplicate_behavior is None:
diff --git a/src/fastmcp/resources/resource_manager.py b/src/fastmcp/resources/resource_manager.py
index b802d7d8c..ed299d0c0 100644
--- a/src/fastmcp/resources/resource_manager.py
+++ b/src/fastmcp/resources/resource_manager.py
@@ -7,6 +7,7 @@ from typing import Any
 
 from pydantic import AnyUrl
 
+from fastmcp import settings
 from fastmcp.exceptions import NotFoundError, ResourceError
 from fastmcp.resources.resource import Resource
 from fastmcp.resources.template import (
@@ -25,7 +26,7 @@ class ResourceManager:
     def __init__(
         self,
         duplicate_behavior: DuplicateBehavior | None = None,
-        mask_error_details: bool = False,
+        mask_error_details: bool | None = None,
     ):
         """Initialize the ResourceManager.
 
@@ -37,7 +38,7 @@ class ResourceManager:
         """
         self._resources: dict[str, Resource] = {}
         self._templates: dict[str, ResourceTemplate] = {}
-        self.mask_error_details = mask_error_details
+        self.mask_error_details = mask_error_details or settings.mask_error_details
 
         # Default to "warn" if None is provided
         if duplicate_behavior is None:
diff --git a/src/fastmcp/server/server.py b/src/fastmcp/server/server.py
index 4395a7aca..8d51e33f4 100644
--- a/src/fastmcp/server/server.py
+++ b/src/fastmcp/server/server.py
@@ -43,7 +43,6 @@ from starlette.routing import BaseRoute, Route
 
 import fastmcp
 import fastmcp.server
-import fastmcp.settings
 from fastmcp.exceptions import NotFoundError
 from fastmcp.prompts import Prompt, PromptManager
 from fastmcp.prompts.prompt import FunctionPrompt
@@ -56,6 +55,7 @@ from fastmcp.server.http import (
     create_sse_app,
     create_streamable_http_app,
 )
+from fastmcp.settings import Settings
 from fastmcp.tools import ToolManager
 from fastmcp.tools.tool import FunctionTool, Tool
 from fastmcp.utilities.cache import TimedCache
@@ -121,7 +121,6 @@ class FastMCP(Generic[LifespanResultT]):
             | None
         ) = None,
         tags: set[str] | None = None,
-        dependencies: list[str] | None = None,
         tool_serializer: Callable[[Any], str] | None = None,
         cache_expiration_seconds: float | None = None,
         on_duplicate_tools: DuplicateBehavior | None = None,
@@ -130,44 +129,44 @@ class FastMCP(Generic[LifespanResultT]):
         resource_prefix_format: Literal["protocol", "path"] | None = None,
         mask_error_details: bool | None = None,
         tools: list[Tool | Callable[..., Any]] | None = None,
-        **settings: Any,
+        dependencies: list[str] | None = None,
+        # ---
+        # ---
+        # --- The following arguments are DEPRECATED ---
+        # ---
+        # ---
+        log_level: str | None = None,
+        debug: bool | None = None,
+        host: str | None = None,
+        port: int | None = None,
+        sse_path: str | None = None,
+        message_path: str | None = None,
+        streamable_http_path: str | None = None,
+        json_response: bool | None = None,
+        stateless_http: bool | None = None,
     ):
-        if cache_expiration_seconds is not None:
-            settings["cache_expiration_seconds"] = cache_expiration_seconds
-        self.settings = fastmcp.settings.ServerSettings(**settings)
-
-        # If mask_error_details is provided, override the settings value
-        if mask_error_details is not None:
-            self.settings.mask_error_details = mask_error_details
-
-        self.resource_prefix_format: Literal["protocol", "path"]
-        if resource_prefix_format is None:
-            self.resource_prefix_format = (
-                fastmcp.settings.settings.resource_prefix_format
-            )
-        else:
-            self.resource_prefix_format = resource_prefix_format
+        self.resource_prefix_format: Literal["protocol", "path"] = (
+            resource_prefix_format or fastmcp.settings.resource_prefix_format
+        )
 
         self.tags: set[str] = tags or set()
-        self.dependencies = dependencies
+
         self._cache = TimedCache(
-            expiration=datetime.timedelta(
-                seconds=self.settings.cache_expiration_seconds
-            )
+            expiration=datetime.timedelta(seconds=cache_expiration_seconds or 0)
         )
         self._mounted_servers: dict[str, MountedServer] = {}
         self._additional_http_routes: list[BaseRoute] = []
         self._tool_manager = ToolManager(
             duplicate_behavior=on_duplicate_tools,
-            mask_error_details=self.settings.mask_error_details,
+            mask_error_details=mask_error_details,
         )
         self._resource_manager = ResourceManager(
             duplicate_behavior=on_duplicate_resources,
-            mask_error_details=self.settings.mask_error_details,
+            mask_error_details=mask_error_details,
         )
         self._prompt_manager = PromptManager(
             duplicate_behavior=on_duplicate_prompts,
-            mask_error_details=self.settings.mask_error_details,
+            mask_error_details=mask_error_details,
         )
         self._tool_serializer = tool_serializer
 
