diff --git a/docs/mcps.md b/docs/mcps.md
index 6285c94c245..a1b93355b33 100644
--- a/docs/mcps.md
+++ b/docs/mcps.md
@@ -194,6 +194,41 @@ tools:
         X-Custom-Key: "${secrets.CUSTOM_KEY}"
 ```
 
+## Network Egress Permissions
+
+Restrict outbound network access for containerized MCP servers using a per‑tool domain allowlist. Define allowed domains under `mcp.permissions.network.allowed`.
+
+```yaml
+tools:
+  fetch:
+    mcp:
+      container: mcp/fetch
+      permissions:
+        network:
+          allowed:
+            - "example.com"
+    allowed: ["fetch"]
+```
+
+Enforcement in compiled workflows:
+
+- A [Squid proxy](https://www.squid-cache.org/) is generated and pinned to a dedicated Docker network for each proxy‑enabled MCP server.
+- The MCP container is configured with `HTTP_PROXY`/`HTTPS_PROXY` to point at Squid; iptables rules only allow egress to the proxy.
+- The proxy is seeded with an `allowed_domains.txt` built from your `allowed` list; requests to other domains are blocked.
+
+Notes:
+
+- **Only applies to stdio MCP servers with `container`** - Non‑container stdio and `type: http` servers will cause compilation errors
+- Use bare domains without scheme; list each domain you intend to permit.
+
+### Validation Rules
+
+The compiler enforces these network permission rules:
+
+- ❌ **HTTP servers**: `network egress permissions do not apply to remote 'type: http' servers`
+- ❌ **Non-container stdio**: `network egress permissions only apply to stdio MCP servers that specify a 'container'`  
+- ✅ **Container stdio**: Network permissions work correctly
+
 ## Debugging and Troubleshooting
 
 ### MCP Server Inspection
@@ -255,4 +290,4 @@ Error: Tool 'my_tool' not found
 ## External Resources
 
 - [Model Context Protocol Specification](https://github.com/modelcontextprotocol/specification)
-- [GitHub MCP Server](https://github.com/github/github-mcp-server)
\ No newline at end of file
+- [GitHub MCP Server](https://github.com/github/github-mcp-server)
diff --git a/docs/security-notes.md b/docs/security-notes.md
index 7d8926d2abe..5a7fe0908e3 100644
--- a/docs/security-notes.md
+++ b/docs/security-notes.md
@@ -169,7 +169,33 @@ tools:
 
 #### Egress Filtering
 
-A critical guardrail is strict control over outbound network connections. Consider using network proxies to enforce allowlists for outbound hosts.
+A critical guardrail is strict control over outbound network connections. Agentic Workflows now supports declarative network allowlists for containerized MCP servers.
+
+Example (domain allowlist):
+
+```yaml
+tools:
+  fetch:
+    mcp:
+      type: stdio
+      container: mcp/fetch
+      permissions:
+        network:
+          allowed:
+            - "example.com"
+    allowed: ["fetch"]
+```
+
+Enforcement details:
+
+- Compiler generates a per‑tool Squid proxy and Docker network; MCP egress is forced through the proxy via iptables.
+- Only listed domains are reachable; all others are denied at the network layer.
+- Applies to `mcp.container` stdio servers. Non‑container stdio and `type: http` servers are not supported and will cause compilation errors.
+
+Operational guidance:
+
+- Use bare domains (no scheme). Explicitly list each domain you intend to permit.
+- Prefer minimal allowlists; review the compiled `.lock.yml` to verify proxy setup and rules.
