diff --git a/src/cli/commands/add/__tests__/actions.test.ts b/src/cli/commands/add/__tests__/actions.test.ts
index 852523bc..0fffde89 100644
--- a/src/cli/commands/add/__tests__/actions.test.ts
+++ b/src/cli/commands/add/__tests__/actions.test.ts
@@ -1,6 +1,15 @@
 import { buildGatewayTargetConfig } from '../actions.js';
 import type { ValidatedAddGatewayTargetOptions } from '../actions.js';
-import { describe, expect, it } from 'vitest';
+import { afterEach, describe, expect, it, vi } from 'vitest';
+
+const mockCreateToolFromWizard = vi.fn().mockResolvedValue({ toolName: 'test', projectPath: '/tmp' });
+const mockCreateExternalGatewayTarget = vi.fn().mockResolvedValue({ toolName: 'test', projectPath: '' });
+
+vi.mock('../../../operations/mcp/create-mcp', () => ({
+  createToolFromWizard: (...args: unknown[]) => mockCreateToolFromWizard(...args),
+  createExternalGatewayTarget: (...args: unknown[]) => mockCreateExternalGatewayTarget(...args),
+  createGatewayFromWizard: vi.fn(),
+}));
 
 describe('buildGatewayTargetConfig', () => {
   it('maps name, gateway, language correctly', () => {
@@ -66,3 +75,26 @@ describe('buildGatewayTargetConfig', () => {
     expect(config.outboundAuth).toBeUndefined();
   });
 });
+
+// Dynamic import to pick up mocks
+const { handleAddGatewayTarget } = await import('../actions.js');
+
+describe('handleAddGatewayTarget', () => {
+  afterEach(() => vi.clearAllMocks());
+
+  it('routes existing-endpoint to createExternalGatewayTarget', async () => {
+    const options: ValidatedAddGatewayTargetOptions = {
+      name: 'test-tool',
+      language: 'Other',
+      host: 'Lambda',
+      source: 'existing-endpoint',
+      endpoint: 'https://example.com/mcp',
+      gateway: 'my-gw',
+    };
+
+    await handleAddGatewayTarget(options);
+
+    expect(mockCreateExternalGatewayTarget).toHaveBeenCalledOnce();
+    expect(mockCreateToolFromWizard).not.toHaveBeenCalled();
+  });
+});
diff --git a/src/cli/commands/add/__tests__/validate.test.ts b/src/cli/commands/add/__tests__/validate.test.ts
index e9a7992a..40f5dfec 100644
--- a/src/cli/commands/add/__tests__/validate.test.ts
+++ b/src/cli/commands/add/__tests__/validate.test.ts
@@ -422,6 +422,18 @@ describe('validate', () => {
       expect(result.valid).toBe(false);
       expect(result.error).toContain('--credential-name is required');
     });
+
+    it('rejects --host with existing-endpoint', async () => {
+      const options: AddGatewayTargetOptions = {
+        name: 'test-tool',
+        source: 'existing-endpoint',
+        endpoint: 'https://example.com/mcp',
+        host: 'Lambda',
+      };
+      const result = await validateAddGatewayTargetOptions(options);
+      expect(result.valid).toBe(false);
+      expect(result.error).toBe('--host is not applicable for existing endpoint targets');
+    });
   });
 
   describe('validateAddMemoryOptions', () => {
diff --git a/src/cli/commands/add/actions.ts b/src/cli/commands/add/actions.ts
index 6d28bfc7..0e2543f9 100644
--- a/src/cli/commands/add/actions.ts
+++ b/src/cli/commands/add/actions.ts
@@ -23,7 +23,11 @@ import {
   createCredential,
   resolveCredentialStrategy,
 } from '../../operations/identity/create-identity';
-import { createGatewayFromWizard, createToolFromWizard } from '../../operations/mcp/create-mcp';
+import {
+  createExternalGatewayTarget,
+  createGatewayFromWizard,
+  createToolFromWizard,
+} from '../../operations/mcp/create-mcp';
 import { createMemory } from '../../operations/memory/create-memory';
 import { createRenderer } from '../../templates';
 import type { MemoryOption } from '../../tui/screens/generate/types';
@@ -334,6 +338,10 @@ export async function handleAddGatewayTarget(
     }
 
     const config = buildGatewayTargetConfig(options);
+    if (config.source === 'existing-endpoint') {
+      const result = await createExternalGatewayTarget(config);
+      return { success: true, toolName: result.toolName };
+    }
     const result = await createToolFromWizard(config);
     return { success: true, toolName: result.toolName, sourcePath: result.projectPath };
   } catch (err) {
diff --git a/src/cli/commands/add/validate.ts b/src/cli/commands/add/validate.ts
index d7cbc802..2731ed83 100644
--- a/src/cli/commands/add/validate.ts
+++ b/src/cli/commands/add/validate.ts
@@ -198,6 +198,9 @@ export async function validateAddGatewayTargetOptions(options: AddGatewayTargetO
   }
 
