They're often confused, but they solve different problems. A skill teaches the model how to do something. An MCP server gives the model new capabilities to call. The best setups use both.
| Agent skill (SKILL.md) | MCP server | |
|---|---|---|
| What it is | Markdown instructions + optional bundled files | A running program exposing tools/data over the Model Context Protocol |
| What it adds | Knowledge, procedure, conventions | New actions: query a DB, call an API, read a system |
| Runs code? | Only scripts it bundles, when the agent chooses to run them | Yes — it's a live service the agent calls |
| Install | Drop a file into the agent's skills/rules directory | Configure a server command + connection |
| Format | Open SKILL.md (agentskills.io) | Open MCP spec (modelcontextprotocol.io) |
The strongest pattern is both together: an MCP server exposes the tools, and a skill teaches the agent how to use those tools well — which tool for which job, the right arguments, the gotchas. A skill can explicitly reference an MCP server's tools in its instructions.
GuildSkills catalogs the skills side of this — 84,000+ cross-agent SKILL.md files. For MCP servers, see the open Model Context Protocol spec.