diff --git a/src/memory/__tests__/server-version.test.ts b/src/memory/__tests__/server-version.test.ts
new file mode 100644
index 0000000000..f9cf437d52
--- /dev/null
+++ b/src/memory/__tests__/server-version.test.ts
@@ -0,0 +1,25 @@
+import { describe, it, expect } from 'vitest';
+import { createRequire } from 'node:module';
+import path from 'path';
+import { fileURLToPath } from 'url';
+import { resolvePackageVersion, SERVER_VERSION } from '../version.js';
+
+const packageJson = createRequire(import.meta.url)('../package.json') as { version: string };
+
+describe('server version', () => {
+  it('uses package.json version for serverInfo', () => {
+    expect(SERVER_VERSION).toBe(packageJson.version);
+    expect(resolvePackageVersion()).toBe(packageJson.version);
+  });
+
+  it('resolves package.json from the dist layout', () => {
+    const distDir = path.join(path.dirname(fileURLToPath(import.meta.url)), '..', 'dist');
+    const distVersionPath = path.join(distDir, 'version.js');
+
+    expect(() => createRequire(distVersionPath)('./version.js')).not.toThrow();
+    const distModule = createRequire(distVersionPath)('./version.js') as {
+      SERVER_VERSION: string;
+    };
+    expect(distModule.SERVER_VERSION).toBe(packageJson.version);
+  });
+});
diff --git a/src/memory/index.ts b/src/memory/index.ts
index 9865c5318e..0a9ce8ff0a 100644
--- a/src/memory/index.ts
+++ b/src/memory/index.ts
@@ -7,6 +7,7 @@ import { z } from "zod";
 import { promises as fs } from 'fs';
 import path from 'path';
 import { fileURLToPath } from 'url';
+import { SERVER_VERSION } from './version.js';
 
 // Define memory file path using environment variable with fallback
 export const defaultMemoryPath = path.join(path.dirname(fileURLToPath(import.meta.url)), 'memory.jsonl');
@@ -253,10 +254,9 @@ const RelationSchema = z.object({
   relationType: z.string().describe("The type of the relation")
 });
 
-// The server instance and tools exposed to Claude
 const server = new McpServer({
   name: "memory-server",
-  version: "0.6.3",
+  version: SERVER_VERSION,
 });
 
 const RESOURCE_URI = "memory://knowledge-graph";
diff --git a/src/memory/version.ts b/src/memory/version.ts
new file mode 100644
index 0000000000..f1df958a44
--- /dev/null
+++ b/src/memory/version.ts
@@ -0,0 +1,27 @@
+import { createRequire } from 'node:module';
+import path from 'path';
+import { fileURLToPath } from 'url';
+
+export function resolvePackageVersion(): string {
+  const require = createRequire(import.meta.url);
+  const moduleDir = path.dirname(fileURLToPath(import.meta.url));
+  const candidates = [
+    path.join(moduleDir, 'package.json'),
+    path.join(moduleDir, '..', 'package.json'),
+  ];
+
+  for (const candidate of candidates) {
+    try {
+      const pkg = require(candidate) as { version?: string };
+      if (pkg.version) {
+        return pkg.version;
+      }
+    } catch {
+      // Try the next candidate when running from dist/ or source.
+    }
+  }
+
+  throw new Error('Could not locate package.json for server version');
+}
+
+export const SERVER_VERSION = resolvePackageVersion();