diff --git a/cli.py b/cli.py
index a289e3ab2..23487041f 100644
--- a/cli.py
+++ b/cli.py
@@ -6088,7 +6088,8 @@ class HermesCLI:
             print(f"  Reloaded .env ({count} var(s) updated)")
         elif canonical == "reload-mcp":
             with self._busy_command(self._slow_command_status(cmd_original)):
-                self._reload_mcp()
+                if not self._reload_mcp():
+                    print("  ⚠️  MCP reload did not complete cleanly; see errors above.")
         elif canonical == "browser":
             self._handle_browser_command(cmd_original)
         elif canonical == "plugins":
@@ -7222,8 +7223,10 @@ class HermesCLI:
         if mtime == self._config_mtime:
             return  # File unchanged — fast path
 
-        # File changed — check whether mcp_servers section changed
-        self._config_mtime = mtime
+        # File changed — check whether mcp_servers section changed.
+        # Do not advance _config_mtime until we have parsed YAML and decided
+        # what to do; on MCP reload failure, leave mtime stale so the next
+        # poll retries (issue #14716).
         try:
             with open(cfg_path, encoding="utf-8") as f:
                 new_cfg = _yaml.safe_load(f) or {}
@@ -7232,27 +7235,43 @@ class HermesCLI:
 
         new_mcp = new_cfg.get("mcp_servers") or {}
         if new_mcp == self._config_mcp_servers:
+            # Another section changed — consume the mtime bump without reloading.
+            self._config_mtime = mtime
             return  # mcp_servers unchanged (some other section was edited)
 
-        self._config_mcp_servers = new_mcp
+        old_mtime = self._config_mtime
         # Notify user and reload.  Run in a separate thread with a hard
         # timeout so a hung MCP server cannot block the process_loop
         # indefinitely (which would freeze the entire TUI).
         print()
         print("🔄 MCP server config changed — reloading connections...")
-        _reload_thread = threading.Thread(
-            target=self._reload_mcp, daemon=True
-        )
+        outcome = [None]  # Optional[bool]: True/False from _reload_mcp
+
+        def _run_reload() -> None:
+            outcome[0] = self._reload_mcp()
+
+        _reload_thread = threading.Thread(target=_run_reload, daemon=True)
         _reload_thread.start()
         _reload_thread.join(timeout=30)
         if _reload_thread.is_alive():
             print("  ⚠️  MCP reload timed out (30s). Some servers may not have reconnected.")
+            self._config_mtime = old_mtime
+            return
+        if outcome[0]:
+            self._config_mcp_servers = new_mcp
+            self._config_mtime = mtime
+        else:
+            print("  ⚠️  MCP reload failed — will retry on the next config check.")
+            self._config_mtime = old_mtime
 
-    def _reload_mcp(self):
+    def _reload_mcp(self) -> bool:
         """Reload MCP servers: disconnect all, re-read config.yaml, reconnect.
 
         After reconnecting, refreshes the agent's tool list so the model
         sees the updated tools on the next turn.
+
+        Returns:
+            True if reload completed without error, False otherwise.
         """
         try:
             from tools.mcp_tool import shutdown_mcp_servers, discover_mcp_tools, _servers, _lock
@@ -7329,9 +7348,11 @@ class HermesCLI:
                     pass  # Best-effort
 
             print(f"  ✅ Agent updated — {len(self.agent.tools if self.agent else [])} tool(s) available")
+            return True
 
         except Exception as e:
             print(f"  ❌ MCP reload failed: {e}")
+            return False
 
     # ====================================================================
     # Tool-call generation indicator (shown during streaming)
diff --git a/tests/cli/test_cli_mcp_config_watch.py b/tests/cli/test_cli_mcp_config_watch.py
index 067ecc4cf..6123c4e48 100644
--- a/tests/cli/test_cli_mcp_config_watch.py
+++ b/tests/cli/test_cli_mcp_config_watch.py
@@ -101,3 +101,36 @@ class TestMCPConfigWatch:
             obj._check_config_mcp_changes()  # should not raise
 
         obj._reload_mcp.assert_not_called()
+
+    def test_failed_reload_leaves_mcp_snapshot_and_retries_mtime(self, tmp_path):
+        """Failed _reload_mcp must not record new mcp_servers as applied (#14716)."""
+        import yaml
+        obj, cfg_file = _make_cli(tmp_path, mcp_servers={})
+        cfg_file.write_text(yaml.dump({"mcp_servers": {"demo": {"command": "echo"}}}))
+        obj._config_mtime = 0.0
+        before_servers = dict(obj._config_mcp_servers)
+
+        obj._reload_mcp = MagicMock(return_value=False)
+
+        with patch("hermes_cli.config.get_config_path", return_value=cfg_file):
+            obj._check_config_mcp_changes()
+
+        obj._reload_mcp.assert_called_once()
+        assert obj._config_mcp_servers == before_servers
+        assert obj._config_mtime == 0.0
+
+    def test_successful_reload_updates_mcp_snapshot(self, tmp_path):
+        """When reload returns True, applied mcp_servers matches config file."""
+        import yaml
+        obj, cfg_file = _make_cli(tmp_path, mcp_servers={})
+        new_yaml = {"mcp_servers": {"demo": {"command": "echo"}}}
+        cfg_file.write_text(yaml.dump(new_yaml))
+        obj._config_mtime = 0.0
+
+        obj._reload_mcp = MagicMock(return_value=True)
+
+        with patch("hermes_cli.config.get_config_path", return_value=cfg_file):
+            obj._check_config_mcp_changes()
+
+        assert obj._config_mcp_servers == new_yaml["mcp_servers"]
+        assert obj._config_mtime == cfg_file.stat().st_mtime