diff --git a/examples/basic-host/src/implementation.ts b/examples/basic-host/src/implementation.ts
index d1d1bcc6b..9ab575911 100644
--- a/examples/basic-host/src/implementation.ts
+++ b/examples/basic-host/src/implementation.ts
@@ -186,11 +186,19 @@ export async function initializeApp(
   log.info("Sending tool call input to MCP App:", input);
   appBridge.sendToolInput({ arguments: input });
 
-  // Schedule tool call result to be sent to MCP App
-  resultPromise.then((result) => {
-    log.info("Sending tool call result to MCP App:", result);
-    appBridge.sendToolResult(result);
-  });
+  // Schedule tool call result (or cancellation) to be sent to MCP App
+  resultPromise.then(
+    (result) => {
+      log.info("Sending tool call result to MCP App:", result);
+      appBridge.sendToolResult(result);
+    },
+    (error) => {
+      log.error("Tool call failed, sending cancellation to MCP App:", error);
+      appBridge.sendToolCancelled({
+        reason: error instanceof Error ? error.message : String(error),
+      });
+    },
+  );
 }
 
 /**
diff --git a/examples/basic-host/src/index.module.css b/examples/basic-host/src/index.module.css
index c162aa8c8..0c4a8b0ae 100644
--- a/examples/basic-host/src/index.module.css
+++ b/examples/basic-host/src/index.module.css
@@ -92,10 +92,32 @@
     flex-direction: column;
     margin: 0;
     font-size: 1.5rem;
+    position: relative;
 
     .toolName {
       font-family: monospace;
     }
+
+    .closeButton {
+      position: absolute;
+      top: 0;
+      right: 0;
+      width: 1.5rem;
+      height: 1.5rem;
+      padding: 0;
+      border: none;
+      border-radius: 4px;
+      background: #e0e0e0;
+      font-size: 1.25rem;
+      line-height: 1;
+      color: #666;
+      cursor: pointer;
+
+      &:hover {
+        background: #d0d0d0;
+        color: #333;
+      }
+    }
   }
 }
 
diff --git a/examples/basic-host/src/index.tsx b/examples/basic-host/src/index.tsx
index 37eac43fc..1288a340d 100644
--- a/examples/basic-host/src/index.tsx
+++ b/examples/basic-host/src/index.tsx
@@ -8,17 +8,41 @@ import styles from "./index.module.css";
 interface HostProps {
   serversPromise: Promise<ServerInfo[]>;
 }
+
+type ToolCallEntry = ToolCallInfo & { id: number };
+let nextToolCallId = 0;
+
 function Host({ serversPromise }: HostProps) {
-  const [toolCalls, setToolCalls] = useState<ToolCallInfo[]>([]);
+  const [toolCalls, setToolCalls] = useState<ToolCallEntry[]>([]);
+  const [destroyingIds, setDestroyingIds] = useState<Set<number>>(new Set());
+
+  const requestClose = (id: number) => {
+    setDestroyingIds((s) => new Set(s).add(id));
+  };
+
+  const completeClose = (id: number) => {
+    setDestroyingIds((s) => {
+      const next = new Set(s);
+      next.delete(id);
+      return next;
+    });
+    setToolCalls((calls) => calls.filter((c) => c.id !== id));
+  };
 
   return (
     <>
-      {toolCalls.map((info, i) => (
-        <ToolCallInfoPanel key={i} toolCallInfo={info} />
+      {toolCalls.map((info) => (
+        <ToolCallInfoPanel
+          key={info.id}
+          toolCallInfo={info}
+          isDestroying={destroyingIds.has(info.id)}
+          onRequestClose={() => requestClose(info.id)}
+          onCloseComplete={() => completeClose(info.id)}
+        />
       ))}
       <CallToolPanel
         serversPromise={serversPromise}
-        addToolCall={(info) => setToolCalls([...toolCalls, info])}
+        addToolCall={(info) => setToolCalls([...toolCalls, { ...info, id: nextToolCallId++ }])}
       />
     </>
   );
@@ -135,14 +159,38 @@ function ServerSelect({ serversPromise, onSelect }: ServerSelectProps) {
 