   if (options.source === 'existing-endpoint') {
+    if (options.host) {
+      return { valid: false, error: '--host is not applicable for existing endpoint targets' };
+    }
     if (!options.endpoint) {
       return { valid: false, error: '--endpoint is required when source is existing-endpoint' };
     }
diff --git a/src/cli/tui/screens/mcp/AddGatewayTargetScreen.tsx b/src/cli/tui/screens/mcp/AddGatewayTargetScreen.tsx
index f8a2522e..0c811d43 100644
--- a/src/cli/tui/screens/mcp/AddGatewayTargetScreen.tsx
+++ b/src/cli/tui/screens/mcp/AddGatewayTargetScreen.tsx
@@ -4,14 +4,8 @@ import type { SelectableItem } from '../../components';
 import { HELP_TEXT } from '../../constants';
 import { useListNavigation } from '../../hooks';
 import { generateUniqueName } from '../../utils';
-import type { AddGatewayTargetConfig, ComputeHost, TargetLanguage } from './types';
-import {
-  COMPUTE_HOST_OPTIONS,
-  MCP_TOOL_STEP_LABELS,
-  SKIP_FOR_NOW,
-  SOURCE_OPTIONS,
-  TARGET_LANGUAGE_OPTIONS,
-} from './types';
+import type { AddGatewayTargetConfig } from './types';
+import { MCP_TOOL_STEP_LABELS, SKIP_FOR_NOW } from './types';
 import { useAddGatewayTargetWizard } from './useAddGatewayTargetWizard';
 import { Box, Text } from 'ink';
 import React, { useMemo } from 'react';
@@ -31,16 +25,6 @@ export function AddGatewayTargetScreen({
 }: AddGatewayTargetScreenProps) {
   const wizard = useAddGatewayTargetWizard(existingGateways);
 
-  const sourceItems: SelectableItem[] = useMemo(
-    () => SOURCE_OPTIONS.map(o => ({ id: o.id, title: o.title, description: o.description })),
-    []
-  );
-
-  const languageItems: SelectableItem[] = useMemo(
-    () => TARGET_LANGUAGE_OPTIONS.map(o => ({ id: o.id, title: o.title, description: o.description })),
-    []
-  );
-
   const gatewayItems: SelectableItem[] = useMemo(
     () => [
       ...existingGateways.map(g => ({ id: g, title: g })),
@@ -49,33 +33,11 @@ export function AddGatewayTargetScreen({
     [existingGateways]
   );
 
-  const hostItems: SelectableItem[] = useMemo(
-    () => COMPUTE_HOST_OPTIONS.map(o => ({ id: o.id, title: o.title, description: o.description })),
-    []
-  );
-
-  const isSourceStep = wizard.step === 'source';
-  const isLanguageStep = wizard.step === 'language';
   const isGatewayStep = wizard.step === 'gateway';
-  const isHostStep = wizard.step === 'host';
   const isTextStep = wizard.step === 'name' || wizard.step === 'endpoint';
   const isConfirmStep = wizard.step === 'confirm';
   const noGatewaysAvailable = isGatewayStep && existingGateways.length === 0;
 
-  const sourceNav = useListNavigation({
-    items: sourceItems,
-    onSelect: item => wizard.setSource(item.id as 'existing-endpoint' | 'create-new'),
-    onExit: () => wizard.goBack(),
-    isActive: isSourceStep,
-  });
-
-  const languageNav = useListNavigation({
-    items: languageItems,
-    onSelect: item => wizard.setLanguage(item.id as TargetLanguage),
-    onExit: () => onExit(),
-    isActive: isLanguageStep,
-  });
-
   const gatewayNav = useListNavigation({
     items: gatewayItems,
     onSelect: item => wizard.setGateway(item.id),
@@ -83,13 +45,6 @@ export function AddGatewayTargetScreen({
     isActive: isGatewayStep && !noGatewaysAvailable,
   });
 
-  const hostNav = useListNavigation({
-    items: hostItems,
-    onSelect: item => wizard.setHost(item.id as ComputeHost),
-    onExit: () => wizard.goBack(),
-    isActive: isHostStep,
-  });
-
   useListNavigation({
     items: [{ id: 'confirm', title: 'Confirm' }],
     onSelect: () => onComplete(wizard.config),
@@ -108,19 +63,6 @@ export function AddGatewayTargetScreen({
   return (
     <Screen title="Add MCP Tool" onExit={onExit} helpText={helpText} headerContent={headerContent}>
       <Panel>
-        {isSourceStep && (
-          <WizardSelect
-            title="Select source"
-            description="How would you like to create this MCP tool?"
-            items={sourceItems}
-            selectedIndex={sourceNav.selectedIndex}
-          />
-        )}
-
-        {isLanguageStep && (
-          <WizardSelect title="Select language" items={languageItems} selectedIndex={languageNav.selectedIndex} />
-        )}
-
         {isGatewayStep && !noGatewaysAvailable && (
           <WizardSelect
             title="Select gateway"
@@ -132,15 +74,6 @@ export function AddGatewayTargetScreen({
 
