diff --git a/docs/docs/features/mcp-server.mdx b/docs/docs/features/mcp-server.mdx
index 3ac166f1f..0982bba17 100644
--- a/docs/docs/features/mcp-server.mdx
+++ b/docs/docs/features/mcp-server.mdx
@@ -241,6 +241,7 @@ Parameters:
 | `query`         | yes      | The query to ask about the codebase.                                                                                                           |
 | `repos`         | no       | The repositories that are accessible to the agent during the chat. If not provided, all repositories are accessible.                           |
 | `languageModel` | no       | The language model to use for answering the question. Object with `provider` and `model`. If not provided, defaults to the first model in the config. Use `list_language_models` to see available options. |
+| `visibility`    | no       | The visibility of the chat session (`'PRIVATE'` or `'PUBLIC'`). Defaults to `PRIVATE` for authenticated users and `PUBLIC` for anonymous users. Set to `PUBLIC` to make the chat viewable by anyone with the link (useful in shared environments like Slack). |
 
 
 ## Environment Variables
diff --git a/packages/mcp/CHANGELOG.md b/packages/mcp/CHANGELOG.md
index 3a91719bd..ecdb98ac8 100644
--- a/packages/mcp/CHANGELOG.md
+++ b/packages/mcp/CHANGELOG.md
@@ -11,6 +11,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Added optional `visibility` parameter to `ask_codebase` tool to allow controlling chat session visibility in shared environments. [#903](https://github.com/sourcebot-dev/sourcebot/pull/903)
 - Added `defaultBranch`, `isFork`, and `isArchived` fields to the `list_repos` tool response. [#905](https://github.com/sourcebot-dev/sourcebot/pull/905)
 
+### Changed
+- Changed `SOURCEBOT_HOST` to default to `http://localhost:3000` instead of `https://demo.sourcebot.dev`, which is now deprecated. [#906](https://github.com/sourcebot-dev/sourcebot/pull/906)
+
 ## [1.0.16] - 2026-02-10
 
 ### Added
diff --git a/packages/mcp/README.md b/packages/mcp/README.md
index c58620dae..ed5afbe49 100644
--- a/packages/mcp/README.md
+++ b/packages/mcp/README.md
@@ -276,6 +276,7 @@ Ask a natural language question about the codebase. This tool uses an AI agent t
 | `query`         | yes      | The query to ask about the codebase.                                                                                                           |
 | `repos`         | no       | The repositories that are accessible to the agent during the chat. If not provided, all repositories are accessible.                           |
 | `languageModel` | no       | The language model to use for answering the question. Object with `provider` and `model`. If not provided, defaults to the first model in the config. Use `list_language_models` to see available options. |
+| `visibility`    | no       | The visibility of the chat session (`'PRIVATE'` or `'PUBLIC'`). Defaults to `PRIVATE` for authenticated users and `PUBLIC` for anonymous users. Set to `PUBLIC` to make the chat viewable by anyone with the link (useful in shared environments like Slack). |
 
 </details>
 
diff --git a/packages/mcp/src/env.ts b/packages/mcp/src/env.ts
index d4cac622d..28d014f45 100644
--- a/packages/mcp/src/env.ts
+++ b/packages/mcp/src/env.ts
@@ -3,11 +3,11 @@ import { z } from "zod";
 
 export const numberSchema = z.coerce.number();
 
-const SOURCEBOT_DEMO_HOST = "https://demo.sourcebot.dev";
+const SOURCEBOT_DEFAULT_HOST = "http://localhost:3000";
 
 export const env = createEnv({
     server: {
-        SOURCEBOT_HOST: z.string().url().default(SOURCEBOT_DEMO_HOST),
+        SOURCEBOT_HOST: z.string().url().default(SOURCEBOT_DEFAULT_HOST),
 
         SOURCEBOT_API_KEY: z.string().optional(),