Document FastMCP server instructions

Author: MukundaKatta

README.md

@@ -372,6 +372,36 @@ async def long_running_task(task_name: str, ctx: Context[ServerSession, None], s
 _Full example: [examples/snippets/servers/tool_progress.py](https://github.com/modelcontextprotocol/python-sdk/blob/main/examples/snippets/servers/tool_progress.py)_
 <!-- /snippet-source -->
 
+#### Server Instructions
+
+Use `instructions` to tell clients how the server's tools and resources fit
+together. These instructions are returned in the server's `InitializeResult`,
+which lets clients surface workflow guidance before the model calls any tools.
+
+Instructions are useful when a server has related tools that should be used in a
+particular order, or when tools are grouped by domain and need extra context.
+
+```python
+from mcp.server.fastmcp import FastMCP
+
+mcp = FastMCP(
+    name="Inventory",
+    instructions=(
+        "Use lookup_item before update_stock. "
+        "Use create_purchase_order only after confirming supplier availability."
+    ),
+)
+```
+
+Clients can read the same value after initialization:
+
+```python
+from mcp import Client
+
+async with Client(mcp) as client:
+    print(client.initialize_result.instructions)
+```
+
 #### Structured Output
 
 Tools will return structured results by default, if their return type