diff --git a/src/parser/extract-tools.ts b/src/parser/extract-tools.ts
index 6371623..18aec7f 100644
--- a/src/parser/extract-tools.ts
+++ b/src/parser/extract-tools.ts
@@ -80,8 +80,10 @@ export function extractToolsFromApi(
         operation.description || operation.summary || `Executes ${method.toUpperCase()} ${path}`;
 
       // Generate input schema and extract parameters
-      const { inputSchema, parameters, requestBodyContentType } =
-        generateInputSchemaAndDetails(operation);
+      const { inputSchema, parameters, requestBodyContentType } = generateInputSchemaAndDetails(
+        operation,
+        pathItem.parameters
+      );
 
       // Extract parameter details for execution
       const executionParameters = parameters.map((p) => ({ name: p.name, in: p.in }));
@@ -113,9 +115,13 @@ export function extractToolsFromApi(
  * Generates input schema and extracts parameter details from an operation
  *
  * @param operation OpenAPI operation object
+ * @param pathParameters Optional path-level parameters that apply to all operations in the path
  * @returns Input schema, parameters, and request body content type
  */
-export function generateInputSchemaAndDetails(operation: OpenAPIV3.OperationObject): {
+export function generateInputSchemaAndDetails(
+  operation: OpenAPIV3.OperationObject,
+  pathParameters?: (OpenAPIV3.ParameterObject | OpenAPIV3.ReferenceObject)[]
+): {
   inputSchema: JSONSchema7 | boolean;
   parameters: OpenAPIV3.ParameterObject[];
   requestBodyContentType?: string;
@@ -123,11 +129,32 @@ export function generateInputSchemaAndDetails(operation: OpenAPIV3.OperationObje
   const properties: { [key: string]: JSONSchema7 | boolean } = {};
   const required: string[] = [];
 
-  // Process parameters
-  const allParameters: OpenAPIV3.ParameterObject[] = Array.isArray(operation.parameters)
+  // Process parameters - merge path parameters with operation parameters
+  const operationParameters: OpenAPIV3.ParameterObject[] = Array.isArray(operation.parameters)
     ? operation.parameters.map((p) => p as OpenAPIV3.ParameterObject)
     : [];
 
+  const pathParametersResolved: OpenAPIV3.ParameterObject[] = Array.isArray(pathParameters)
+    ? pathParameters.map((p) => p as OpenAPIV3.ParameterObject)
+    : [];
+
+  // Combine path parameters and operation parameters
+  // Operation parameters override path parameters if they have the same name/location
+  const allParameters: OpenAPIV3.ParameterObject[] = [];
+
+  pathParametersResolved.concat(operationParameters).forEach((param) => {
+    const existingIndex = allParameters.findIndex(
+      (pathParam) => pathParam.name === param.name && pathParam.in === param.in
+    );
+    if (existingIndex >= 0) {
+      // Override path parameter with operation parameter
+      allParameters[existingIndex] = param;
+    } else {
+      // Add new operation parameter
+      allParameters.push(param);
+    }
+  });
+
   allParameters.forEach((param) => {
     if (!param.name || !param.schema) return;