diff --git a/src/mcp_server_cli/templates/tool_template.yaml b/src/mcp_server_cli/templates/tool_template.yaml
index 5ffef57..ba4f37b 100644
--- a/src/mcp_server_cli/templates/tool_template.yaml
+++ b/src/mcp_server_cli/templates/tool_template.yaml
@@ -1,25 +1,16 @@
-name: my_custom_tool
-description: A description of what your tool does
+name: {{tool_name}}
+description: {{tool_description}}
 
 input_schema:
   type: object
   properties:
-    param1:
-      type: string
-      description: Description of param1
-      required: true
-    param2:
-      type: integer
-      description: Description of param2
-      default: 10
-    param3:
-      type: boolean
-      description: Optional boolean parameter
-      default: false
-  required:
-    - param1
+    {% for param in parameters %}
+    {{param.name}}:
+      type: {{param.type}}
+      description: {{param.description}}
+      {% if param.required %}required: true{% endif %}
+    {% endfor %}
 
 annotations:
-  read_only_hint: false
-  destructive_hint: false
-  non_confidential: true
+  read_only_hint: {{read_only_hint | default(false)}}
+  destructive_hint: {{destructive_hint | default(false)}}