diff --git a/process_runner.py b/process_runner.py
index 1affd13..6d51098 100644
--- a/process_runner.py
+++ b/process_runner.py
@@ -56,9 +56,26 @@ async def _recv(self, timeout: float = 30.0) -> dict[str, Any]:
         assert self._proc and self._proc.stdout
         line = await asyncio.wait_for(self._proc.stdout.readline(), timeout=timeout)
         if not line:
-            raise EOFError("MCP process closed stdout")
+            # The subprocess closed stdout — usually means it crashed.  Drain
+            # stderr (best-effort, non-blocking) so the caller sees the actual
+            # cause rather than a bare "closed stdout".
+            stderr_tail = await self._drain_stderr_tail()
+            suffix = f"\nsubprocess stderr (tail): {stderr_tail}" if stderr_tail else ""
+            raise EOFError(f"MCP process closed stdout{suffix}")
         return json.loads(line)
 
+    async def _drain_stderr_tail(self, max_bytes: int = 4096) -> str:
+        """Return up to ``max_bytes`` of buffered stderr from the subprocess."""
+        if not self._proc or not self._proc.stderr:
+            return ""
+        try:
+            data = await asyncio.wait_for(
+                self._proc.stderr.read(max_bytes), timeout=2.0
+            )
+        except (asyncio.TimeoutError, Exception):
+            return ""
+        return data.decode(errors="replace").strip()
+
     async def _start(self) -> None:
         env = self._build_env()
         self._proc = await asyncio.create_subprocess_exec(
diff --git a/server.py b/server.py
index 665d535..27b73a4 100755
--- a/server.py
+++ b/server.py
@@ -81,6 +81,11 @@
 
 ADVERTISED_NAME_SEP = "__"
 
+# Maximum wall-clock time (seconds) a single build command may run before
+# materialize_repository gives up.  Protects against users pasting a
+# long-running server start (e.g. `npm run start:dev`) into build_commands.
+BUILD_COMMAND_TIMEOUT = int(os.environ.get("MCPPROXY_BUILD_TIMEOUT", "600"))
+
 
 # ---------------------------------------------------------------------------
 # Pure helpers
@@ -362,7 +367,20 @@ def materialize_repository(spec: dict[str, Any]) -> None:
             if not cmd:
                 continue
             print(f"Running build command in {workdir}: {cmd}")
-            subprocess.run(shlex.split(cmd), cwd=workdir, check=True)
+            try:
+                subprocess.run(
+                    shlex.split(cmd),
+                    cwd=workdir,
+                    check=True,
+                    timeout=BUILD_COMMAND_TIMEOUT,
+                )
+            except subprocess.TimeoutExpired:
+                raise RuntimeError(
+                    f"Build command timed out after {BUILD_COMMAND_TIMEOUT}s: {cmd!r}. "
+                    "Build commands must terminate — if this is a long-running "
+                    "server command (e.g. `npm run start:dev`), move it to the "
+                    "Spawn command field instead."
+                )
     except Exception as exc:
         print(f"materialize_repository error in {source_path}: {exc}")
         traceback.print_exc()
@@ -577,9 +595,27 @@ def register_builtin_tools() -> None:
 
 register_builtin_tools()
 
+# One bad provider must not crash startup — log and continue.  Providers whose
+# setup fails (e.g. a build command exits non-zero) are still registered if
+# register_provider succeeded; broken tool invocations will surface the error
+# at call time rather than preventing the whole server from coming up.
 for provider_spec in load_provider_specs(CONFIG_DIR):
-    register_provider(provider_spec)
-    run_provider_setup(provider_spec)
+    source_path = provider_spec.get("_config_path", "<unknown>")
+    try:
+        register_provider(provider_spec)
+    except Exception as exc:
+        print(f"Skipping provider {source_path} — register_provider failed: {exc}")
+        traceback.print_exc()
+        continue
+    try:
+        run_provider_setup(provider_spec)
+    except Exception as exc:
+        print(
+            f"Provider {source_path}: setup failed ({exc}). "
+            "Tools are registered but their subprocess may not work until the "
+            "build / requirements / setup_commands are fixed (see the editor)."
+        )
+        traceback.print_exc()
 
 
 # ---------------------------------------------------------------------------
diff --git a/tests/test_process_runner.py b/tests/test_process_runner.py
index 9c252fe..efb0859 100644
--- a/tests/test_process_runner.py
+++ b/tests/test_process_runner.py
@@ -1,4 +1,6 @@
 """Tests for process_runner.py — cwd threading and session keying."""
+import pytest
+
 import process_runner
 
 
@@ -75,3 +77,30 @@ def test_no_env_keys_skips_file_read(self, tmp_path, monkeypatch):
         s = process_runner.ProcessSession("echo hi")
         env = s._build_env()  # must not raise
         assert isinstance(env, dict)
+
+
+class TestIntrospectStderrCapture:
+    """When the subprocess crashes during the handshake, the error message
+    should include stderr so the user can see the cause."""
+
+    @pytest.mark.asyncio
+    async def test_eof_error_includes_stderr_tail(self):
+        class FakeStdout:
+            async def readline(self):
+                return b""
+        class FakeStderr:
+            def __init__(self, data):
+                self._data = data
+            async def read(self, n):
+                d, self._data = self._data[:n], self._data[n:]
+                return d
+
+        session = process_runner.ProcessSession("does-not-matter")
+        class _Proc:
+            stdout = FakeStdout()
+            stderr = FakeStderr(b"Environment validation failed: KEY: Required\n")
+        session._proc = _Proc()
+
+        with pytest.raises(EOFError) as exc_info:
+            await session._recv(timeout=1.0)
+        assert "Environment validation failed" in str(exc_info.value)
diff --git a/tests/test_server.py b/tests/test_server.py
index 6478700..3b7356c 100644
--- a/tests/test_server.py
+++ b/tests/test_server.py
@@ -990,3 +990,38 @@ async def call_tool(self, *a, **kw): return {"ok": True}
             import asyncio
             asyncio.run(entry["handler"](None))
         assert captured["env_keys"] == ["A", "B"]
+
+
+class TestBuildCommandTimeout:
+    """A build command that hangs must not deadlock server startup."""
+
+    def test_timeout_raises_helpful_runtime_error(self, tmp_path: Path):
+        import subprocess as sp
+        wd = str(tmp_path / "wd")
+        spec = {
+            "_config_path": str(tmp_path / "r.yaml"),
+            "repository": {
+                "url": "https://example.com/r.git",
+                "workdir": wd,
+                "build_commands": ["sleep 99999"],
+            },
+        }
+
+        def fake_run(args, **kwargs):
+            if args[0:2] == ["git", "clone"]:
+                Path(args[3]).mkdir(parents=True, exist_ok=True)
+                class _R: returncode = 0
+                return _R()
+            # Build command — simulate a hang by raising TimeoutExpired.
+            raise sp.TimeoutExpired(args, kwargs.get("timeout", 1))
+
+        with patch("server.subprocess.run", side_effect=fake_run):
+            with pytest.raises(RuntimeError, match="Build command timed out"):
+                materialize_repository(spec)
+
+    def test_timeout_constant_overridable_via_env(self, monkeypatch):
+        # The constant is read at module import — we can't easily re-import
+        # in the same process, but the symbol should exist and be an int.
+        import server as srv
+        assert isinstance(srv.BUILD_COMMAND_TIMEOUT, int)
+        assert srv.BUILD_COMMAND_TIMEOUT > 0