@@ -182,7 +181,7 @@ class FastMCP(Generic[LifespanResultT]):
             lifespan=_lifespan_wrapper(self, lifespan),
         )
 
-        if auth is None and self.settings.default_auth_provider == "bearer_env":
+        if auth is None and fastmcp.settings.default_auth_provider == "bearer_env":
             auth = EnvBearerAuthProvider()
         self.auth = auth
 
@@ -194,10 +193,62 @@ class FastMCP(Generic[LifespanResultT]):
 
         # Set up MCP protocol handlers
         self._setup_handlers()
+        self.dependencies = dependencies or fastmcp.settings.server_dependencies
+
+        # handle deprecated settings
+        self._handle_deprecated_settings(
+            log_level=log_level,
+            debug=debug,
+            host=host,
+            port=port,
+            sse_path=sse_path,
+            message_path=message_path,
+            streamable_http_path=streamable_http_path,
+            json_response=json_response,
+            stateless_http=stateless_http,
+        )
 
     def __repr__(self) -> str:
         return f"{type(self).__name__}({self.name!r})"
 
+    def _handle_deprecated_settings(
+        self,
+        log_level: str | None,
+        debug: bool | None,
+        host: str | None,
+        port: int | None,
+        sse_path: str | None,
+        message_path: str | None,
+        streamable_http_path: str | None,
+        json_response: bool | None,
+        stateless_http: bool | None,
+    ) -> None:
+        """Handle deprecated settings. Deprecated in 2.8.0."""
+        deprecated_settings: dict[str, Any] = {}
+
+        for name, arg in [
+            ("log_level", log_level),
+            ("debug", debug),
+            ("host", host),
+            ("port", port),
+            ("sse_path", sse_path),
+            ("message_path", message_path),
+            ("streamable_http_path", streamable_http_path),
+            ("json_response", json_response),
+            ("stateless_http", stateless_http),
+        ]:
+            if arg is not None:
+                # Deprecated in 2.8.0
+                warnings.warn(
+                    f"Providing `{name}` when creating a server is deprecated. Provide it when calling `run` or as a global setting instead.",
+                    DeprecationWarning,
+                    stacklevel=2,
+                )
+                deprecated_settings[name] = arg
+
+        combined_settings = fastmcp.settings.model_dump() | deprecated_settings
+        self._deprecated_settings = Settings(**combined_settings)
+
     @property
     def name(self) -> str:
         return self._mcp_server.name
@@ -1008,9 +1059,11 @@ class FastMCP(Generic[LifespanResultT]):
             path: Path for the endpoint (defaults to settings.streamable_http_path or settings.sse_path)
             uvicorn_config: Additional configuration for the Uvicorn server
         """
-        host = host or self.settings.host
-        port = port or self.settings.port
-        default_log_level_to_use = (log_level or self.settings.log_level).lower()
+        host = host or self._deprecated_settings.host
+        port = port or self._deprecated_settings.port
+        default_log_level_to_use = (
+            log_level or self._deprecated_settings.log_level
+        ).lower()
 
         app = self.http_app(path=path, transport=transport, middleware=middleware)
 
@@ -1084,10 +1137,10 @@ class FastMCP(Generic[LifespanResultT]):
         )
         return create_sse_app(
             server=self,
-            message_path=message_path or self.settings.message_path,
-            sse_path=path or self.settings.sse_path,
+            message_path=message_path or self._deprecated_settings.message_path,
+            sse_path=path or self._deprecated_settings.sse_path,
             auth=self.auth,
-            debug=self.settings.debug,
+            debug=self._deprecated_settings.debug,
             middleware=middleware,
         )
 
