diff --git a/.env.example b/.env.example
index 363bc4a..affc21b 100644
--- a/.env.example
+++ b/.env.example
@@ -1,13 +1,29 @@
-# ── Frappe Connection ────────────────────────────────────────────────────────
-# URL of your Frappe Docker instance (VPS IP or domain)
-FRAPPE_URL=http://YOUR_VPS_IP:8000
+# ══════════════════════════════════════════════════════════════════════════════
+# DEPLOYMENT MODE
+# ══════════════════════════════════════════════════════════════════════════════
+#
+# SSE / VPS mode (hosted server — recommended):
+#   Frappe credentials are NOT stored here. Each user passes their own
+#   X-Frappe-URL, X-Frappe-API-Key, X-Frappe-API-Secret headers when connecting.
+#   Only set MCP_HOST, MCP_PORT, MCP_BEARER_TOKEN below.
+#
+# Local / stdio mode:
+#   Credentials are read from this file. Run: frappe-mcp (no --sse flag).
+#   Uncomment the Frappe Connection block below.
+#
+# ── SSE Server Settings (VPS hosting) ────────────────────────────────────────
+MCP_HOST=0.0.0.0
+MCP_PORT=8001
 
-# API credentials — generate in Frappe: Settings > My Profile > API Access
-FRAPPE_API_KEY=your_api_key_here
-FRAPPE_API_SECRET=your_api_secret_here
+# Shared access token — all users must send this as: Authorization: Bearer <token>
+# Generate with: python -c "import secrets; print(secrets.token_hex(32))"
+MCP_BEARER_TOKEN=change_this_to_a_strong_random_token
 
-# For multi-site Docker setups — the site name e.g. "site1.localhost"
-FRAPPE_SITE_NAME=
+# ── Frappe Connection (local/stdio mode only) ─────────────────────────────────
+# FRAPPE_URL=http://YOUR_VPS_IP:8000
+# FRAPPE_API_KEY=your_api_key_here
+# FRAPPE_API_SECRET=your_api_secret_here
+# FRAPPE_SITE_NAME=
 
 # ── Safety ───────────────────────────────────────────────────────────────────
 # Set to true to block ALL write/delete operations (read-only audit mode)
diff --git a/frappe_mcp/client/frappe_api.py b/frappe_mcp/client/frappe_api.py
index 9048468..5e96086 100644
--- a/frappe_mcp/client/frappe_api.py
+++ b/frappe_mcp/client/frappe_api.py
@@ -7,6 +7,7 @@ import json
 import httpx
 from typing import Any
 from frappe_mcp.config import get_settings
+from frappe_mcp.session import get_session
 
 
 class FrappeAPIError(Exception):
@@ -18,21 +19,37 @@ class FrappeAPIError(Exception):
 
 class FrappeClient:
     def __init__(self):
-        self.settings = get_settings()
-        self.base_url = self.settings.frappe_url
-        self._auth_header = self._build_auth_header()
+        session = get_session()
+        if session:
+            # SSE mode: credentials supplied per-connection via request headers
+            self.base_url = session.frappe_url.rstrip("/")
+            self._api_key = session.api_key
+            self._api_secret = session.api_secret
+            self._site_name = session.site_name
+            self.request_timeout = session.request_timeout
+        else:
+            # Stdio/local mode: credentials from .env
+            s = get_settings()
+            self.base_url = s.frappe_url
+            self._api_key = s.frappe_api_key
+            self._api_secret = s.frappe_api_secret
+            self._site_name = s.frappe_site_name
+            self.request_timeout = s.request_timeout
+
+        if not self._api_key or not self._api_secret:
+            raise FrappeAPIError(
+                "Frappe credentials not configured. "
+                "In SSE mode pass X-Frappe-URL, X-Frappe-API-Key, X-Frappe-API-Secret headers. "
+                "In local mode set FRAPPE_API_KEY and FRAPPE_API_SECRET in .env"
+            )
 
     def _build_auth_header(self) -> dict[str, str]:
-        key = self.settings.frappe_api_key
-        secret = self.settings.frappe_api_secret
-        if not key or not secret:
-            raise FrappeAPIError("FRAPPE_API_KEY and FRAPPE_API_SECRET must be set in .env")
-        return {"Authorization": f"token {key}:{secret}"}
+        return {"Authorization": f"token {self._api_key}:{self._api_secret}"}
 