 
 ### Agent Security and Prompt Injection Defense
 
diff --git a/pkg/workflow/mcp-config.go b/pkg/workflow/mcp-config.go
index 7e70b91b34b..c519e685f55 100644
--- a/pkg/workflow/mcp-config.go
+++ b/pkg/workflow/mcp-config.go
@@ -371,7 +371,7 @@ func ValidateMCPConfigs(tools map[string]any) error {
 				}
 
 				// Validate MCP configuration requirements (before transformation)
-				if err := validateMCPRequirements(toolName, mcpConfig); err != nil {
+				if err := validateMCPRequirements(toolName, mcpConfig, config); err != nil {
 					return err
 				}
 			}
@@ -471,7 +471,7 @@ func hasNetworkPermissions(toolConfig map[string]any) (bool, []string) {
 }
 
 // validateMCPRequirements validates the specific requirements for MCP configuration
-func validateMCPRequirements(toolName string, mcpConfig map[string]any) error {
+func validateMCPRequirements(toolName string, mcpConfig map[string]any, toolConfig map[string]any) error {
 	// Validate 'type' property
 	mcpType, hasType := mcpConfig["type"]
 	if err := validateStringProperty(toolName, "type", mcpType, hasType); err != nil {
@@ -489,6 +489,25 @@ func validateMCPRequirements(toolName string, mcpConfig map[string]any) error {
 		return fmt.Errorf("tool '%s' mcp configuration 'type' value must be one of: stdio, http", toolName)
 	}
 
+	// Validate network permissions usage first
+	hasNetPerms, _ := hasNetworkPermissions(toolConfig)
+	if !hasNetPerms {
+		// Also check if permissions are nested in the mcp config itself
+		hasNetPerms, _ = hasNetworkPermissions(map[string]any{"mcp": mcpConfig})
+	}
+	if hasNetPerms {
+		switch typeStr {
+		case "http":
+			return fmt.Errorf("tool '%s' has network permissions configured, but network egress permissions do not apply to remote 'type: http' servers", toolName)
+		case "stdio":
+			// Network permissions only apply to stdio servers with container
+			_, hasContainer := mcpConfig["container"]
+			if !hasContainer {
+				return fmt.Errorf("tool '%s' has network permissions configured, but network egress permissions only apply to stdio MCP servers that specify a 'container'", toolName)
+			}
+		}
+	}
+
 	// Validate type-specific requirements
 	switch typeStr {
 	case "http":
diff --git a/pkg/workflow/mcp_json_test.go b/pkg/workflow/mcp_json_test.go
index f83bae836ff..0013ee65b8e 100644
--- a/pkg/workflow/mcp_json_test.go
+++ b/pkg/workflow/mcp_json_test.go
@@ -320,6 +320,81 @@ func TestValidateMCPConfigs(t *testing.T) {
 			wantErr: true,
 			errMsg:  "missing property 'url'",
 		},
+		{
+			name: "network permissions with HTTP type should fail",
+			tools: map[string]any{
+				"httpWithNetPerms": map[string]any{
+					"mcp": map[string]any{
+						"type": "http",
+						"url":  "https://example.com",
+					},
+					"permissions": map[string]any{
+						"network": map[string]any{
+							"allowed": []any{"example.com"},
+						},
+					},
+					"allowed": []any{"tool1"},
+				},
+			},
+			wantErr: true,
+			errMsg:  "network egress permissions do not apply to remote 'type: http' servers",
+		},
+		{
+			name: "network permissions with stdio non-container should fail",
+			tools: map[string]any{
+				"stdioNonContainerWithNetPerms": map[string]any{
+					"mcp": map[string]any{
+						"type":    "stdio",
+						"command": "python",
+					},
+					"permissions": map[string]any{
+						"network": map[string]any{
+							"allowed": []any{"example.com"},
+						},
+					},
+					"allowed": []any{"tool1"},
+				},
+			},
+			wantErr: true,
+			errMsg:  "network egress permissions only apply to stdio MCP servers that specify a 'container'",
+		},
+		{
+			name: "network permissions with stdio container should pass",
+			tools: map[string]any{
+				"stdioContainerWithNetPerms": map[string]any{
+					"mcp": map[string]any{
+						"type":      "stdio",
+						"container": "mcp/fetch",
+					},
+					"permissions": map[string]any{
+						"network": map[string]any{
+							"allowed": []any{"example.com"},
+						},
+					},
+					"allowed": []any{"tool1"},
+				},
+			},
+			wantErr: false,
+		},
+		{
+			name: "network permissions in mcp section with HTTP type should fail",
+			tools: map[string]any{
+				"httpWithMcpNetPerms": map[string]any{
+					"mcp": map[string]any{
+						"type": "http",
+						"url":  "https://example.com",
+						"permissions": map[string]any{
+							"network": map[string]any{
+								"allowed": []any{"example.com"},
+							},
+						},
+					},
+					"allowed": []any{"tool1"},
+				},
+			},
+			wantErr: true,
+			errMsg:  "network egress permissions do not apply to remote 'type: http' servers",
+		},
 	}
 
 	for _, tt := range tests {