diff --git a/.gitignore b/.gitignore
index 6c1dd97..2a2b503 100644
--- a/.gitignore
+++ b/.gitignore
@@ -18,6 +18,7 @@
 *.zip
 *.tar.gz
 *.rar
+.venv
 
 # virtual machine crash logs, see http://www.java.com/en/download/help/error_hotspot.xml
 hs_err_pid*
diff --git a/README.md b/README.md
index 0837ea2..85ab0d5 100644
--- a/README.md
+++ b/README.md
@@ -31,8 +31,22 @@ go build -o openmcpauthproxy ./cmd/proxy
 Allows you to just enable authentication and authorization for your MCP server with the preconfigured auth provider powered by Asgardeo.
 
 If you don’t have an MCP server, follow the instructions given here to start your own MCP server for testing purposes.
-1. Download [sample MCP server](resources/echo_server.py)
-2. Run the server with
+
+1. Navigate to `resources` directory.
+2. Initialize a virtual environment.
+
+```bash
+python3 -m venv .venv
+```
+
+3. Install dependencies.
+
+```
+pip3 install -r requirements.txt
+```
+
+4. Start the server.
+
 ```bash
 python3 echo_server.py
 ```
diff --git a/resources/requirements.txt b/resources/requirements.txt
new file mode 100644
index 0000000..102b728
--- /dev/null
+++ b/resources/requirements.txt
@@ -0,0 +1 @@
+fastmcp==0.4.1
\ No newline at end of file