diff --git a/src/mcp/install-mcp-server.ts b/src/mcp/install-mcp-server.ts
index 22de611..d5fac34 100644
--- a/src/mcp/install-mcp-server.ts
+++ b/src/mcp/install-mcp-server.ts
@@ -177,25 +177,27 @@ export async function prepareMcpConfig(
       if (!actuallyHasPermission) {
         core.warning(
           "The github_ci MCP server requires 'actions: read' permission. " +
-            "Please ensure your GitHub token has this permission. " +
+            "Skipping CI server installation. " +
+            "To enable CI status checks, add 'actions: read' to your workflow permissions. " +
             "See: https://docs.github.com/en/actions/security-guides/automatic-token-authentication#permissions-for-the-github_token",
         );
+      } else {
+        baseMcpConfig.mcpServers.github_ci = {
+          command: "bun",
+          args: [
+            "run",
+            `${process.env.GITHUB_ACTION_PATH}/src/mcp/github-actions-server.ts`,
+          ],
+          env: {
+            // Use workflow github token, not app token
+            GITHUB_TOKEN: process.env.DEFAULT_WORKFLOW_TOKEN,
+            REPO_OWNER: owner,
+            REPO_NAME: repo,
+            PR_NUMBER: context.entityNumber?.toString() || "",
+            RUNNER_TEMP: process.env.RUNNER_TEMP || "/tmp",
+          },
+        };
       }
-      baseMcpConfig.mcpServers.github_ci = {
-        command: "bun",
-        args: [
-          "run",
-          `${process.env.GITHUB_ACTION_PATH}/src/mcp/github-actions-server.ts`,
-        ],
-        env: {
-          // Use workflow github token, not app token
-          GITHUB_TOKEN: process.env.DEFAULT_WORKFLOW_TOKEN,
-          REPO_OWNER: owner,
-          REPO_NAME: repo,
-          PR_NUMBER: context.entityNumber?.toString() || "",
-          RUNNER_TEMP: process.env.RUNNER_TEMP || "/tmp",
-        },
-      };
     }
 
     if (hasGitHubMcpTools) {
diff --git a/test/install-mcp-server.test.ts b/test/install-mcp-server.test.ts
index 8de7b5c..152d2be 100644
--- a/test/install-mcp-server.test.ts
+++ b/test/install-mcp-server.test.ts
@@ -9,6 +9,7 @@ describe("prepareMcpConfig", () => {
   let consoleWarningSpy: any;
   let setFailedSpy: any;
   let processExitSpy: any;
+  let fetchSpy: any;
 
   // Create a mock context for tests
   const mockContext: ParsedGitHubContext = {
@@ -66,6 +67,10 @@ describe("prepareMcpConfig", () => {
     processExitSpy = spyOn(process, "exit").mockImplementation(() => {
       throw new Error("Process exit");
     });
+    // Mock fetch so checkActionsReadPermission succeeds (returns 200 for actions API)
+    fetchSpy = spyOn(global, "fetch").mockResolvedValue(
+      new Response(JSON.stringify({ workflow_runs: [] }), { status: 200 }),
+    );
 
     // Set up required environment variables
     if (!process.env.GITHUB_ACTION_PATH) {
@@ -78,6 +83,7 @@ describe("prepareMcpConfig", () => {
     consoleWarningSpy.mockRestore();
     setFailedSpy.mockRestore();
     processExitSpy.mockRestore();
+    fetchSpy.mockRestore();
   });
 
   test("should return comment server when commit signing is disabled", async () => {
@@ -263,6 +269,33 @@ describe("prepareMcpConfig", () => {
     expect(parsed.mcpServers.github_ci).not.toBeDefined();
   });
 
+  test("should not include github_ci server when actions:read permission is missing", async () => {
+    process.env.DEFAULT_WORKFLOW_TOKEN = "workflow-token";
+    // Simulate 403 from actions API
+    fetchSpy.mockResolvedValue(
+      new Response(
+        JSON.stringify({ message: "Resource not accessible by integration" }),
+        { status: 403 },
+      ),
+    );
+
+    const result = await prepareMcpConfig({
+      githubToken: "test-token",
+      owner: "test-owner",
+      repo: "test-repo",
+      branch: "test-branch",
+      baseBranch: "main",
+      allowedTools: [],
+      mode: "tag",
+      context: mockPRContext,
+    });
+
+    const parsed = JSON.parse(result);
+    expect(parsed.mcpServers.github_ci).not.toBeDefined();
+
+    delete process.env.DEFAULT_WORKFLOW_TOKEN;
+  });
+
   test("should not include github_ci server when DEFAULT_WORKFLOW_TOKEN is missing", async () => {
     delete process.env.DEFAULT_WORKFLOW_TOKEN;