 interface ToolCallInfoPanelProps {
   toolCallInfo: ToolCallInfo;
+  isDestroying?: boolean;
+  onRequestClose?: () => void;
+  onCloseComplete?: () => void;
 }
-function ToolCallInfoPanel({ toolCallInfo }: ToolCallInfoPanelProps) {
+function ToolCallInfoPanel({ toolCallInfo, isDestroying, onRequestClose, onCloseComplete }: ToolCallInfoPanelProps) {
+  const isApp = hasAppHtml(toolCallInfo);
+
+  // For non-app tool calls, close immediately when isDestroying becomes true
+  useEffect(() => {
+    if (isDestroying && !isApp) {
+      onCloseComplete?.();
+    }
+  }, [isDestroying, isApp, onCloseComplete]);
+
   return (
-    <div className={styles.toolCallInfoPanel}>
+    <div
+      className={styles.toolCallInfoPanel}
+      style={isDestroying ? { opacity: 0.5, pointerEvents: "none" } : undefined}
+    >
       <div className={styles.inputInfoPanel}>
         <h2>
           <span>{toolCallInfo.serverInfo.name}</span>
           <span className={styles.toolName}>{toolCallInfo.tool.name}</span>
+          {onRequestClose && !isDestroying && (
+            <button
+              className={styles.closeButton}
+              onClick={onRequestClose}
+              title="Close"
+            >
+              ×
+            </button>
+          )}
         </h2>
         <JsonBlock value={toolCallInfo.input} />
       </div>
@@ -150,8 +198,12 @@ function ToolCallInfoPanel({ toolCallInfo }: ToolCallInfoPanelProps) {
         <ErrorBoundary>
           <Suspense fallback="Loading...">
             {
-              hasAppHtml(toolCallInfo)
-                ? <AppIFramePanel toolCallInfo={toolCallInfo} />
+              isApp
+                ? <AppIFramePanel
+                    toolCallInfo={toolCallInfo}
+                    isDestroying={isDestroying}
+                    onTeardownComplete={onCloseComplete}
+                  />
                 : <ToolResultPanel toolCallInfo={toolCallInfo} />
             }
           </Suspense>
@@ -173,9 +225,12 @@ function JsonBlock({ value }: { value: object }) {
 
 interface AppIFramePanelProps {
   toolCallInfo: Required<ToolCallInfo>;
+  isDestroying?: boolean;
+  onTeardownComplete?: () => void;
 }
-function AppIFramePanel({ toolCallInfo }: AppIFramePanelProps) {
+function AppIFramePanel({ toolCallInfo, isDestroying, onTeardownComplete }: AppIFramePanelProps) {
   const iframeRef = useRef<HTMLIFrameElement | null>(null);
+  const appBridgeRef = useRef<ReturnType<typeof newAppBridge> | null>(null);
 
   useEffect(() => {
     const iframe = iframeRef.current!;
@@ -186,11 +241,34 @@ function AppIFramePanel({ toolCallInfo }: AppIFramePanelProps) {
       // `toolCallInfo`.
       if (firstTime) {
         const appBridge = newAppBridge(toolCallInfo.serverInfo, iframe);
+        appBridgeRef.current = appBridge;
         initializeApp(iframe, appBridge, toolCallInfo);
       }
     });
   }, [toolCallInfo]);
 
