diff --git a/actions/setup/js/mcp_server_core.cjs b/actions/setup/js/mcp_server_core.cjs
index e41b6c20674..dd8f6dd9b06 100644
--- a/actions/setup/js/mcp_server_core.cjs
+++ b/actions/setup/js/mcp_server_core.cjs
@@ -466,6 +466,69 @@ function registerTool(server, tool) {
   server.debug(`Registered tool: ${normalizedName}`);
 }
 
+/**
+ * Calculate Levenshtein distance between two strings
+ * @param {string} a - First string
+ * @param {string} b - Second string
+ * @returns {number} Edit distance
+ */
+function levenshteinDistance(a, b) {
+  const matrix = [];
+
+  // Initialize first column
+  for (let i = 0; i <= b.length; i++) {
+    matrix[i] = [i];
+  }
+
+  // Initialize first row
+  for (let j = 0; j <= a.length; j++) {
+    matrix[0][j] = j;
+  }
+
+  // Fill in the rest of the matrix
+  for (let i = 1; i <= b.length; i++) {
+    for (let j = 1; j <= a.length; j++) {
+      if (b.charAt(i - 1) === a.charAt(j - 1)) {
+        matrix[i][j] = matrix[i - 1][j - 1];
+      } else {
+        matrix[i][j] = Math.min(
+          matrix[i - 1][j - 1] + 1, // substitution
+          matrix[i][j - 1] + 1, // insertion
+          matrix[i - 1][j] + 1 // deletion
+        );
+      }
+    }
+  }
+
+  return matrix[b.length][a.length];
+}
+
+/**
+ * Find similar tool names from available tools
+ * @param {string} requestedTool - The tool name that was requested
+ * @param {Object} availableTools - Object of available tools
+ * @param {number} maxSuggestions - Maximum number of suggestions to return
+ * @returns {Array<{name: string, distance: number}>} Array of similar tool names with distances
+ */
+function findSimilarTools(requestedTool, availableTools, maxSuggestions = 3) {
+  const normalizedRequested = normalizeTool(requestedTool);
+  const suggestions = [];
+
+  // Calculate distance for each available tool
+  for (const toolName of Object.keys(availableTools)) {
+    const distance = levenshteinDistance(normalizedRequested, toolName);
+    suggestions.push({ name: toolName, distance });
+  }
+
+  // Sort by distance (closest first) and take top N
+  suggestions.sort((a, b) => a.distance - b.distance);
+
+  // Only return suggestions that are reasonably similar
+  // (distance <= half the length of the requested tool name + 3)
+  const maxDistance = Math.floor(normalizedRequested.length / 2) + 3;
+  return suggestions.filter(s => s.distance <= maxDistance).slice(0, maxSuggestions);
+}
+
 /**
  * Normalize a tool name (convert dashes to underscores, lowercase)
  * @param {string} name - The tool name to normalize
@@ -530,9 +593,18 @@ async function handleRequest(server, request, defaultHandler) {
       }
       const tool = server.tools[normalizeTool(name)];
       if (!tool) {
+        // Find similar tools to suggest
+        const similarTools = findSimilarTools(name, server.tools);
+        let errorMessage = `Tool '${name}' not found`;
+
+        if (similarTools.length > 0) {
+          const suggestions = similarTools.map(s => s.name).join(", ");
+          errorMessage += `. Did you mean one of these: ${suggestions}?`;
+        }
+
         throw {
           code: -32602,
-          message: `Tool '${name}' not found`,
+          message: errorMessage,
         };
       }
 
@@ -649,7 +721,16 @@ async function handleMessage(server, req, defaultHandler) {
       }
       const tool = server.tools[normalizeTool(name)];
       if (!tool) {
-        server.replyError(id, -32601, `Tool not found: ${name} (${normalizeTool(name)})`);
+        // Find similar tools to suggest
+        const similarTools = findSimilarTools(name, server.tools);
+        let errorMessage = `Tool not found: ${name} (${normalizeTool(name)})`;
+
+        if (similarTools.length > 0) {
+          const suggestions = similarTools.map(s => s.name).join(", ");
+          errorMessage += `. Did you mean one of these: ${suggestions}?`;
+        }
+
+        server.replyError(id, -32601, errorMessage);
         return;
       }
 
@@ -744,4 +825,6 @@ module.exports = {
   processReadBuffer,
   start,
   loadToolHandlers,
+  findSimilarTools,
+  levenshteinDistance,
 };
diff --git a/actions/setup/js/mcp_server_core.test.cjs b/actions/setup/js/mcp_server_core.test.cjs
index 8430565909c..0fe25fc0ffd 100644
--- a/actions/setup/js/mcp_server_core.test.cjs
