diff --git a/packages/sdk/README.md b/packages/sdk/README.md
index 06bc3b3..47cf7a9 100644
--- a/packages/sdk/README.md
+++ b/packages/sdk/README.md
@@ -30,6 +30,8 @@ To use `stitchTools()` with the [Vercel AI SDK](https://sdk.vercel.ai/), install
 npm install @google/stitch-sdk ai
 ```
 
+See [examples/tool-filtering](./examples/tool-filtering) for an example of filtering available tools with the `include` parameter.
+
 ## Working with Projects and Screens
 
 ### List existing projects
diff --git a/packages/sdk/examples/tool-filtering/README.md b/packages/sdk/examples/tool-filtering/README.md
new file mode 100644
index 0000000..fd94b91
--- /dev/null
+++ b/packages/sdk/examples/tool-filtering/README.md
@@ -0,0 +1,20 @@
+# Tool Filtering Example
+
+This example demonstrates how to use `stitchTools({ include: [...] })` to restrict which tools an LLM can call when using the Vercel AI SDK adapter.
+
+## Why Filter Tools?
+
+By default, `stitchTools()` provides all available Stitch MCP tools to the LLM. In many workflows, you want to restrict the LLM's capabilities to prevent unintended actions. For example:
+- **Read-only Agent**: Only provide `list_projects`, `list_screens`, and `get_screen` to prevent the agent from creating or editing designs.
+- **Iteration Agent**: Only provide `edit_screen` and `generate_screen_variants` if the agent's only job is to refine an existing design.
+
+## Usage
+
+Run the example script:
+
+```bash
+cd packages/sdk
+STITCH_API_KEY=your-api-key bun examples/tool-filtering/index.ts
+```
+
+The script will output the filtered list of tools to demonstrate that the output is successfully constrained.
diff --git a/packages/sdk/examples/tool-filtering/index.ts b/packages/sdk/examples/tool-filtering/index.ts
new file mode 100644
index 0000000..93b30fc
--- /dev/null
+++ b/packages/sdk/examples/tool-filtering/index.ts
@@ -0,0 +1,47 @@
+/**
+ * Demonstrates how to use Vercel AI SDK with a filtered list of Stitch tools.
+ *
+ * In a real scenario, you would pass `tools` to `generateText()` along with a
+ * Vercel AI SDK language model. This example logs the filtered tool configuration.
+ *
+ * Usage:
+ *   STITCH_API_KEY=your-key bun packages/sdk/examples/tool-filtering/index.ts
+ */
+import { stitchTools } from "@google/stitch-sdk/ai";
+
+import "../_require-key.js";
+
+console.log("🔍 Demonstrating Vercel AI SDK tool filtering...");
+
+// Generate tools but ONLY provide the tools that allow reading projects/screens.
+// This prevents the LLM from creating or modifying data.
+const readOnlyTools = stitchTools({
+  include: ["list_projects", "list_screens", "get_screen"],
+});
+
+console.log(`\n✅ Generated ${Object.keys(readOnlyTools).length} read-only tools:`);
+for (const [name, tool] of Object.entries(readOnlyTools)) {
+  console.log(`  - ${name}: ${tool.description?.slice(0, 80)}...`);
+}
+
+// Generate tools but ONLY provide tools related to design iteration.
+const iterationTools = stitchTools({
+  include: ["edit_screen", "generate_screen_variants_from_text"],
+});
+
+console.log(`\n✅ Generated ${Object.keys(iterationTools).length} iteration tools:`);
+for (const [name, tool] of Object.entries(iterationTools)) {
+  console.log(`  - ${name}: ${tool.description?.slice(0, 80)}...`);
+}
+
+console.log("\n💡 Usage with Vercel AI SDK:");
+console.log(`
+import { generateText } from "ai";
+
+const { text } = await generateText({
+  model: yourModel,
+  tools: readOnlyTools, // LLM can only read, not write!
+  prompt: "What projects do I have?",
+  maxSteps: 5,
+});
+`);