@@ -1115,6 +1168,8 @@ class FastMCP(Generic[LifespanResultT]):
         self,
         path: str | None = None,
         middleware: list[Middleware] | None = None,
+        json_response: bool | None = None,
+        stateless_http: bool | None = None,
         transport: Literal["streamable-http", "sse"] = "streamable-http",
     ) -> StarletteWithLifespan:
         """Create a Starlette app using the specified HTTP transport.
@@ -1131,21 +1186,22 @@ class FastMCP(Generic[LifespanResultT]):
         if transport == "streamable-http":
             return create_streamable_http_app(
                 server=self,
-                streamable_http_path=path or self.settings.streamable_http_path,
+                streamable_http_path=path
+                or self._deprecated_settings.streamable_http_path,
                 event_store=None,
                 auth=self.auth,
-                json_response=self.settings.json_response,
-                stateless_http=self.settings.stateless_http,
-                debug=self.settings.debug,
+                json_response=self._deprecated_settings.json_response,
+                stateless_http=self._deprecated_settings.stateless_http,
+                debug=self._deprecated_settings.debug,
                 middleware=middleware,
             )
         elif transport == "sse":
             return create_sse_app(
                 server=self,
-                message_path=self.settings.message_path,
-                sse_path=path or self.settings.sse_path,
+                message_path=self._deprecated_settings.message_path,
+                sse_path=path or self._deprecated_settings.sse_path,
                 auth=self.auth,
-                debug=self.settings.debug,
+                debug=self._deprecated_settings.debug,
                 middleware=middleware,
             )
 
@@ -1597,7 +1653,7 @@ def add_resource_prefix(
     # Get the server settings to check for legacy format preference
 
     if prefix_format is None:
-        prefix_format = fastmcp.settings.settings.resource_prefix_format
+        prefix_format = fastmcp.settings.resource_prefix_format
 
     if prefix_format == "protocol":
         # Legacy style: prefix+protocol://path
@@ -1646,7 +1702,7 @@ def remove_resource_prefix(
         return uri
 
     if prefix_format is None:
-        prefix_format = fastmcp.settings.settings.resource_prefix_format
+        prefix_format = fastmcp.settings.resource_prefix_format
 
     if prefix_format == "protocol":
         # Legacy style: prefix+protocol://path
@@ -1706,7 +1762,7 @@ def has_resource_prefix(
     # Get the server settings to check for legacy format preference
 
     if prefix_format is None:
-        prefix_format = fastmcp.settings.settings.resource_prefix_format
+        prefix_format = fastmcp.settings.resource_prefix_format
 
     if prefix_format == "protocol":
         # Legacy style: prefix+protocol://path
diff --git a/src/fastmcp/settings.py b/src/fastmcp/settings.py
index f39c82ff1..8fb7629ee 100644
--- a/src/fastmcp/settings.py
+++ b/src/fastmcp/settings.py
@@ -1,16 +1,47 @@
 from __future__ import annotations as _annotations
 
 import inspect
+import warnings
 from pathlib import Path
-from typing import Annotated, Literal
+from typing import Annotated, Any, Literal
 
 from pydantic import Field, model_validator
+from pydantic.fields import FieldInfo
 from pydantic_settings import (
     BaseSettings,
+    EnvSettingsSource,
+    PydanticBaseSettingsSource,
     SettingsConfigDict,
 )
 from typing_extensions import Self
 
+
+class ExtendedEnvSettingsSource(EnvSettingsSource):
+    def get_field_value(
+        self, field: FieldInfo, field_name: str
+    ) -> tuple[Any, str, bool]:
+        if prefixes := self.config.get("env_prefixes"):
+            for prefix in prefixes:
+                self.env_prefix = prefix
+                env_val, field_key, value_is_complex = super().get_field_value(
+                    field, field_name
+                )
+                if env_val is not None:
+                    if prefix == "FASTMCP_SERVER_":
+                        warnings.warn(
+                            "Using `FASTMCP_SERVER_` environment variables is deprecated. Use `FASTMCP_` instead.",
+                            DeprecationWarning,
+                            stacklevel=2,
+                        )
+                    return env_val, field_key, value_is_complex
+
+        return super().get_field_value(field, field_name)
+
+
+class ExtendedSettingsConfigDict(SettingsConfigDict, total=False):
+    env_prefixes: list[str] | None
+
+
 LOG_LEVEL = Literal["DEBUG", "INFO", "WARNING", "ERROR", "CRITICAL"]
 
 DuplicateBehavior = Literal["warn", "error", "replace", "ignore"]
@@ -19,14 +50,30 @@ DuplicateBehavior = Literal["warn", "error", "replace", "ignore"]
 class Settings(BaseSettings):
     """FastMCP settings."""
 