+  // Graceful teardown: wait for guest to respond before unmounting
+  // This follows the spec: "Host SHOULD wait for a response before tearing
+  // down the resource (to prevent data loss)."
+  useEffect(() => {
+    if (!isDestroying) return;
+
+    if (!appBridgeRef.current) {
+      // Bridge not ready yet (e.g., user closed before iframe loaded)
+      onTeardownComplete?.();
+      return;
+    }
+
+    log.info("Sending teardown notification to MCP App");
+    appBridgeRef.current.sendResourceTeardown({})
+      .catch((err) => {
+        log.warn("Teardown request failed (app may have already closed):", err);
+      })
+      .finally(() => {
+        onTeardownComplete?.();
+      });
+  }, [isDestroying, onTeardownComplete]);
+
   return (
     <div className={styles.appIframePanel}>
       <iframe ref={iframeRef} />
diff --git a/examples/basic-server-react/src/mcp-app.tsx b/examples/basic-server-react/src/mcp-app.tsx
index eb5bb1313..3d46bdfc7 100644
--- a/examples/basic-server-react/src/mcp-app.tsx
+++ b/examples/basic-server-react/src/mcp-app.tsx
@@ -1,7 +1,7 @@
 /**
  * @file App that demonstrates a few features using MCP Apps SDK + React.
  */
-import type { App } from "@modelcontextprotocol/ext-apps";
+import type { App, McpUiResourceTeardownResult } from "@modelcontextprotocol/ext-apps";
 import { useApp } from "@modelcontextprotocol/ext-apps/react";
 import type { CallToolResult } from "@modelcontextprotocol/sdk/types.js";
 import { StrictMode, useCallback, useEffect, useState } from "react";
@@ -35,6 +35,12 @@ function GetTimeApp() {
     appInfo: IMPLEMENTATION,
     capabilities: {},
     onAppCreated: (app) => {
+      app.onteardown = async () => {
+        log.info("App is being torn down");
+        await new Promise((resolve) => setTimeout(resolve, 500)); // Simulate cleanup work
+        log.info("App teardown complete");
+        return {};
+      };
       app.ontoolinput = async (input) => {
         log.info("Received tool call input:", input);
       };
diff --git a/examples/basic-server-vanillajs/src/mcp-app.ts b/examples/basic-server-vanillajs/src/mcp-app.ts
index f93dfeea6..7bfa6d698 100644
--- a/examples/basic-server-vanillajs/src/mcp-app.ts
+++ b/examples/basic-server-vanillajs/src/mcp-app.ts
@@ -38,6 +38,12 @@ const openLinkBtn = document.getElementById("open-link-btn")!;
 // Create app instance
 const app = new App({ name: "Get Time App", version: "1.0.0" });
 
+app.onteardown = async () => {
+  log.info("App is being torn down");
+  await new Promise((resolve) => setTimeout(resolve, 500)); // Simulate cleanup work
+  log.info("App teardown complete");
+  return {};
+};
 
 // Register handlers BEFORE connecting
 app.ontoolinput = (params) => {
diff --git a/src/app-bridge.test.ts b/src/app-bridge.test.ts
index 0d9e9e5be..43db7b233 100644
--- a/src/app-bridge.test.ts
+++ b/src/app-bridge.test.ts
@@ -140,6 +140,36 @@ describe("App <-> AppBridge integration", () => {
       });
     });
 
+    it("sendToolCancelled triggers app.ontoolcancelled", async () => {
+      const receivedCancellations: unknown[] = [];
+      app.ontoolcancelled = (params) => {
+        receivedCancellations.push(params);
+      };
+
+      await app.connect(appTransport);
+      await bridge.sendToolCancelled({
+        reason: "User cancelled the operation",
+      });
+
+      expect(receivedCancellations).toHaveLength(1);
+      expect(receivedCancellations[0]).toEqual({
+        reason: "User cancelled the operation",
+      });
+    });
+
+    it("sendToolCancelled works without reason", async () => {
+      const receivedCancellations: unknown[] = [];
+      app.ontoolcancelled = (params) => {
+        receivedCancellations.push(params);
+      };
+
+      await app.connect(appTransport);
+      await bridge.sendToolCancelled({});
+
+      expect(receivedCancellations).toHaveLength(1);
+      expect(receivedCancellations[0]).toEqual({});
+    });
+
     it("setHostContext triggers app.onhostcontextchanged", async () => {
       const receivedContexts: unknown[] = [];
       app.onhostcontextchanged = (params) => {
@@ -173,6 +203,34 @@ describe("App <-> AppBridge integration", () => {
         { theme: "light" },
       ]);
     });
+
+    it("sendResourceTeardown triggers app.onteardown", async () => {
+      let teardownCalled = false;
+      app.onteardown = async () => {
+        teardownCalled = true;
+        return {};
+      };
+
+      await app.connect(appTransport);
+      await bridge.sendResourceTeardown({});
+
+      expect(teardownCalled).toBe(true);
+    });
+
+    it("sendResourceTeardown waits for async cleanup", async () => {
+      const cleanupSteps: string[] = [];
+      app.onteardown = async () => {
+        cleanupSteps.push("start");
+        await new Promise((resolve) => setTimeout(resolve, 10));
+        cleanupSteps.push("done");
+        return {};
+      };
+
+      await app.connect(appTransport);
+      await bridge.sendResourceTeardown({});
+
+      expect(cleanupSteps).toEqual(["start", "done"]);
+    });
   });
 
