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LM Studio runs local models and can also act as an MCP host. It supports remote MCP servers through an mcp.json file, edited from the Program tab and Perfai MCP is a remote server.
LM Studio’s own model is local and free to run — but tool-calling against an 18-tool MCP server needs a model that’s actually capable of structured tool use. Small quantized models can fail to respond at all.

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Get an API key

Perfai Cloud authenticates LM Studio with a Perfai API key. Create one and copy it — Perfai shows the full key only once. You’ll paste it into mcp.json as Bearer pfk_xxxxxxxxxxxx_....

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Installation

  1. Open LM Studio and go to Developer → Local Server.
  2. Click the Program tab.
  3. This opens (or lets you edit) mcp.json. Add the following:
  1. Save the file. LM Studio reconnects to configured MCP servers automatically.

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Verify the server is connected

  1. In the Program tab, check that perfai-cloud shows as connected with 19 tools listed.
  2. If it fails to connect, re-check that the Authorization header is Bearer followed by the full key, with no trailing whitespace. A 401 means the key has expired or been revoked — create a new one and update the config.
A successful connection here only means LM Studio can see the server’s tools — it doesn’t guarantee your local model can actually call them.

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Confirm you’re signed in

The API key signs you in — there is no separate login step. Every tool call runs as the user who created the key, with that user’s organizations and role. In LM Studio’s chat, type:
It answers with the key’s id (pfk_xxxxxxxxxxxx_…), never the secret. If a tool call fails with 401, the key has expired or been revoked — create a new one and update the connector.

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Register an app and run a scan

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Fix and verify