-    model_config = SettingsConfigDict(
-        env_prefix="FASTMCP_",
+    model_config = ExtendedSettingsConfigDict(
+        env_prefixes=["FASTMCP_", "FASTMCP_SERVER_"],
         env_file=".env",
         extra="ignore",
         env_nested_delimiter="__",
         nested_model_default_partial_update=True,
     )
 
+    @classmethod
+    def settings_customise_sources(
+        cls,
+        settings_cls: type[BaseSettings],
+        init_settings: PydanticBaseSettingsSource,
+        env_settings: PydanticBaseSettingsSource,
+        dotenv_settings: PydanticBaseSettingsSource,
+        file_secret_settings: PydanticBaseSettingsSource,
+    ) -> tuple[PydanticBaseSettingsSource, ...]:
+        return (
+            init_settings,
+            ExtendedEnvSettingsSource(settings_cls),
+            dotenv_settings,
+            file_secret_settings,
+        )
+
     home: Path = Path.home() / ".fastmcp"
 
     test_mode: bool = False
@@ -107,27 +154,6 @@ class Settings(BaseSettings):
 
         return self
 
-
-class ServerSettings(BaseSettings):
-    """FastMCP server settings.
-
-    All settings can be configured via environment variables with the prefix FASTMCP_.
-    For example, FASTMCP_DEBUG=true will set debug=True.
-    """
-
-    model_config = SettingsConfigDict(
-        env_prefix="FASTMCP_SERVER_",
-        env_file=".env",
-        extra="ignore",
-        env_nested_delimiter="__",
-        nested_model_default_partial_update=True,
-    )
-
-    log_level: Annotated[
-        LOG_LEVEL,
-        Field(default_factory=lambda: Settings().log_level),
-    ]
-
     # HTTP settings
     host: str = "127.0.0.1"
     port: int = 8000
@@ -136,15 +162,6 @@ class ServerSettings(BaseSettings):
     streamable_http_path: str = "/mcp"
     debug: bool = False
 
-    # resource settings
-    on_duplicate_resources: DuplicateBehavior = "warn"
-
-    # tool settings
-    on_duplicate_tools: DuplicateBehavior = "warn"
-
-    # prompt settings
-    on_duplicate_prompts: DuplicateBehavior = "warn"
-
     # error handling
     mask_error_details: Annotated[
         bool,
@@ -162,7 +179,7 @@ class ServerSettings(BaseSettings):
         ),
     ] = False
 
-    dependencies: Annotated[
+    server_dependencies: Annotated[
         list[str],
         Field(
             default_factory=list,
@@ -170,9 +187,6 @@ class ServerSettings(BaseSettings):
         ),
     ] = []
 
-    # cache settings (for getting attributes from servers, used to avoid repeated calls)
-    cache_expiration_seconds: float = 0
-
     # StreamableHTTP settings
     json_response: bool = False
     stateless_http: bool = (
@@ -197,6 +211,3 @@ class ServerSettings(BaseSettings):
             ),
         ),
     ] = None
-
-
-settings = Settings()
diff --git a/src/fastmcp/tools/tool.py b/src/fastmcp/tools/tool.py
index aaa7ff35a..d179be870 100644
--- a/src/fastmcp/tools/tool.py
+++ b/src/fastmcp/tools/tool.py
@@ -185,7 +185,7 @@ class FunctionTool(Tool):
         if context_kwarg and context_kwarg not in arguments:
             arguments[context_kwarg] = get_context()
 
-        if fastmcp.settings.settings.tool_attempt_parse_json_args:
+        if fastmcp.settings.tool_attempt_parse_json_args:
             # Pre-parse data from JSON in order to handle cases like `["a", "b", "c"]`
             # being passed in as JSON inside a string rather than an actual list.
             #
diff --git a/src/fastmcp/tools/tool_manager.py b/src/fastmcp/tools/tool_manager.py
index a05701a17..fe9eeb14c 100644
--- a/src/fastmcp/tools/tool_manager.py
+++ b/src/fastmcp/tools/tool_manager.py
@@ -6,6 +6,7 @@ from typing import TYPE_CHECKING, Any
 
 from mcp.types import EmbeddedResource, ImageContent, TextContent, ToolAnnotations
 
+from fastmcp import settings
 from fastmcp.exceptions import NotFoundError, ToolError
 from fastmcp.settings import DuplicateBehavior
 from fastmcp.tools.tool import Tool
@@ -23,10 +24,10 @@ class ToolManager:
     def __init__(
         self,
         duplicate_behavior: DuplicateBehavior | None = None,
-        mask_error_details: bool = False,
+        mask_error_details: bool | None = None,
     ):
         self._tools: dict[str, Tool] = {}
-        self.mask_error_details = mask_error_details
+        self.mask_error_details = mask_error_details or settings.mask_error_details
 
