diff --git a/packages/cli/src/ui/components/views/McpStatus.test.tsx b/packages/cli/src/ui/components/views/McpStatus.test.tsx
index 3df80360ab..30b15da310 100644
--- a/packages/cli/src/ui/components/views/McpStatus.test.tsx
+++ b/packages/cli/src/ui/components/views/McpStatus.test.tsx
@@ -202,6 +202,30 @@ describe('McpStatus', () => {
     unmount();
   });
 
+  it('filters blocked servers case-insensitively and ignores whitespace', async () => {
+    const { lastFrame, unmount } = await render(
+      <McpStatus
+        {...baseProps}
+        servers={{
+          'SERVER-1 ': {
+            url: 'http://localhost:8080',
+            description: 'A test server',
+          },
+          ' server-2': {
+            url: 'http://localhost:8081',
+            description: 'A blocked server',
+          },
+        }}
+        blockedServers={[
+          { name: ' server-1', extensionName: 'test-extension' },
+          { name: 'SERVER-2 ', extensionName: 'test-extension' },
+        ]}
+      />,
+    );
+    expect(lastFrame()).toMatchSnapshot();
+    unmount();
+  });
+
   it('renders only blocked servers when no configured servers exist', async () => {
     const { lastFrame, unmount } = await render(
       <McpStatus
diff --git a/packages/cli/src/ui/components/views/McpStatus.tsx b/packages/cli/src/ui/components/views/McpStatus.tsx
index 1f14c0b5c5..c2697bca1c 100644
--- a/packages/cli/src/ui/components/views/McpStatus.tsx
+++ b/packages/cli/src/ui/components/views/McpStatus.tsx
@@ -50,7 +50,9 @@ export const McpStatus: React.FC<McpStatusProps> = ({
   const serverNames = Object.keys(servers).filter(
     (serverName) =>
       !blockedServers.some(
-        (blockedServer) => blockedServer.name === serverName,
+        (blockedServer) =>
+          blockedServer.name.trim().toLowerCase() ===
+          serverName.trim().toLowerCase(),
       ),
   );
 
diff --git a/packages/cli/src/ui/components/views/__snapshots__/McpStatus.test.tsx.snap b/packages/cli/src/ui/components/views/__snapshots__/McpStatus.test.tsx.snap
index 71a34c5026..c0f620318e 100644
--- a/packages/cli/src/ui/components/views/__snapshots__/McpStatus.test.tsx.snap
+++ b/packages/cli/src/ui/components/views/__snapshots__/McpStatus.test.tsx.snap
@@ -1,5 +1,14 @@
 // Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
 
+exports[`McpStatus > filters blocked servers case-insensitively and ignores whitespace 1`] = `
+"Configured MCP servers:
+
+🔴  server-1 (from test-extension) - Blocked
+
+🔴 SERVER-2  (from test-extension) - Blocked
+"
+`;
+
 exports[`McpStatus > renders correctly when discovery is in progress 1`] = `
 "⏳ MCP servers are starting up (0 initializing)...
 Note: First startup may take longer. Tool availability will update automatically.