     def _headers(self, extra: dict | None = None) -> dict[str, str]:
-        h = {**self._auth_header, "Content-Type": "application/json", "Accept": "application/json"}
-        if self.settings.frappe_site_name:
-            h["X-Frappe-Site-Name"] = self.settings.frappe_site_name
+        h = {**self._build_auth_header(), "Content-Type": "application/json", "Accept": "application/json"}
+        if self._site_name:
+            h["X-Frappe-Site-Name"] = self._site_name
         if extra:
             h.update(extra)
         return h
@@ -48,7 +65,7 @@ class FrappeClient:
             )
 
     async def get(self, path: str, params: dict | None = None) -> Any:
-        async with httpx.AsyncClient(timeout=self.settings.request_timeout) as client:
+        async with httpx.AsyncClient(timeout=self.request_timeout) as client:
             resp = await client.get(self._url(path), headers=self._headers(), params=params)
             resp.raise_for_status()
             data = resp.json()
@@ -87,7 +104,7 @@ class FrappeClient:
             resp.raise_for_status()
 
     async def post(self, path: str, payload: dict | None = None) -> Any:
-        async with httpx.AsyncClient(timeout=self.settings.request_timeout) as client:
+        async with httpx.AsyncClient(timeout=self.request_timeout) as client:
             resp = await client.post(self._url(path), headers=self._headers(), json=payload or {})
             self._handle_error_response(resp)
             data = resp.json()
@@ -95,7 +112,7 @@ class FrappeClient:
             return data.get("data", data)
 
     async def put(self, path: str, payload: dict | None = None) -> Any:
-        async with httpx.AsyncClient(timeout=self.settings.request_timeout) as client:
+        async with httpx.AsyncClient(timeout=self.request_timeout) as client:
             resp = await client.put(self._url(path), headers=self._headers(), json=payload or {})
             self._handle_error_response(resp)
             data = resp.json()
@@ -103,7 +120,7 @@ class FrappeClient:
             return data.get("data", data)
 
     async def delete(self, path: str) -> Any:
-        async with httpx.AsyncClient(timeout=self.settings.request_timeout) as client:
+        async with httpx.AsyncClient(timeout=self.request_timeout) as client:
             resp = await client.delete(self._url(path), headers=self._headers())
             resp.raise_for_status()
             data = resp.json()
diff --git a/frappe_mcp/server.py b/frappe_mcp/server.py
index e133397..b79e204 100644
--- a/frappe_mcp/server.py
+++ b/frappe_mcp/server.py
@@ -82,6 +82,27 @@ def _run_sse():
             auth = request.headers.get("Authorization", "")
             if auth != f"Bearer {bearer_token}":
                 return Response("Unauthorized", status_code=401)
+
+        # Extract per-user Frappe credentials from request headers
+        frappe_url = request.headers.get("X-Frappe-URL", "")
+        api_key = request.headers.get("X-Frappe-API-Key", "")
+        api_secret = request.headers.get("X-Frappe-API-Secret", "")
+        site_name = request.headers.get("X-Frappe-Site-Name", "")
+
+        if not frappe_url or not api_key or not api_secret:
+            return Response(
+                "Missing required headers: X-Frappe-URL, X-Frappe-API-Key, X-Frappe-API-Secret",
+                status_code=400,
+            )
+
+        from frappe_mcp.session import SessionConfig, set_session
+        set_session(SessionConfig(
+            frappe_url=frappe_url,
+            api_key=api_key,
+            api_secret=api_secret,
+            site_name=site_name,
+        ))
+
         async with sse.connect_sse(
             request.scope, request.receive, request._send
         ) as streams:
diff --git a/frappe_mcp/session.py b/frappe_mcp/session.py
new file mode 100644
index 0000000..767ed7a
--- /dev/null
+++ b/frappe_mcp/session.py
@@ -0,0 +1,29 @@
+"""
+Per-connection session config using Python contextvars.
+Each SSE connection sets its own Frappe credentials, isolated from other users.
+Falls back to .env values if no per-session config is set (local stdio mode).
+"""
+
+from contextvars import ContextVar
+from dataclasses import dataclass
+
+
+@dataclass
+class SessionConfig:
+    frappe_url: str
+    api_key: str
+    api_secret: str
+    site_name: str = ""
+    read_only_mode: bool = False
+    request_timeout: int = 30
+
+
+_session: ContextVar[SessionConfig | None] = ContextVar("frappe_session", default=None)
+
+
+def set_session(config: SessionConfig) -> None:
+    _session.set(config)
+
+
+def get_session() -> SessionConfig | None:
+    return _session.get()