         # Default to "warn" if None is provided
         if duplicate_behavior is None:
diff --git a/src/fastmcp/utilities/exceptions.py b/src/fastmcp/utilities/exceptions.py
index e50dc57b0..a85bbafa7 100644
--- a/src/fastmcp/utilities/exceptions.py
+++ b/src/fastmcp/utilities/exceptions.py
@@ -43,7 +43,7 @@ def get_catch_handlers() -> Mapping[
     type[BaseException] | Iterable[type[BaseException]],
     Callable[[BaseExceptionGroup[Any]], Any],
 ]:
-    if fastmcp.settings.settings.client_raise_first_exceptiongroup_error:
+    if fastmcp.settings.client_raise_first_exceptiongroup_error:
         return _catch_handlers
     else:
         return {}
diff --git a/src/fastmcp/utilities/tests.py b/src/fastmcp/utilities/tests.py
index fd9e45945..9b0084fc1 100644
--- a/src/fastmcp/utilities/tests.py
+++ b/src/fastmcp/utilities/tests.py
@@ -10,7 +10,7 @@ from typing import TYPE_CHECKING, Any, Literal
 
 import uvicorn
 
-from fastmcp.settings import settings
+from fastmcp import settings
 from fastmcp.utilities.http import find_available_port
 
 if TYPE_CHECKING:
@@ -32,8 +32,8 @@ def temporary_settings(**kwargs: Any):
         from fastmcp.utilities.tests import temporary_settings
 
         with temporary_settings(log_level='DEBUG'):
-            assert fastmcp.settings.settings.log_level == 'DEBUG'
-        assert fastmcp.settings.settings.log_level == 'INFO'
+            assert fastmcp.settings.log_level == 'DEBUG'
+        assert fastmcp.settings.log_level == 'INFO'
         ```
     """
     old_settings = copy.deepcopy(settings.model_dump())
diff --git a/tests/auth/providers/test_bearer_env.py b/tests/auth/providers/test_bearer_env.py
index cadf7075a..5e56fc518 100644
--- a/tests/auth/providers/test_bearer_env.py
+++ b/tests/auth/providers/test_bearer_env.py
@@ -4,6 +4,8 @@ from pydantic import AnyHttpUrl, ValidationError
 from fastmcp import FastMCP
 from fastmcp.server.auth.providers.bearer import BearerAuthProvider
 from fastmcp.server.auth.providers.bearer_env import EnvBearerAuthProvider
+from fastmcp.settings import Settings
+from fastmcp.utilities.tests import temporary_settings
 
 
 def test_load_bearer_env_from_env_var(monkeypatch):
@@ -13,7 +15,8 @@ def test_load_bearer_env_from_env_var(monkeypatch):
     monkeypatch.setenv("FASTMCP_SERVER_DEFAULT_AUTH_PROVIDER", "bearer_env")
     monkeypatch.setenv("FASTMCP_AUTH_BEARER_PUBLIC_KEY", "test-public-key")
 
-    mcp_with_auth = FastMCP()
+    with temporary_settings(**Settings().model_dump()):
+        mcp_with_auth = FastMCP()
     assert isinstance(mcp_with_auth.auth, EnvBearerAuthProvider)
 
 
@@ -23,10 +26,11 @@ def test_load_bearer_env_from_env_var_requires_public_key_or_jwks_uri(monkeypatc
 
     monkeypatch.setenv("FASTMCP_SERVER_DEFAULT_AUTH_PROVIDER", "bearer_env")
 
-    with pytest.raises(
-        ValueError, match="Either public_key or jwks_uri must be provided"
-    ):
-        FastMCP()
+    with temporary_settings(**Settings().model_dump()):
+        with pytest.raises(
+            ValueError, match="Either public_key or jwks_uri must be provided"
+        ):
+            FastMCP()
 
 
 def test_configure_bearer_env_from_env_var(monkeypatch):
@@ -38,7 +42,8 @@ def test_configure_bearer_env_from_env_var(monkeypatch):
         "FASTMCP_AUTH_BEARER_REQUIRED_SCOPES", '["test-scope1", "test-scope2"]'
     )
 