   describe("App -> Host notifications", () => {
diff --git a/src/app-bridge.ts b/src/app-bridge.ts
index c4b2bdbd2..c8e3b304b 100644
--- a/src/app-bridge.ts
+++ b/src/app-bridge.ts
@@ -34,6 +34,7 @@ import {
 import {
   type McpUiSandboxResourceReadyNotification,
   type McpUiSizeChangedNotification,
+  type McpUiToolCancelledNotification,
   type McpUiToolInputNotification,
   type McpUiToolInputPartialNotification,
   type McpUiToolResultNotification,
@@ -737,6 +738,43 @@ export class AppBridge extends Protocol<Request, Notification, Result> {
     });
   }
 
+  /**
+   * Notify the Guest UI that tool execution was cancelled.
+   *
+   * The host MUST send this notification if tool execution was cancelled for any
+   * reason, including user action, sampling error, classifier intervention, or
+   * any other interruption. This allows the Guest UI to update its state and
+   * display appropriate feedback to the user.
+   *
+   * @param params - Optional cancellation details:
+   *   - `reason`: Human-readable explanation for why the tool was cancelled
+   *
+   * @example User-initiated cancellation
+   * ```typescript
+   * // User clicked "Cancel" button
+   * bridge.sendToolCancelled({ reason: "User cancelled the operation" });
+   * ```
+   *
+   * @example System-level cancellation
+   * ```typescript
+   * // Sampling error or timeout
+   * bridge.sendToolCancelled({ reason: "Request timeout after 30 seconds" });
+   *
+   * // Classifier intervention
+   * bridge.sendToolCancelled({ reason: "Content policy violation detected" });
+   * ```
+   *
+   * @see {@link McpUiToolCancelledNotification} for the notification type
+   * @see {@link sendToolResult} for sending successful results
+   * @see {@link sendToolInput} for sending tool arguments
+   */
+  sendToolCancelled(params: McpUiToolCancelledNotification["params"]) {
+    return this.notification(<McpUiToolCancelledNotification>{
+      method: "ui/notifications/tool-cancelled",
+      params,
+    });
+  }
+
   /**
    * Send HTML resource to the sandbox proxy for secure loading.
    *
diff --git a/src/app.ts b/src/app.ts
index 6813becb4..15261136c 100644
--- a/src/app.ts
+++ b/src/app.ts
@@ -31,7 +31,12 @@ import {
   McpUiMessageResultSchema,
   McpUiOpenLinkRequest,
   McpUiOpenLinkResultSchema,
+  McpUiResourceTeardownRequest,
+  McpUiResourceTeardownRequestSchema,
+  McpUiResourceTeardownResult,
   McpUiSizeChangedNotification,
+  McpUiToolCancelledNotification,
+  McpUiToolCancelledNotificationSchema,
   McpUiToolInputNotification,
   McpUiToolInputNotificationSchema,
   McpUiToolInputPartialNotification,
@@ -388,6 +393,41 @@ export class App extends Protocol<Request, Notification, Result> {
     );
   }
 