+++ b/actions/setup/js/mcp_server_core.test.cjs
@@ -905,4 +905,165 @@ echo "result=$INPUT_MY_INPUT" >> $GITHUB_OUTPUT
       expect(resultContent.outputs.result).toBe("test-value");
     });
   });
+
+  describe("levenshteinDistance", () => {
+    it("should calculate correct distance for identical strings", async () => {
+      const { levenshteinDistance } = await import("./mcp_server_core.cjs");
+      expect(levenshteinDistance("test", "test")).toBe(0);
+    });
+
+    it("should calculate correct distance for single character change", async () => {
+      const { levenshteinDistance } = await import("./mcp_server_core.cjs");
+      expect(levenshteinDistance("cat", "bat")).toBe(1);
+      expect(levenshteinDistance("cat", "cut")).toBe(1);
+    });
+
+    it("should calculate correct distance for insertions/deletions", async () => {
+      const { levenshteinDistance } = await import("./mcp_server_core.cjs");
+      expect(levenshteinDistance("cat", "ca")).toBe(1);
+      expect(levenshteinDistance("cat", "cats")).toBe(1);
+    });
+
+    it("should calculate correct distance for multiple changes", async () => {
+      const { levenshteinDistance } = await import("./mcp_server_core.cjs");
+      expect(levenshteinDistance("cat", "dog")).toBe(3);
+    });
+  });
+
+  describe("findSimilarTools", () => {
+    it("should find tools with typos", async () => {
+      const { findSimilarTools } = await import("./mcp_server_core.cjs");
+      const tools = {
+        add_comment: {},
+        add_name: {},
+        missing_tool: {},
+      };
+
+      const similar = findSimilarTools("add_comentt", tools, 3);
+      expect(similar.length).toBeGreaterThan(0);
+      expect(similar[0].name).toBe("add_comment");
+      expect(similar[0].distance).toBeLessThanOrEqual(2);
+    });
+
+    it("should find tools with dashes normalized", async () => {
+      const { findSimilarTools } = await import("./mcp_server_core.cjs");
+      const tools = {
+        dispatch_workflow: {},
+        add_comment: {},
+      };
+
+      const similar = findSimilarTools("dispatch-workflow", tools, 3);
+      expect(similar.length).toBeGreaterThan(0);
+      expect(similar[0].name).toBe("dispatch_workflow");
+      expect(similar[0].distance).toBe(0); // Should match exactly after normalization
+    });
+
+    it("should return empty array for completely different names", async () => {
+      const { findSimilarTools } = await import("./mcp_server_core.cjs");
+      const tools = {
+        short: {},
+      };
+
+      const similar = findSimilarTools("verylongdifferenttoolname", tools, 3);
+      expect(similar.length).toBe(0); // Distance too large
+    });
+
+    it("should limit results to maxSuggestions", async () => {
+      const { findSimilarTools } = await import("./mcp_server_core.cjs");
+      const tools = {
+        tool_a: {},
+        tool_b: {},
+        tool_c: {},
+        tool_d: {},
+        tool_e: {},
+      };
+
+      const similar = findSimilarTools("tool_x", tools, 2);
+      expect(similar.length).toBeLessThanOrEqual(2);
+    });
+
+    it("should sort by distance (closest first)", async () => {
+      const { findSimilarTools } = await import("./mcp_server_core.cjs");
+      const tools = {
+        add_name: {},
+        add_comment: {},
+        missing_tool: {},
+      };
+
+      const similar = findSimilarTools("add_nam", tools, 3);
+      expect(similar.length).toBeGreaterThan(0);
+      expect(similar[0].name).toBe("add_name");
+      expect(similar[0].distance).toBe(1);
+    });
+  });
+
+  describe("tool not found error with suggestions", () => {
+    it("should suggest similar tools when tool is not found", async () => {
+      const { createServer, registerTool, handleMessage } = await import("./mcp_server_core.cjs");
+      const server = createServer({ name: "test-server", version: "1.0.0" });
+
+      // Register some tools
+      registerTool(server, {
+        name: "add_comment",
+        description: "Add comment",
+        inputSchema: { type: "object", properties: {} },
+        handler: () => ({ content: [{ type: "text", text: "ok" }] }),
+      });
+      registerTool(server, {
+        name: "add_name",
+        description: "Add name",
+        inputSchema: { type: "object", properties: {} },
