diff --git a/eng/common/mcp/azure-sdk-mcp.ps1 b/eng/common/mcp/azure-sdk-mcp.ps1
index b56fb4e96..af6f342a3 100755
--- a/eng/common/mcp/azure-sdk-mcp.ps1
+++ b/eng/common/mcp/azure-sdk-mcp.ps1
@@ -1,5 +1,8 @@
 #!/bin/env pwsh
 
+#Requires -Version 7.0
+#Requires -PSEdition Core
+
 param(
     [string]$FileName = 'Azure.Sdk.Tools.Cli',
     [string]$Package = 'azsdk',
@@ -9,21 +12,13 @@ param(
     [string]$RunDirectory = (Resolve-Path (Join-Path $PSScriptRoot .. .. ..)),
     [switch]$Run,
     [switch]$UpdateVsCodeConfig,
-    [switch]$Clean
+    [switch]$UpdatePathInProfile
 )
 
 $ErrorActionPreference = "Stop"
-
-if (-not $InstallDirectory)
-{
-    $homeDir = if ($env:HOME) { $env:HOME } else { $env:USERPROFILE }
-    $InstallDirectory = (Join-Path $homeDir ".azure-sdk-mcp" "azsdk")
-}
 . (Join-Path $PSScriptRoot '..' 'scripts' 'Helpers' 'AzSdkTool-Helpers.ps1')
 
-if ($Clean) {
-    Clear-Directory -Path $InstallDirectory
-}
+$toolInstallDirectory = $InstallDirectory ? $InstallDirectory : (Get-CommonInstallDirectory)
 
 if ($UpdateVsCodeConfig) {
     $vscodeConfigPath = Join-Path $PSScriptRoot ".." ".." ".." ".vscode" "mcp.json"
@@ -54,13 +49,30 @@ if ($UpdateVsCodeConfig) {
     $vscodeConfig | ConvertTo-Json -Depth 10 | Set-Content -Path $vscodeConfigPath -Force
 }
 
-$exe = Install-Standalone-Tool `
+# Install to a temp directory first so we don't dump out all the other
+# release zip contents to one of the users bin directories.
+$tmp = $env:TEMP ? $env:TEMP : [System.IO.Path]::GetTempPath()
+$guid = [System.Guid]::NewGuid()
+$tempInstallDirectory = Join-Path $tmp "azsdk-install-$($guid)"
+$tempExe = Install-Standalone-Tool `
     -Version $Version `
     -FileName $FileName `
     -Package $Package `
-    -Directory $InstallDirectory `
+    -Directory $tempInstallDirectory `
     -Repository $Repository
 
+Copy-Item -Path $tempExe -Destination $toolInstallDirectory -Force
+$exeName = Split-Path $tempExe -Leaf
+$exe = Join-Path $toolInstallDirectory $exeName
+
+Write-Host "Package $package is installed at $exe"
+if (!$UpdatePathInProfile) {
+    Write-Warning "To add the tool to PATH for new shell sessions, re-run with -UpdatePathInProfile to modify the shell profile file."
+} else {
+    Add-InstallDirectoryToPathInProfile -InstallDirectory $toolInstallDirectory
+    Write-Warning "'$exeName' will be available in PATH for new shell sessions."
+}
+
 if ($Run) {
     Start-Process -WorkingDirectory $RunDirectory -FilePath $exe -ArgumentList 'start' -NoNewWindow -Wait
 }
diff --git a/eng/common/scripts/Helpers/AzSdkTool-Helpers.ps1 b/eng/common/scripts/Helpers/AzSdkTool-Helpers.ps1
index 4fa981196..ed71854ec 100644
--- a/eng/common/scripts/Helpers/AzSdkTool-Helpers.ps1
+++ b/eng/common/scripts/Helpers/AzSdkTool-Helpers.ps1
@@ -192,3 +192,61 @@ function Install-Standalone-Tool (
 
     return $executable_path
 }
+
+function Get-CommonInstallDirectory {
+    $installDirectory = Join-Path $HOME "bin"
+    if (-not (Test-Path $installDirectory)) {
+        New-Item -ItemType Directory -Path $installDirectory -Force | Out-Null
+    }
+
+    # Update PATH in current session
+    if (-not ($env:PATH -like "*$InstallDirectory*")) {
+        $env:PATH += ";$InstallDirectory"
+    }
+
+    return $installDirectory
+}
+
+function Add-InstallDirectoryToPathInProfile(
+    [Parameter()]
+    [string]$InstallDirectory = (Get-CommonInstallDirectory)
+) {
+    $powershellProfilePath = $PROFILE
+    $bashrcPath = Join-Path $HOME ".bashrc"
+    $zshrcPath = Join-Path $HOME ".zshrc"
+    $markerComment = "  # azsdk install path"
+    $pathCommand = ""
+    $configFile = ""
+
+    if ($IsWindows) {  # expect powershell for windows, cmd.exe path update is not currently supported
+        $configFile = $powershellProfilePath
+        $pathCommand = "if (-not (`$env:PATH -like `'*$InstallDirectory*`')) { `$env:PATH += ';$InstallDirectory`' }" + $markerComment
+    }
+    elseif ($IsLinux) {  # handle bash or zsh shells for linux
+        if (Test-Path $zshrcPath) {
+            $configFile = $zshrcPath
+        }
+        else {
+            $configFile = $bashrcPath
+        }
+        $pathCommand = "export PATH=`"`$PATH:$InstallDirectory`"" + $markerComment
+    }
+    elseif ($IsMacOS) {  # mac os should use zsh by default
+        $configFile = $zshrcPath
+        $pathCommand = "export PATH=`"`$PATH:$InstallDirectory`"" + $markerComment
+    }
+    else {
+        throw "Unsupported platform"
+    }
+
+    if (-not (Test-Path $configFile)) {
+        New-Item -ItemType File -Path $configFile -Force | Out-Null
+    }
+
+    $configContent = Get-Content $configFile -Raw
+
+    if (!$configContent -or !$configContent.Contains($markerComment)) {
+        Write-Host "Adding installation to PATH in shell profile at '$configFile'"
+        Add-Content -Path $configFile -Value $pathCommand
+    }
+}
\ No newline at end of file