diff --git a/pkg/server/api/mcp/v1/schema.resolvers.go b/pkg/server/api/mcp/v1/schema.resolvers.go
index ba6e28449..1ec3daec0 100644
--- a/pkg/server/api/mcp/v1/schema.resolvers.go
+++ b/pkg/server/api/mcp/v1/schema.resolvers.go
@@ -76,7 +76,12 @@ func (r *Resolver) ListThirdPartiesTool(ctx context.Context, req *mcp.CallToolRe
 
 	cursor := types.NewCursor(input.Size, input.Cursor, pageOrderBy)
 
-	thirdPartyFilter := coredata.NewThirdPartyFilter(nil, input.Level, nil, nil, nil)
+	level := input.Level
+	if level == nil {
+		level = new(1)
+	}
+
+	thirdPartyFilter := coredata.NewThirdPartyFilter(nil, level, nil, nil, nil)
 
 	page, err := prb.ThirdParties.ListForOrganizationID(ctx, scope, input.OrganizationID, cursor, thirdPartyFilter)
 	if err != nil {
diff --git a/pkg/server/api/mcp/v1/specification.yaml b/pkg/server/api/mcp/v1/specification.yaml
index 53c928d75..97c3afea3 100644
--- a/pkg/server/api/mcp/v1/specification.yaml
+++ b/pkg/server/api/mcp/v1/specification.yaml
@@ -663,7 +663,7 @@ components:
           description: Organization ID
         level:
           type: integer
-          description: Filter by level
+          description: Filter by hierarchy depth (1 = direct third party, 2+ = third party of a third party / indirect). Defaults to 1 when omitted.
         order_by:
           $ref: "#/components/schemas/ThirdPartyOrderBy"
           description: ThirdParty order by
@@ -12606,7 +12606,7 @@ tools:
       $ref: "#/components/schemas/ListOrganizationsOutput"
   - name: listThirdParties
     title: List Third Parties
-    description: List all thirdParties for the organization
+    description: List thirdParties for the organization. By default only direct third parties (level 1) are returned; pass level to filter by hierarchy depth.
     hints:
       readonly: true
       destructive: false