+  /**
+   * Convenience handler for receiving tool cancellation notifications from the host.
+   *
+   * Set this property to register a handler that will be called when the host
+   * notifies that tool execution was cancelled. This can occur for various reasons
+   * including user action, sampling error, classifier intervention, or other
+   * interruptions. Apps should update their state and display appropriate feedback.
+   *
+   * This setter is a convenience wrapper around `setNotificationHandler()` that
+   * automatically handles the notification schema and extracts the params for you.
+   *
+   * Register handlers before calling {@link connect} to avoid missing notifications.
+   *
+   * @param callback - Function called when tool execution is cancelled
+   *
+   * @example Handle tool cancellation
+   * ```typescript
+   * app.ontoolcancelled = (params) => {
+   *   console.log("Tool cancelled:", params.reason);
+   *   showCancelledMessage(params.reason ?? "Operation was cancelled");
+   * };
+   * ```
+   *
+   * @see {@link setNotificationHandler} for the underlying method
+   * @see {@link McpUiToolCancelledNotification} for the notification structure
+   * @see {@link ontoolresult} for successful tool completion
+   */
+  set ontoolcancelled(
+    callback: (params: McpUiToolCancelledNotification["params"]) => void,
+  ) {
+    this.setNotificationHandler(McpUiToolCancelledNotificationSchema, (n) =>
+      callback(n.params),
+    );
+  }
+
   /**
    * Convenience handler for host context changes (theme, viewport, locale, etc.).
    *
@@ -427,6 +467,48 @@ export class App extends Protocol<Request, Notification, Result> {
     );
   }
 
+  /**
+   * Convenience handler for graceful shutdown requests from the host.
+   *
+   * Set this property to register a handler that will be called when the host
+   * requests the app to prepare for teardown. This allows the app to perform
+   * cleanup operations (save state, close connections, etc.) before being unmounted.
+   *
+   * The handler can be sync or async. The host will wait for the returned promise
+   * to resolve before proceeding with teardown.
+   *
+   * This setter is a convenience wrapper around `setRequestHandler()` that
+   * automatically handles the request schema.
+   *
+   * Register handlers before calling {@link connect} to avoid missing requests.
+   *
+   * @param callback - Function called when teardown is requested.
+   *   Can return void or a Promise that resolves when cleanup is complete.
+   *
+   * @example Perform cleanup before teardown
+   * ```typescript
+   * app.onteardown = async () => {
+   *   await saveState();
+   *   closeConnections();
+   *   console.log("App ready for teardown");
+   * };
+   * ```
+   *
+   * @see {@link setRequestHandler} for the underlying method
+   * @see {@link McpUiResourceTeardownRequest} for the request structure
+   */
+  set onteardown(
+    callback: (
+      params: McpUiResourceTeardownRequest["params"],
+      extra: RequestHandlerExtra,
+    ) => McpUiResourceTeardownResult | Promise<McpUiResourceTeardownResult>,
+  ) {
+    this.setRequestHandler(
+      McpUiResourceTeardownRequestSchema,
+      (request, extra) => callback(request.params, extra),
+    );
+  }
+
   /**
    * Convenience handler for tool call requests from the host.
    *
@@ -533,6 +615,7 @@ export class App extends Protocol<Request, Notification, Result> {
         }
         return;
       case "ping":
+      case "ui/resource-teardown":
         return;
       default:
         throw new Error(`No handler for method ${method} registered`);
diff --git a/src/generated/schema.json b/src/generated/schema.json
index b51e23bc3..f3c1b1804 100644
--- a/src/generated/schema.json
+++ b/src/generated/schema.json
@@ -1732,6 +1732,28 @@
         }
       ]
     },
+    "McpUiToolCancelledNotification": {
+      "$schema": "https://json-schema.org/draft/2020-12/schema",
+      "type": "object",
+      "properties": {
+        "method": {
+          "type": "string",
+          "const": "ui/notifications/tool-cancelled"
+        },
+        "params": {
+          "type": "object",
+          "properties": {
+            "reason": {
+              "description": "Optional reason for the cancellation (e.g., \"user action\", \"timeout\").",
+              "type": "string"
+            }
+          },
+          "additionalProperties": false
+        }
+      },
+      "required": ["method", "params"],
+      "additionalProperties": false
+    },
     "McpUiToolInputNotification": {
       "$schema": "https://json-schema.org/draft/2020-12/schema",
       "type": "object",
diff --git a/src/generated/schema.test.ts b/src/generated/schema.test.ts
index 5a2e3a606..1751067ed 100644
--- a/src/generated/schema.test.ts
+++ b/src/generated/schema.test.ts
@@ -51,6 +51,10 @@ export type McpUiToolInputPartialNotificationSchemaInferredType = z.infer<
   typeof generated.McpUiToolInputPartialNotificationSchema
 >;
 