+        handler: () => ({ content: [{ type: "text", text: "ok" }] }),
+      });
+
+      const results = [];
+      server.writeMessage = msg => results.push(msg);
+      server.replyResult = (id, result) => results.push({ jsonrpc: "2.0", id, result });
+      server.replyError = (id, code, message) => results.push({ jsonrpc: "2.0", id, error: { code, message } });
+
+      // Try to call a tool that doesn't exist but is similar
+      await handleMessage(server, {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: { name: "add_comentt", arguments: {} },
+      });
+
+      expect(results).toHaveLength(1);
+      expect(results[0].error).toBeDefined();
+      expect(results[0].error.message).toContain("not found");
+      expect(results[0].error.message).toContain("Did you mean one of these");
+      expect(results[0].error.message).toContain("add_comment");
+    });
+
+    it("should not suggest tools if none are similar", async () => {
+      const { createServer, registerTool, handleMessage } = await import("./mcp_server_core.cjs");
+      const server = createServer({ name: "test-server", version: "1.0.0" });
+
+      registerTool(server, {
+        name: "x",
+        description: "Test",
+        inputSchema: { type: "object", properties: {} },
+        handler: () => ({ content: [{ type: "text", text: "ok" }] }),
+      });
+
+      const results = [];
+      server.writeMessage = msg => results.push(msg);
+      server.replyResult = (id, result) => results.push({ jsonrpc: "2.0", id, result });
+      server.replyError = (id, code, message) => results.push({ jsonrpc: "2.0", id, error: { code, message } });
+
+      // Try to call a completely different tool
+      await handleMessage(server, {
+        jsonrpc: "2.0",
+        id: 1,
+        method: "tools/call",
+        params: { name: "completelydifferenttoolname", arguments: {} },
+      });
+
+      expect(results).toHaveLength(1);
+      expect(results[0].error).toBeDefined();
+      expect(results[0].error.message).toContain("not found");
+      expect(results[0].error.message).not.toContain("Did you mean");
+    });
+  });
 });
diff --git a/actions/setup/js/safe_outputs_tools_loader.cjs b/actions/setup/js/safe_outputs_tools_loader.cjs
index 02d8f6e7896..5d5af915382 100644
--- a/actions/setup/js/safe_outputs_tools_loader.cjs
+++ b/actions/setup/js/safe_outputs_tools_loader.cjs
@@ -27,6 +27,16 @@ function loadTools(server) {
     server.debug(`Tools file read successfully, attempting to parse JSON`);
     const tools = JSON.parse(toolsFileContent);
     server.debug(`Successfully parsed ${tools.length} tools from file`);
+
+    // Log details about dispatch_workflow tools for debugging
+    const dispatchWorkflowTools = tools.filter(t => t._workflow_name);
+    if (dispatchWorkflowTools.length > 0) {
+      server.debug(`  Found ${dispatchWorkflowTools.length} dispatch_workflow tools:`);
+      dispatchWorkflowTools.forEach(t => {
+        server.debug(`    - ${t.name} (workflow: ${t._workflow_name})`);
+      });
+    }
+
     return tools;
   } catch (error) {
     server.debug(`Error reading tools file: ${getErrorMessage(error)}`);
@@ -94,9 +104,19 @@ function registerPredefinedTools(server, tools, config, registerTool, normalizeT
 
     // Check if this is a dispatch_workflow tool (has _workflow_name metadata)
     // These tools are dynamically generated with workflow-specific names
-    if (tool._workflow_name && config.dispatch_workflow) {
-      registerTool(server, tool);
-      return;
+    if (tool._workflow_name) {
+      server.debug(`Found dispatch_workflow tool: ${tool.name} (_workflow_name: ${tool._workflow_name})`);
+      if (config.dispatch_workflow) {
+        server.debug(`  dispatch_workflow config exists, registering tool`);
+        registerTool(server, tool);
+        return;
+      } else {
+        // Note: Using server.debug() with "WARNING:" prefix since MCP server only provides
+        // debug and debugError methods. The prefix helps identify severity in logs.
+        server.debug(`  WARNING: dispatch_workflow config is missing or falsy - tool will NOT be registered`);
+        server.debug(`  Config keys: ${Object.keys(config).join(", ")}`);
+        server.debug(`  config.dispatch_workflow value: ${JSON.stringify(config.dispatch_workflow)}`);
+      }
     }
   });
 }