-    mcp = FastMCP()
+    with temporary_settings(**Settings().model_dump()):
+        mcp = FastMCP()
     assert isinstance(mcp.auth, EnvBearerAuthProvider)
     assert mcp.auth.public_key == "test-public-key"
     assert mcp.auth.issuer_url == AnyHttpUrl("http://test-issuer")
@@ -50,17 +55,19 @@ def test_list_of_scopes_must_be_a_list(monkeypatch):
     monkeypatch.setenv("FASTMCP_SERVER_DEFAULT_AUTH_PROVIDER", "bearer_env")
     monkeypatch.setenv("FASTMCP_AUTH_BEARER_REQUIRED_SCOPES", "test-scope1")
 
-    with pytest.raises(ValidationError, match="Input should be a valid list"):
-        FastMCP()
+    with temporary_settings(**Settings().model_dump()):
+        with pytest.raises(ValidationError, match="Input should be a valid list"):
+            FastMCP()
 
 
 def test_configure_bearer_env_jwks_uri_from_env_var(monkeypatch):
     monkeypatch.setenv("FASTMCP_SERVER_DEFAULT_AUTH_PROVIDER", "bearer_env")
     monkeypatch.setenv("FASTMCP_AUTH_BEARER_JWKS_URI", "test-jwks-uri")
 
-    mcp = FastMCP()
-    assert isinstance(mcp.auth, EnvBearerAuthProvider)
-    assert mcp.auth.jwks_uri == "test-jwks-uri"
+    with temporary_settings(**Settings().model_dump()):
+        mcp = FastMCP()
+        assert isinstance(mcp.auth, EnvBearerAuthProvider)
+        assert mcp.auth.jwks_uri == "test-jwks-uri"
 
 
 def test_configure_bearer_env_public_key_and_jwks_uri_error(monkeypatch):
@@ -68,15 +75,17 @@ def test_configure_bearer_env_public_key_and_jwks_uri_error(monkeypatch):
     monkeypatch.setenv("FASTMCP_AUTH_BEARER_PUBLIC_KEY", "test-public-key")
     monkeypatch.setenv("FASTMCP_AUTH_BEARER_JWKS_URI", "test-jwks-uri")
 
-    with pytest.raises(ValueError, match="Provide either public_key or jwks_uri"):
-        FastMCP()
+    with temporary_settings(**Settings().model_dump()):
+        with pytest.raises(ValueError, match="Provide either public_key or jwks_uri"):
+            FastMCP()
 
 
 def test_provided_auth_takes_precedence_over_env_vars(monkeypatch):
     monkeypatch.setenv("FASTMCP_SERVER_DEFAULT_AUTH_PROVIDER", "bearer_env")
     monkeypatch.setenv("FASTMCP_AUTH_BEARER_PUBLIC_KEY", "test-public-key")
 