+export type McpUiToolCancelledNotificationSchemaInferredType = z.infer<
+  typeof generated.McpUiToolCancelledNotificationSchema
+>;
+
 export type McpUiResourceTeardownRequestSchemaInferredType = z.infer<
   typeof generated.McpUiResourceTeardownRequestSchema
 >;
@@ -151,6 +155,12 @@ expectType<spec.McpUiToolInputPartialNotification>(
 expectType<McpUiToolInputPartialNotificationSchemaInferredType>(
   {} as spec.McpUiToolInputPartialNotification,
 );
+expectType<spec.McpUiToolCancelledNotification>(
+  {} as McpUiToolCancelledNotificationSchemaInferredType,
+);
+expectType<McpUiToolCancelledNotificationSchemaInferredType>(
+  {} as spec.McpUiToolCancelledNotification,
+);
 expectType<spec.McpUiResourceTeardownRequest>(
   {} as McpUiResourceTeardownRequestSchemaInferredType,
 );
diff --git a/src/generated/schema.ts b/src/generated/schema.ts
index 1b181afa1..8cc87fde1 100644
--- a/src/generated/schema.ts
+++ b/src/generated/schema.ts
@@ -160,6 +160,24 @@ export const McpUiToolInputPartialNotificationSchema = z.object({
   }),
 });
 
+/**
+ * @description Notification that tool execution was cancelled (Host -> Guest UI).
+ * Host MUST send this if tool execution was cancelled for any reason (user action,
+ * sampling error, classifier intervention, etc.).
+ */
+export const McpUiToolCancelledNotificationSchema = z.object({
+  method: z.literal("ui/notifications/tool-cancelled"),
+  params: z.object({
+    /** @description Optional reason for the cancellation (e.g., "user action", "timeout"). */
+    reason: z
+      .string()
+      .optional()
+      .describe(
+        'Optional reason for the cancellation (e.g., "user action", "timeout").',
+      ),
+  }),
+});
+
 /**
  * @description Request for graceful shutdown of the Guest UI (Host -> Guest UI).
  * @see {@link app-bridge.AppBridge.sendResourceTeardown} for the host method that sends this
diff --git a/src/spec.types.ts b/src/spec.types.ts
index 2596bff5b..847138474 100644
--- a/src/spec.types.ts
+++ b/src/spec.types.ts
@@ -167,6 +167,19 @@ export interface McpUiToolResultNotification {
   params: CallToolResult;
 }
 
+/**
+ * @description Notification that tool execution was cancelled (Host -> Guest UI).
+ * Host MUST send this if tool execution was cancelled for any reason (user action,
+ * sampling error, classifier intervention, etc.).
+ */
+export interface McpUiToolCancelledNotification {
+  method: "ui/notifications/tool-cancelled";
+  params: {
+    /** @description Optional reason for the cancellation (e.g., "user action", "timeout"). */
+    reason?: string;
+  };
+}
+
 /**
  * @description Rich context about the host environment provided to Guest UIs.
  */
diff --git a/src/types.ts b/src/types.ts
index 92bb8cf83..5ed81313c 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -24,6 +24,7 @@ export {
   type McpUiToolInputNotification,
   type McpUiToolInputPartialNotification,
   type McpUiToolResultNotification,
+  type McpUiToolCancelledNotification,
   type McpUiHostContext,
   type McpUiHostContextChangedNotification,
   type McpUiResourceTeardownRequest,
@@ -51,6 +52,7 @@ export {
   McpUiToolInputNotificationSchema,
   McpUiToolInputPartialNotificationSchema,
   McpUiToolResultNotificationSchema,
+  McpUiToolCancelledNotificationSchema,
   McpUiHostContextSchema,
   McpUiHostContextChangedNotificationSchema,
   McpUiResourceTeardownRequestSchema,