diff --git a/package.json b/package.json
index b6a48a0..6c97be9 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@parseable/parseable-mcp-server",
-  "version": "0.2.9",
+  "version": "0.2.10",
   "description": "Model Context Protocol server for Parseable. Lets LLMs discover and query Parseable datasets.",
   "repository": {
     "type": "git",
diff --git a/src/bootstrap.ts b/src/bootstrap.ts
index 7b3f1fe..83f564e 100644
--- a/src/bootstrap.ts
+++ b/src/bootstrap.ts
@@ -5,7 +5,7 @@ import { tools } from "./tools/index.js";
 import type { ToolContext } from "./tools/types.js";
 import { errorResult, jsonResult } from "./tools/types.js";
 
-const SERVER_VERSION = "0.2.9";
+const SERVER_VERSION = "0.2.10";
 
 export function buildMcpServer(ctx: ToolContext): McpServer {
   const server = new McpServer({
diff --git a/src/init.ts b/src/init.ts
index c017c93..9b050aa 100644
--- a/src/init.ts
+++ b/src/init.ts
@@ -11,11 +11,20 @@ export interface ClientTarget {
 }
 
 export interface InitArgs {
+  mode?: ParseableMode;
   url?: string;
   apiKey?: string;
   client?: string;
 }
 
+export type ParseableMode = "cloud" | "self-hosted";
+
+export type InitCredentials =
+  | { mode: "cloud"; apiKey: string }
+  | { mode: "self-hosted"; url: string; apiKey: string };
+
+const CLOUD_MCP_URL = "https://mcp.parseable.com/mcp";
+
 export function getClientTargets(
   home: string = homedir(),
   plat: string = platform(),
@@ -72,7 +81,9 @@ export function parseInitArgs(argv: string[]): InitArgs {
   const args: InitArgs = {};
   for (let i = 0; i < argv.length; i++) {
     const a = argv[i];
-    if (a === "--url" && argv[i + 1]) args.url = argv[++i];
+    if (a === "--mode" && (argv[i + 1] === "cloud" || argv[i + 1] === "self-hosted")) {
+      args.mode = argv[++i] as ParseableMode;
+    } else if (a === "--url" && argv[i + 1]) args.url = argv[++i];
     else if (a === "--api-key" && argv[i + 1]) args.apiKey = argv[++i];
     else if (a === "--client" && argv[i + 1]) args.client = argv[++i];
   }
@@ -82,23 +93,33 @@ export function parseInitArgs(argv: string[]): InitArgs {
 export function mergeConfig(
   existing: Record<string, unknown>,
   configKey: "mcpServers" | "servers",
-  creds: { url: string; apiKey: string },
+  creds: InitCredentials,
 ): Record<string, unknown> {
-  const entry = {
-    command: "npx",
-    args: ["-y", "@parseable/parseable-mcp-server"],
-    env: {
-      PARSEABLE_URL: creds.url,
-      PARSEABLE_API_KEY: creds.apiKey,
-    },
-  };
+  const entry =
+    creds.mode === "cloud"
+      ? {
+          type: "http",
+          url: CLOUD_MCP_URL,
+          headers: {
+            "X-Parseable-Mode": "cloud",
+            "X-API-Key": creds.apiKey,
+          },
+        }
+      : {
+          command: "npx",
+          args: ["-y", "@parseable/parseable-mcp-server"],
+          env: {
+            PARSEABLE_URL: creds.url,
+            PARSEABLE_API_KEY: creds.apiKey,
+          },
+        };
 
   const servers = (existing[configKey] as Record<string, unknown>) ?? {};
   servers.Parseable = entry;
   return { ...existing, [configKey]: servers };
 }
 
-function writeClientConfig(target: ClientTarget, creds: { url: string; apiKey: string }): void {
+function writeClientConfig(target: ClientTarget, creds: InitCredentials): void {
   let existing: Record<string, unknown> = {};
   if (existsSync(target.configPath)) {
     try {
@@ -154,18 +175,35 @@ export async function runInit(argv: string[] = process.argv.slice(3)): Promise<v
     selectedTarget = match;
   }
 
