diff --git a/packages/mcp/src/tools/computeProvisioner.test.ts b/packages/mcp/src/tools/computeProvisioner.test.ts
new file mode 100644
index 000000000..535f030d9
--- /dev/null
+++ b/packages/mcp/src/tools/computeProvisioner.test.ts
@@ -0,0 +1,66 @@
+import { describe, it, expect } from 'vitest';
+import { ComputeProvisionerTool } from './computeProvisioner.js';
+
+describe('ComputeProvisionerTool', () => {
+  const tool = new ComputeProvisionerTool();
+
+  it('should provide a valid MCP tool definition schema', () => {
+    const def = tool.getDefinition();
+    expect(def.name).toBe('sapiom_provision_compute');
+    expect(def.description).toContain('Provision on-demand cloud compute');
+    expect(def.inputSchema).toBeDefined();
+  });
+
+  it('should successfully provision compute when within budget', () => {
+    const res = tool.execute({
+      instanceType: 'cpu-large', // 0.20/h
+      maxDurationHours: 5,       // Total = 1.00
+      maxBudgetUsd: 2.00,
+      region: 'us-east-1',
+    });
+
+    expect(res.success).toBe(true);
+    expect(res.instanceId).toBeDefined();
+    expect(res.hourlyRateUsd).toBe(0.20);
+    expect(res.totalEstimatedCostUsd).toBe(1.00);
+  });
+
+  it('should reject provisioning when estimated cost exceeds max budget', () => {
+    const res = tool.execute({
+      instanceType: 'gpu-h100', // 3.50/h
+      maxDurationHours: 10,     // Total = 35.00
+      maxBudgetUsd: 15.00,
+      region: 'us-east-1',
+    });
+
+    expect(res.success).toBe(false);
+    expect(res.message).toContain('Budget exceeded');
+    expect(res.totalEstimatedCostUsd).toBe(35.00);
+  });
+
+  it('should handle MCP formatted tool calls successfully', () => {
+    const mcpResponse = tool.handleMcpCall({
+      instanceType: 'cpu-small',
+      maxDurationHours: 2,
+      maxBudgetUsd: 1.00,
+      region: 'eu-west-1',
+    });
+
+    expect(mcpResponse.isError).toBe(false);
+    expect(mcpResponse.content[0].type).toBe('text');
+    const parsedData = JSON.parse(mcpResponse.content[0].text);
+    expect(parsedData.success).toBe(true);
+  });
+
+  it('should return error response on invalid input parameters in MCP call', () => {
+    const mcpResponse = tool.handleMcpCall({
+      instanceType: 'invalid-gpu-type',
+      maxDurationHours: -1,
+      maxBudgetUsd: -5,
+    });
+
+    expect(mcpResponse.isError).toBe(true);
+    expect(mcpResponse.content[0].text).toContain('Validation error');
+  });
+});
+
diff --git a/packages/mcp/src/tools/computeProvisioner.ts b/packages/mcp/src/tools/computeProvisioner.ts
new file mode 100644
index 000000000..5d2f2f3dd
--- /dev/null
+++ b/packages/mcp/src/tools/computeProvisioner.ts
@@ -0,0 +1,136 @@
+/**
+ * Sapiom MCP Compute Provisioning Tool Adapter.
+ * Allows autonomous agents to provision cloud compute resources via Sapiom agentic rails.
+ */
+
+import { z } from 'zod';
+
+export const ProvisionComputeInputSchema = z.object({
+  instanceType: z.enum(['cpu-small', 'cpu-large', 'gpu-h100', 'gpu-a10g']),
+  region: z.string().default('us-east-1'),
+  maxDurationHours: z.number().min(1).max(72),
+  maxBudgetUsd: z.number().positive(),
+});
+
+export type ProvisionComputeInput = z.infer<typeof ProvisionComputeInputSchema>;
+
+export interface ProvisioningResult {
+  success: boolean;
+  instanceId?: string;
+  hourlyRateUsd?: number;
+  totalEstimatedCostUsd?: number;
+  message: string;
+}
+
+export interface McpToolDefinition {
+  name: string;
+  description: string;
+  inputSchema: Record<string, unknown>;
+}
+
+export class ComputeProvisionerTool {
+  public static readonly toolName = 'sapiom_provision_compute';
+  public static readonly toolDescription = 
+    'Provision on-demand cloud compute (CPU/GPU) with automatic budget caps and Sapiom micropayment rails.';
+
+  private hourlyRates: Record<string, number> = {
+    'cpu-small': 0.05,
+    'cpu-large': 0.20,
+    'gpu-a10g': 1.10,
+    'gpu-h100': 3.50,
+  };
+
+  /**
+   * Returns standard MCP Tool definition schema for LLM registration
+   */
+  public getDefinition(): McpToolDefinition {
+    return {
+      name: ComputeProvisionerTool.toolName,
+      description: ComputeProvisionerTool.toolDescription,
+      inputSchema: {
+        type: 'object',
+        properties: {
+          instanceType: {
+            type: 'string',
+            enum: ['cpu-small', 'cpu-large', 'gpu-h100', 'gpu-a10g'],
+            description: 'The type of compute instance needed.',
+          },
+          region: {
+            type: 'string',
+            default: 'us-east-1',
+            description: 'Cloud deployment region.',
+          },
+          maxDurationHours: {
+            type: 'number',
+            minimum: 1,
+            maximum: 72,
+            description: 'Maximum runtime allocation in hours.',
+          },
+          maxBudgetUsd: {
+            type: 'number',
+            description: 'Maximum USD budget allocated for this compute session.',
+          },
+        },
+        required: ['instanceType', 'maxDurationHours', 'maxBudgetUsd'],
+      },
+    };
+  }
+
+  /**
+   * Executes compute provisioning with runtime Zod validation and cost guardrails
+   */
+  public execute(input: ProvisionComputeInput): ProvisioningResult {
+    const parsed = ProvisionComputeInputSchema.parse(input);
+    const hourlyRate = this.hourlyRates[parsed.instanceType];
+    const estimatedTotal = Number((hourlyRate * parsed.maxDurationHours).toFixed(2));
+
+    if (estimatedTotal > parsed.maxBudgetUsd) {
+      return {
+        success: false,
+        totalEstimatedCostUsd: estimatedTotal,
+        message: `Budget exceeded: Required $${estimatedTotal.toFixed(2)} > Max Budget $${parsed.maxBudgetUsd.toFixed(2)}`,
+      };
+    }
+
+    const instanceId = `inst-${parsed.instanceType}-${Math.random().toString(36).substring(2, 9)}`;
+
+    return {
+      success: true,
+      instanceId,
+      hourlyRateUsd: hourlyRate,
+      totalEstimatedCostUsd: estimatedTotal,
+      message: `Successfully provisioned ${parsed.instanceType} in ${parsed.region} for up to ${parsed.maxDurationHours}h ($${estimatedTotal} total cap).`,
+    };
+  }
+
+  /**
+   * Handles direct MCP tool call response format
+   */
+  public handleMcpCall(args: unknown) {
+    try {
+      const parsed = ProvisionComputeInputSchema.parse(args);
+      const result = this.execute(parsed);
+      return {
+        content: [
+          {
+            type: 'text',
+            text: JSON.stringify(result, null, 2),
+          },
+        ],
+        isError: !result.success,
+      };
+    } catch (err: unknown) {
+      const errorMsg = err instanceof Error ? err.message : String(err);
+      return {
+        content: [
+          {
+            type: 'text',
+            text: `Validation error: ${errorMsg}`,
+          },
+        ],
+        isError: true,
+      };
+    }
+  }
+}
+