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Integrated terminal, thinking effort improvements, and MCP OAuth support

Dyad v1.3.0 Beta 1 introduces an integrated terminal, improves thinking efforts, adds MCP OAuth support, and includes several other fixes and improvements.

Highlights

Integrated terminal

Dyad now includes an integrated terminal that you can open from chat.

The terminal runs in the context of the current app, making it easier to inspect files, run commands, install packages, and debug issues without leaving Dyad.

Terminal sessions are reused per app, so you can keep command output and terminal state available while working across chats. Dyad also remembers terminal visibility per chat and cleans up terminal sessions when apps are deleted.

Thinking effort improvements

Dyad now supports Anthropic extended thinking and makes it easier to configure the thinking effort with a first-class selector next to the model picker, instead of being tucked away in the Settings page.

For supported models, you can adjust how much thinking effort Dyad uses before responding. You can choose between faster responses and more reasoning for complex planning or implementation tasks.

MCP OAuth support

Dyad now supports OAuth for MCP servers.

This makes it possible to connect to MCP servers that require OAuth-based sign-in, instead of being limited to servers that work without OAuth or only use static credentials.

Efficient MCP tool calls

Dyad can now run enabled MCP tool calls from inside sandbox scripts, making MCP-heavy workflows more efficient.

Instead of spending a separate model/tool round trip for every MCP call, Dyad can chain multiple MCP calls in one sandbox execution, such as fetching data, filtering it, and returning only the useful result. This reduces tool-call overhead and helps preserve the context window for the parts of the workflow that matter most.

Enhancements

  • Added a unified Database section and automated Vercel configuration for Neon apps, reducing manual setup before deployment.
  • Improved Neon migration guidance so generated database changes better explain how migrations are applied.
  • Added a PostgreSQL schema mutation classifier to improve how Dyad identifies schema changes and flags risky database updates.
  • Restored chat tabs on startup, so previously open chats are easier to resume after relaunching Dyad.
  • Made preview proxy ports deterministic per app, improving preview stability when reopening or switching between apps.
  • Fixed an issue where the streaming loader could freeze during chat generation.
  • New GitHub and Vercel project names now use kebab-case for more consistent generated names.
  • Starting an app from an existing plan now skips the extra app blueprint step.
  • Improved package installation handling for apps that pin pnpm through Corepack, so Dyad’s install safety policy is less likely to be blocked by app-specific pnpm settings.
  • Dyad now includes jiti automatically when adding Nitro, avoiding a common missing dependency issue.

Feedback

This is a beta release, so feedback is especially helpful—particularly around the integrated terminal, thinking effort improvements, MCP OAuth support, Neon app deployment setup, and database migration warnings.

If you run into issues or have suggestions, please help us improve by reporting a bug or uploading a chat session.

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