diff --git a/hud/environment/connection.py b/hud/environment/connection.py
index 2fde077bd..060eeec01 100644
--- a/hud/environment/connection.py
+++ b/hud/environment/connection.py
@@ -159,6 +159,9 @@ async def connect(self) -> None:
             "transport": self._transport,
             "auth": self._auth,
         }
+        client_timeout = getattr(self._transport, "_hud_client_timeout", None)
+        if client_timeout is not None:
+            client_kwargs["timeout"] = client_timeout
         if self._elicitation_handler is not None:
             client_kwargs["elicitation_handler"] = self._elicitation_handler
 
diff --git a/hud/environment/connectors/mcp_config.py b/hud/environment/connectors/mcp_config.py
index 048186742..4d73c71c0 100644
--- a/hud/environment/connectors/mcp_config.py
+++ b/hud/environment/connectors/mcp_config.py
@@ -2,7 +2,7 @@
 
 from __future__ import annotations
 
-from typing import TYPE_CHECKING, Any
+from typing import TYPE_CHECKING, Any, cast
 
 from hud.environment.connectors.base import BaseConnectorMixin
 
@@ -66,8 +66,7 @@ def connect_mcp(
                 if settings.client_timeout > 0
                 else min(request_timeout, settings.__class__.model_fields["client_timeout"].default)
             )
-            server_config.setdefault("sse_read_timeout", timeout)
-            transport = _build_transport(server_config)
+            transport = _build_transport(server_config, timeout=timeout)
 
         return self._add_connection(
             name,
@@ -121,17 +120,29 @@ def connect_mcp_config(
         return self
 
 
-def _build_transport(server_config: dict[str, Any]) -> Any:
+def _build_transport(server_config: dict[str, Any], *, timeout: float | None = None) -> Any:
     from fastmcp.client.transports import SSETransport, StreamableHttpTransport
     from fastmcp.mcp_config import infer_transport_type_from_url
 
     url = server_config["url"]
     transport_type = server_config.get("transport") or infer_transport_type_from_url(url)
-    transport_cls = SSETransport if transport_type == "sse" else StreamableHttpTransport
-
-    return transport_cls(
-        url=url,
-        headers=server_config.get("headers"),
-        auth=server_config.get("auth"),
-        sse_read_timeout=server_config.get("sse_read_timeout"),
-    )
+    transport_timeout = timeout if timeout is not None else server_config.get("sse_read_timeout")
+    transport_kwargs = {
+        "url": url,
+        "headers": server_config.get("headers"),
+        "auth": server_config.get("auth"),
+        "httpx_client_factory": server_config.get("httpx_client_factory"),
+    }
+
+    if transport_type == "sse":
+        return SSETransport(
+            **transport_kwargs,
+            sse_read_timeout=transport_timeout,
+        )
+
+    transport = StreamableHttpTransport(**transport_kwargs)
+    if transport_timeout is not None:
+        # FastMCP 3.x wants streamable HTTP timeouts on the client/session,
+        # not on the transport constructor.
+        cast("Any", transport)._hud_client_timeout = transport_timeout
+    return transport
diff --git a/hud/environment/tests/test_connection.py b/hud/environment/tests/test_connection.py
index 9ecd9114c..139759043 100644
--- a/hud/environment/tests/test_connection.py
+++ b/hud/environment/tests/test_connection.py
@@ -140,6 +140,35 @@ async def test_connect_creates_client(self) -> None:
             # Client is now set
             assert connector.client is mock_client
 
+    @pytest.mark.asyncio
+    async def test_connect_passes_transport_timeout_to_client(self) -> None:
+        """connect() forwards transport timeout to FastMCP client session kwargs."""
+
+        class Transport:
+            _hud_client_timeout = 300
+
+        transport = Transport()
+        connector = Connector(
+            transport=transport,
+            config=ConnectionConfig(),
+            name="test",
+            connection_type=ConnectionType.REMOTE,
+            auth="test-token",
+        )
+
+        mock_client = MagicMock()
+        mock_client.__aenter__ = AsyncMock(return_value=mock_client)
+        mock_client.is_connected = MagicMock(return_value=True)
+
+        with patch("fastmcp.client.Client", return_value=mock_client) as mock_cls:
+            await connector.connect()
+
+            mock_cls.assert_called_once_with(
+                transport=transport,
+                auth="test-token",
+                timeout=300,
+            )
+
     @pytest.mark.asyncio
     async def test_disconnect_clears_client(self) -> None:
         """disconnect() closes client and clears state."""
diff --git a/hud/environment/tests/test_connectors.py b/hud/environment/tests/test_connectors.py
index a0e018cef..6ecabc144 100644
--- a/hud/environment/tests/test_connectors.py
+++ b/hud/environment/tests/test_connectors.py
@@ -197,7 +197,7 @@ def mount(self, server: Any, *, prefix: str | None = None) -> None:
         env = TestEnv()
         with patch("hud.settings.settings", spec=Settings) as mock_settings:
             mock_settings.hud_mcp_url = "https://mcp.hud.ai"
-            mock_settings.client_timeout = 300  # Used in connect_mcp for sse_read_timeout
+            mock_settings.client_timeout = 300  # Used in connect_mcp transport timeout logic
 
             env.connect_hub("browser")
 
@@ -205,3 +205,45 @@ def mount(self, server: Any, *, prefix: str | None = None) -> None:
         assert "hud" in env._connections
         # Verify hub config is stored for serialization
         assert env._hub_config == {"name": "browser"}
+
+    def test_connect_mcp_streamable_transport_uses_client_timeout(self) -> None:
+        """Streamable HTTP uses FastMCP client timeout instead of deprecated transport arg."""
+        from fastmcp.client.transports import StreamableHttpTransport
+
+        from hud.environment.connectors.mcp_config import MCPConfigConnectorMixin
+        from hud.settings import Settings
+
+        class TestEnv(MCPConfigConnectorMixin):
+            def __init__(self) -> None:
+                self._connections: dict[str, Connector] = {}
+
+        env = TestEnv()
+        with patch("hud.settings.settings", spec=Settings) as mock_settings:
+            mock_settings.client_timeout = 300
+            env.connect_mcp({"browser": {"url": "https://mcp.hud.ai/browser"}})
+
+        transport = env._connections["browser"]._transport
+        assert isinstance(transport, StreamableHttpTransport)
+        assert transport.sse_read_timeout is None
+        assert getattr(transport, "_hud_client_timeout", None) == 300
+
+    def test_connect_mcp_sse_transport_keeps_sse_timeout(self) -> None:
+        """SSE transports should continue to receive sse_read_timeout directly."""
+        from fastmcp.client.transports import SSETransport
+
+        from hud.environment.connectors.mcp_config import MCPConfigConnectorMixin
+        from hud.settings import Settings
+
+        class TestEnv(MCPConfigConnectorMixin):
+            def __init__(self) -> None:
+                self._connections: dict[str, Connector] = {}
+
+        env = TestEnv()
+        with patch("hud.settings.settings", spec=Settings) as mock_settings:
+            mock_settings.client_timeout = 300
+            env.connect_mcp({"browser": {"url": "https://mcp.hud.ai/browser", "transport": "sse"}})
+
+        transport = env._connections["browser"]._transport
+        assert isinstance(transport, SSETransport)
+        assert transport.sse_read_timeout is not None
+        assert transport.sse_read_timeout.total_seconds() == 300