-    mcp = FastMCP(auth=BearerAuthProvider(public_key="test-public-key-2"))
-    assert isinstance(mcp.auth, BearerAuthProvider)
-    assert not isinstance(mcp.auth, EnvBearerAuthProvider)
-    assert mcp.auth.public_key == "test-public-key-2"
+    with temporary_settings(**Settings().model_dump()):
+        mcp = FastMCP(auth=BearerAuthProvider(public_key="test-public-key-2"))
+        assert isinstance(mcp.auth, BearerAuthProvider)
+        assert not isinstance(mcp.auth, EnvBearerAuthProvider)
+        assert mcp.auth.public_key == "test-public-key-2"
diff --git a/tests/deprecated/test_server_init_kwargs.py b/tests/deprecated/test_server_init_kwargs.py
new file mode 100644
index 000000000..92a02c6fd
--- /dev/null
+++ b/tests/deprecated/test_server_init_kwargs.py
@@ -0,0 +1,305 @@
+import warnings
+from unittest.mock import patch
+
+import pytest
+
+from fastmcp import FastMCP
+
+# reset deprecation warnings for this module
+pytestmark = pytest.mark.filterwarnings("default::DeprecationWarning")
+
+
+class TestDeprecatedServerInitKwargs:
+    """Test deprecated server initialization keyword arguments."""
+
+    def test_log_level_deprecation_warning(self):
+        """Test that log_level raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `log_level` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", log_level="DEBUG")
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.log_level == "DEBUG"
+
+    def test_debug_deprecation_warning(self):
+        """Test that debug raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `debug` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", debug=True)
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.debug is True
+
+    def test_host_deprecation_warning(self):
+        """Test that host raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `host` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", host="0.0.0.0")
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.host == "0.0.0.0"
+
+    def test_port_deprecation_warning(self):
+        """Test that port raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `port` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", port=8080)
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.port == 8080
+
+    def test_sse_path_deprecation_warning(self):
+        """Test that sse_path raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `sse_path` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", sse_path="/custom-sse")
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.sse_path == "/custom-sse"
+
+    def test_message_path_deprecation_warning(self):
+        """Test that message_path raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `message_path` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", message_path="/custom-message")
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.message_path == "/custom-message"
+
+    def test_streamable_http_path_deprecation_warning(self):
+        """Test that streamable_http_path raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `streamable_http_path` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", streamable_http_path="/custom-http")
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.streamable_http_path == "/custom-http"
+
+    def test_json_response_deprecation_warning(self):
+        """Test that json_response raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `json_response` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", json_response=True)
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.json_response is True
+
+    def test_stateless_http_deprecation_warning(self):
+        """Test that stateless_http raises a deprecation warning."""
+        with pytest.warns(
+            DeprecationWarning,
+            match=r"Providing `stateless_http` when creating a server is deprecated\. Provide it when calling `run` or as a global setting instead\.",
+        ):
+            server = FastMCP("TestServer", stateless_http=True)
+
+        # Verify the setting is still applied
+        assert server._deprecated_settings.stateless_http is True
+
+    def test_multiple_deprecated_kwargs_warnings(self):
+        """Test that multiple deprecated kwargs each raise their own warning."""
+        with warnings.catch_warnings(record=True) as recorded_warnings:
+            warnings.simplefilter("always")
+            server = FastMCP(
+                "TestServer",
+                log_level="INFO",
+                debug=False,
+                host="127.0.0.1",
+                port=9999,
+                sse_path="/sse",
+                message_path="/msg",
+                streamable_http_path="/http",
+                json_response=False,
+                stateless_http=False,
+            )
+
+        # Should have 9 deprecation warnings (one for each deprecated parameter)
+        deprecation_warnings = [
+            w for w in recorded_warnings if issubclass(w.category, DeprecationWarning)
+        ]
+        assert len(deprecation_warnings) == 9
+
+        # Verify all expected parameters are mentioned in warnings
+        expected_params = {
+            "log_level",
+            "debug",
+            "host",
+            "port",
+            "sse_path",
+            "message_path",
+            "streamable_http_path",
+            "json_response",
+            "stateless_http",
+        }
+        mentioned_params = set()
+        for warning in deprecation_warnings:
+            message = str(warning.message)
+            for param in expected_params:
+                if f"Providing `{param}`" in message:
+                    mentioned_params.add(param)
+
+        assert mentioned_params == expected_params
+
+        # Verify all settings are still applied
+        assert server._deprecated_settings.log_level == "INFO"
+        assert server._deprecated_settings.debug is False
+        assert server._deprecated_settings.host == "127.0.0.1"
+        assert server._deprecated_settings.port == 9999
+        assert server._deprecated_settings.sse_path == "/sse"
+        assert server._deprecated_settings.message_path == "/msg"
+        assert server._deprecated_settings.streamable_http_path == "/http"
+        assert server._deprecated_settings.json_response is False
+        assert server._deprecated_settings.stateless_http is False
+
+    def test_non_deprecated_kwargs_no_warnings(self):
+        """Test that non-deprecated kwargs don't raise warnings."""
+        with warnings.catch_warnings(record=True) as recorded_warnings:
+            warnings.simplefilter("always")
+            server = FastMCP(
+                name="TestServer",