-  // 2. Credentials
+  // 2. Mode and credentials
+  let mode = args.mode;
+  if (!mode) {
+    const modeAnswer = await inquirer.prompt<{ mode: ParseableMode }>([
+      {
+        type: "select",
+        name: "mode",
+        message: "Select deployment mode:",
+        choices: [
+          { name: "Parseable Cloud", value: "cloud" },
+          { name: "Self-hosted", value: "self-hosted" },
+        ],
+      },
+    ]);
+    mode = modeAnswer.mode;
+  }
+
   const answers = await inquirer.prompt<{
     url: string;
     apiKey: string;
   }>(
     [
-      !args.url && {
-        type: "input",
-        name: "url",
-        message: "Parseable URL:",
-        validate: (v: string) => v.trim().length > 0 || "URL is required",
-      },
+      mode === "self-hosted" &&
+        !args.url && {
+          type: "input",
+          name: "url",
+          message: "Parseable URL:",
+          validate: (v: string) => v.trim().length > 0 || "URL is required",
+        },
       !args.apiKey && {
         type: "password",
         name: "apiKey",
@@ -176,10 +214,9 @@ export async function runInit(argv: string[] = process.argv.slice(3)): Promise<v
     ].filter(Boolean) as Parameters<typeof inquirer.prompt>[0],
   );
 
-  const creds = {
-    url: args.url ?? answers.url,
-    apiKey: args.apiKey ?? answers.apiKey,
-  };
+  const apiKey = args.apiKey ?? answers.apiKey;
+  const creds: InitCredentials =
+    mode === "cloud" ? { mode, apiKey } : { mode, url: args.url ?? answers.url, apiKey };
 
   // 3. Write
   try {
diff --git a/test/init.test.ts b/test/init.test.ts
index f0a3d6d..2174e1f 100644
--- a/test/init.test.ts
+++ b/test/init.test.ts
@@ -2,9 +2,19 @@ import { describe, expect, it } from "vitest";
 import { getClientTargets, mergeConfig, parseInitArgs } from "../src/init.js";
 
 describe("parseInitArgs", () => {
-  it("parses --url --api-key --client", () => {
-    const a = parseInitArgs(["--url", "http://x", "--api-key", "key", "--client", "cursor"]);
+  it("parses --mode --url --api-key --client", () => {
+    const a = parseInitArgs([
+      "--mode",
+      "self-hosted",
+      "--url",
+      "http://x",
+      "--api-key",
+      "key",
+      "--client",
+      "cursor",
+    ]);
     expect(a).toEqual({
+      mode: "self-hosted",
       url: "http://x",
       apiKey: "key",
       client: "cursor",
@@ -78,7 +88,7 @@ describe("getClientTargets", () => {
 });
 
 describe("mergeConfig", () => {
-  const creds = { url: "http://x", apiKey: "key" };
+  const creds = { mode: "self-hosted" as const, url: "http://x", apiKey: "key" };
 
   it("adds Parseable entry under mcpServers", () => {
     const merged = mergeConfig({}, "mcpServers", creds);
@@ -102,6 +112,22 @@ describe("mergeConfig", () => {
     expect(merged.mcpServers).toBeUndefined();
   });
 
+  it("adds hosted HTTP entry for cloud mode without a Parseable URL", () => {
+    const merged = mergeConfig({}, "mcpServers", { mode: "cloud", apiKey: "cloud-key" });
+    expect(merged).toEqual({
+      mcpServers: {
+        Parseable: {
+          type: "http",
+          url: "https://mcp.parseable.com/mcp",
+          headers: {
+            "X-Parseable-Mode": "cloud",
+            "X-API-Key": "cloud-key",
+          },
+        },
+      },
+    });
+  });
+
   it("preserves other top-level keys", () => {
     const merged = mergeConfig(
       { mcpServers: {}, preferences: { theme: "dark" } },
@@ -126,7 +152,7 @@ describe("mergeConfig", () => {
     const merged = mergeConfig(
       { mcpServers: { Parseable: { command: "node", args: ["old.js"] } } },
       "mcpServers",
-      { url: "http://new", apiKey: "key" },
+      { mode: "self-hosted", url: "http://new", apiKey: "key" },
     );
     const servers = merged.mcpServers as Record<string, unknown>;
     const parseable = servers.Parseable as { env: Record<string, string> };