diff --git a/.changeset/default-json-schema-dialect-2020-12.md b/.changeset/default-json-schema-dialect-2020-12.md
new file mode 100644
index 0000000000..6b2d68f8ea
--- /dev/null
+++ b/.changeset/default-json-schema-dialect-2020-12.md
@@ -0,0 +1,6 @@
+---
+'@modelcontextprotocol/sdk': patch
+---
+
+Default the Zod v4 JSON Schema conversion target to `draft-2020-12` instead of `draft-7`, so generated `inputSchema`/`outputSchema` declare `https://json-schema.org/draft/2020-12/schema`. The unrecognised-target fallback now agrees with that default instead of returning
+`draft-7`. This matches the dialect the spec documents for `Tool.outputSchema`, Zod v4's own `toJSONSchema` default, and the v2 SDK. Passing an explicit `target` (including `'draft-7'`) is unchanged.
diff --git a/src/server/zod-json-schema-compat.ts b/src/server/zod-json-schema-compat.ts
index cde66b1772..587119651d 100644
--- a/src/server/zod-json-schema-compat.ts
+++ b/src/server/zod-json-schema-compat.ts
@@ -22,10 +22,10 @@ type CommonOpts = {
 };
 
 function mapMiniTarget(t: CommonOpts['target'] | undefined): 'draft-7' | 'draft-2020-12' {
-    if (!t) return 'draft-7';
+    if (!t) return 'draft-2020-12';
     if (t === 'jsonSchema7' || t === 'draft-7') return 'draft-7';
     if (t === 'jsonSchema2019-09' || t === 'draft-2020-12') return 'draft-2020-12';
-    return 'draft-7'; // fallback
+    return 'draft-2020-12'; // fallback
 }
 
 export function toJsonSchemaCompat(schema: AnyObjectSchema, opts?: CommonOpts): JsonSchema {
diff --git a/test/server/zod-json-schema-compat.test.ts b/test/server/zod-json-schema-compat.test.ts
new file mode 100644
index 0000000000..9d10f2d836
--- /dev/null
+++ b/test/server/zod-json-schema-compat.test.ts
@@ -0,0 +1,80 @@
+import { describe, expect, it } from 'vitest';
+import * as z3 from 'zod/v3';
+import * as z4 from 'zod/v4';
+
+import { Client } from '../../src/client/index.js';
+import { InMemoryTransport } from '../../src/inMemory.js';
+import { McpServer } from '../../src/server/mcp.js';
+import { toJsonSchemaCompat } from '../../src/server/zod-json-schema-compat.js';
+import { ListToolsResultSchema } from '../../src/types.js';
+
+const DRAFT_2020_12 = 'https://json-schema.org/draft/2020-12/schema';
+const DRAFT_07 = 'http://json-schema.org/draft-07/schema#';
+
+describe('toJsonSchemaCompat dialect selection (Zod v4)', () => {
+    const schema = z4.object({ value: z4.string() });
+
+    it('defaults to JSON Schema 2020-12 when no target is given', () => {
+        // Tool.outputSchema in spec.types.ts states it "Defaults to JSON Schema
+        // 2020-12 when no explicit $schema is provided", and Zod v4's own
+        // toJSONSchema default target is draft-2020-12.
+        expect(toJsonSchemaCompat(schema)['$schema']).toBe(DRAFT_2020_12);
+    });
+
+    it('still honours an explicit draft-7 target', () => {
+        expect(toJsonSchemaCompat(schema, { target: 'draft-7' })['$schema']).toBe(DRAFT_07);
+        expect(toJsonSchemaCompat(schema, { target: 'jsonSchema7' })['$schema']).toBe(DRAFT_07);
+    });
+
+    it('honours an explicit 2020-12 target', () => {
+        expect(toJsonSchemaCompat(schema, { target: 'draft-2020-12' })['$schema']).toBe(DRAFT_2020_12);
+        expect(toJsonSchemaCompat(schema, { target: 'jsonSchema2019-09' })['$schema']).toBe(DRAFT_2020_12);
+    });
+
+    it('falls back to 2020-12 for an unrecognised target', () => {
+        // Unreachable through the CommonOpts type, but reachable from JavaScript
+        // callers; the fallback should agree with the documented default rather
+        // than silently downgrading the dialect.
+        const opts = { target: 'openApi3' } as unknown as Parameters<typeof toJsonSchemaCompat>[1];
+        expect(toJsonSchemaCompat(schema, opts)['$schema']).toBe(DRAFT_2020_12);
+    });
+});
+
+describe('toJsonSchemaCompat dialect selection (Zod v3)', () => {
+    it('remains on draft-07, which the vendored converter cannot change', () => {
+        // The v3 branch delegates to zod-to-json-schema, whose targets are
+        // jsonSchema7 / jsonSchema2019-09 / openApi3 — it has no 2020-12 target.
+        // Documented here so the v3/v4 asymmetry is intentional and visible.
+        const schema = z3.object({ value: z3.string() });
+        expect(toJsonSchemaCompat(schema)['$schema']).toBe(DRAFT_07);
+    });
+});
+
+describe('tools/list declared dialect', () => {
+    it('advertises 2020-12 for inputSchema and outputSchema built from Zod v4', async () => {
+        const mcpServer = new McpServer({ name: 'test server', version: '1.0' });
+
+        mcpServer.registerTool(
+            'echo',
+            {
+                description: 'Echoes its input',
+                inputSchema: { value: z4.string() },
+                outputSchema: { value: z4.string() }
+            },
+            async ({ value }) => ({
+                content: [{ type: 'text', text: value as string }],
+                structuredContent: { value }
+            })
+        );
+
+        const client = new Client({ name: 'test client', version: '1.0' });
+        const [clientTransport, serverTransport] = InMemoryTransport.createLinkedPair();
+        await Promise.all([client.connect(clientTransport), mcpServer.connect(serverTransport)]);
+
+        const result = await client.request({ method: 'tools/list' }, ListToolsResultSchema);
+
+        expect(result.tools).toHaveLength(1);
+        expect(result.tools[0].inputSchema.$schema).toBe(DRAFT_2020_12);
+        expect(result.tools[0].outputSchema?.$schema).toBe(DRAFT_2020_12);
+    });
+});