         {noGatewaysAvailable && <NoGatewaysMessage />}
 
-        {isHostStep && (
-          <WizardSelect
-            title="Select compute host"
-            description="Where will this tool run?"
-            items={hostItems}
-            selectedIndex={hostNav.selectedIndex}
-          />
-        )}
-
         {isTextStep && (
           <TextInput
             key={wizard.step}
diff --git a/src/cli/tui/screens/mcp/useAddGatewayTargetWizard.ts b/src/cli/tui/screens/mcp/useAddGatewayTargetWizard.ts
index 29aa54ac..9a60cc7d 100644
--- a/src/cli/tui/screens/mcp/useAddGatewayTargetWizard.ts
+++ b/src/cli/tui/screens/mcp/useAddGatewayTargetWizard.ts
@@ -1,19 +1,15 @@
 import { APP_DIR, MCP_APP_SUBDIR } from '../../../../lib';
 import type { ToolDefinition } from '../../../../schema';
-import type { AddGatewayTargetConfig, AddGatewayTargetStep, ComputeHost, TargetLanguage } from './types';
+import type { AddGatewayTargetConfig, AddGatewayTargetStep } from './types';
 import { SKIP_FOR_NOW } from './types';
 import { useCallback, useMemo, useState } from 'react';
 
 /**
- * Dynamic steps based on source.
- * - Existing endpoint: name → source → endpoint → gateway → confirm
- * - Create new: name → source → language → gateway → host → confirm
+ * Steps for adding a gateway target (existing endpoint only).
+ * name → endpoint → gateway → confirm
  */
-function getSteps(source?: 'existing-endpoint' | 'create-new'): AddGatewayTargetStep[] {
-  if (source === 'existing-endpoint') {
-    return ['name', 'source', 'endpoint', 'gateway', 'confirm'];
-  }
-  return ['name', 'source', 'language', 'gateway', 'host', 'confirm'];
+function getSteps(): AddGatewayTargetStep[] {
+  return ['name', 'endpoint', 'gateway', 'confirm'];
 }
 
 function deriveToolDefinition(name: string): ToolDefinition {
@@ -29,6 +25,7 @@ function getDefaultConfig(): AddGatewayTargetConfig {
     name: '',
     description: '',
     sourcePath: '',
+    source: 'existing-endpoint',
     language: 'Python',
     host: 'Lambda',
     toolDefinition: deriveToolDefinition(''),
@@ -39,16 +36,15 @@ export function useAddGatewayTargetWizard(existingGateways: string[] = []) {
   const [config, setConfig] = useState<AddGatewayTargetConfig>(getDefaultConfig);
   const [step, setStep] = useState<AddGatewayTargetStep>('name');
 
-  const steps = useMemo(() => getSteps(config.source), [config.source]);
+  const steps = useMemo(() => getSteps(), []);
   const currentIndex = steps.indexOf(step);
 
   const goBack = useCallback(() => {
-    // Recalculate steps in case source changed
-    const currentSteps = getSteps(config.source);
+    const currentSteps = getSteps();
     const idx = currentSteps.indexOf(step);
     const prevStep = currentSteps[idx - 1];
     if (prevStep) setStep(prevStep);
-  }, [config.source, step]);
+  }, [step]);
 
   const setName = useCallback((name: string) => {
     setConfig(c => ({
@@ -58,19 +54,7 @@ export function useAddGatewayTargetWizard(existingGateways: string[] = []) {
       sourcePath: `${APP_DIR}/${MCP_APP_SUBDIR}/${name}`,
       toolDefinition: deriveToolDefinition(name),
     }));
-    setStep('source');
-  }, []);
-
-  const setSource = useCallback((source: 'existing-endpoint' | 'create-new') => {
-    setConfig(c => ({
-      ...c,
-      source,
-    }));
-    if (source === 'existing-endpoint') {
-      setStep('endpoint');
-    } else {
-      setStep('language');
-    }
+    setStep('endpoint');
   }, []);
 
   const setEndpoint = useCallback((endpoint: string) => {
@@ -81,35 +65,14 @@ export function useAddGatewayTargetWizard(existingGateways: string[] = []) {
     setStep('gateway');
   }, []);
 
-  const setLanguage = useCallback((language: TargetLanguage) => {
-    setConfig(c => ({
-      ...c,
-      language,
-    }));
-    setStep('gateway');
-  }, []);
-
   const setGateway = useCallback((gateway: string) => {
     setConfig(c => {
-      const isExternal = c.source === 'existing-endpoint';
       const isSkipped = gateway === SKIP_FOR_NOW;
-      if (isExternal || isSkipped) {
-        setStep('confirm');
-      } else {
-        setStep('host');
-      }
+      setStep('confirm');
       return { ...c, gateway: isSkipped ? undefined : gateway };
     });
   }, []);
 
-  const setHost = useCallback((host: ComputeHost) => {
-    setConfig(c => ({
-      ...c,
-      host,
-    }));
-    setStep('confirm');
-  }, []);
-
   const reset = useCallback(() => {
     setConfig(getDefaultConfig());
     setStep('name');
@@ -123,11 +86,8 @@ export function useAddGatewayTargetWizard(existingGateways: string[] = []) {
     existingGateways,
     goBack,
     setName,
-    setSource,
     setEndpoint,
-    setLanguage,
     setGateway,
-    setHost,
     reset,
   };
 }