+                instructions="Test instructions",
+                tags={"test", "server"},
+                cache_expiration_seconds=60.0,
+                on_duplicate_tools="warn",
+                on_duplicate_resources="error",
+                on_duplicate_prompts="replace",
+                resource_prefix_format="path",
+                mask_error_details=True,
+            )
+
+        # Should have no deprecation warnings
+        deprecation_warnings = [
+            w for w in recorded_warnings if issubclass(w.category, DeprecationWarning)
+        ]
+        assert len(deprecation_warnings) == 0
+
+        # Verify server was created successfully
+        assert server.name == "TestServer"
+        assert server.instructions == "Test instructions"
+        assert server.tags == {"test", "server"}
+
+    def test_none_values_no_warnings(self):
+        """Test that None values for deprecated kwargs don't raise warnings."""
+        with warnings.catch_warnings(record=True) as recorded_warnings:
+            warnings.simplefilter("always")
+            server = FastMCP(
+                "TestServer",
+                log_level=None,
+                debug=None,
+                host=None,
+                port=None,
+                sse_path=None,
+                message_path=None,
+                streamable_http_path=None,
+                json_response=None,
+                stateless_http=None,
+            )
+
+        # Should have no deprecation warnings for None values
+        deprecation_warnings = [
+            w for w in recorded_warnings if issubclass(w.category, DeprecationWarning)
+        ]
+        assert len(deprecation_warnings) == 0
+
+    def test_deprecated_settings_inheritance_from_global(self):
+        """Test that deprecated settings inherit from global settings when not provided."""
+        # Mock fastmcp.settings to test inheritance
+        with patch("fastmcp.settings") as mock_settings:
+            mock_settings.model_dump.return_value = {
+                "log_level": "WARNING",
+                "debug": True,
+                "host": "0.0.0.0",
+                "port": 3000,
+                "sse_path": "/events",
+                "message_path": "/messages",
+                "streamable_http_path": "/stream",
+                "json_response": True,
+                "stateless_http": True,
+            }
+
+            server = FastMCP("TestServer")
+
+            # Verify settings are inherited from global settings
+            assert server._deprecated_settings.log_level == "WARNING"
+            assert server._deprecated_settings.debug is True
+            assert server._deprecated_settings.host == "0.0.0.0"
+            assert server._deprecated_settings.port == 3000
+            assert server._deprecated_settings.sse_path == "/events"
+            assert server._deprecated_settings.message_path == "/messages"
+            assert server._deprecated_settings.streamable_http_path == "/stream"
+            assert server._deprecated_settings.json_response is True
+            assert server._deprecated_settings.stateless_http is True
+
+    def test_deprecated_settings_override_global(self):
+        """Test that deprecated settings override global settings when provided."""
+        # Mock fastmcp.settings to test override behavior
+        with patch("fastmcp.settings") as mock_settings:
+            mock_settings.model_dump.return_value = {
+                "log_level": "WARNING",
+                "debug": True,
+                "host": "0.0.0.0",
+                "port": 3000,
+                "sse_path": "/events",
+                "message_path": "/messages",
+                "streamable_http_path": "/stream",
+                "json_response": True,
+                "stateless_http": True,
+            }
+
+            with warnings.catch_warnings():
+                warnings.simplefilter("ignore")  # Ignore warnings for this test
+                server = FastMCP(
+                    "TestServer",
+                    log_level="ERROR",
+                    debug=False,
+                    host="127.0.0.1",
+                    port=8080,
+                )
+
+            # Verify provided settings override global settings
+            assert server._deprecated_settings.log_level == "ERROR"
+            assert server._deprecated_settings.debug is False
+            assert server._deprecated_settings.host == "127.0.0.1"
+            assert server._deprecated_settings.port == 8080
+            # Non-overridden settings should still come from global
+            assert server._deprecated_settings.sse_path == "/events"
+            assert server._deprecated_settings.message_path == "/messages"
+            assert server._deprecated_settings.streamable_http_path == "/stream"
+            assert server._deprecated_settings.json_response is True
+            assert server._deprecated_settings.stateless_http is True
+
+    def test_stacklevel_points_to_constructor_call(self):
+        """Test that deprecation warnings point to the FastMCP constructor call."""
+        with warnings.catch_warnings(record=True) as recorded_warnings:
+            warnings.simplefilter("always")
+
+            def create_server_with_deprecated_kwargs():
+                return FastMCP("TestServer", log_level="DEBUG")
+
+            server = create_server_with_deprecated_kwargs()
+
+        # Should have exactly one deprecation warning
+        deprecation_warnings = [
+            w for w in recorded_warnings if issubclass(w.category, DeprecationWarning)
+        ]
+        assert len(deprecation_warnings) == 1
+
+        # The warning should point to the server.py file where FastMCP.__init__ is called
+        # This verifies the stacklevel is working as intended (pointing to constructor)
+        warning = deprecation_warnings[0]
+        assert "server.py" in warning.filename
diff --git a/tests/utilities/test_tests.py b/tests/utilities/test_tests.py
index 104aaf9e6..6cbcc0dce 100644
--- a/tests/utilities/test_tests.py
+++ b/tests/utilities/test_tests.py
@@ -4,7 +4,7 @@ from fastmcp.utilities.tests import temporary_settings
 
 class TestTemporarySettings:
     def test_temporary_settings(self):
-        assert fastmcp.settings.settings.log_level == "DEBUG"
+        assert fastmcp.settings.log_level == "DEBUG"
         with temporary_settings(log_level="ERROR"):
-            assert fastmcp.settings.settings.log_level == "ERROR"
-        assert fastmcp.settings.settings.log_level == "DEBUG"
+            assert fastmcp.settings.log_level == "ERROR"
+        assert fastmcp.settings.log_level == "DEBUG"