diff --git a/workspaces/intelligent-assistant/.changeset/gentle-foxes-swim.md b/workspaces/intelligent-assistant/.changeset/gentle-foxes-swim.md
new file mode 100644
index 0000000000..6775029f09
--- /dev/null
+++ b/workspaces/intelligent-assistant/.changeset/gentle-foxes-swim.md
@@ -0,0 +1,5 @@
+---
+'@red-hat-developer-hub/backstage-plugin-intelligent-assistant': patch
+---
+
+Fix MCP settings panel layout in docked and overlay modes to fill available space and remove gray borders
diff --git a/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/LightSpeedChat.tsx b/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/LightSpeedChat.tsx
index c275ca126d..e5ca348f1a 100644
--- a/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/LightSpeedChat.tsx
+++ b/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/LightSpeedChat.tsx
@@ -451,35 +451,44 @@ const useStyles = makeStyles(theme => ({
   settingsFlat: {
     height: '100%',
     width: '100%',
+    flex: 1,
+    minHeight: 0,
     '&.pf-chatbot__settings-form-container': {
       background:
         'var(--pf-v6-c-table--BackgroundColor, var(--pf-t--global--background--color--primary--default))',
       padding: 0,
       margin: 0,
-      minHeight: '100%',
+      minHeight: 0,
+      flex: 1,
       display: 'flex',
       flexDirection: 'column',
+      justifyContent: 'flex-start',
       width: '100%',
       maxWidth: 'none',
+      overflow: 'hidden',
+      border: 'none',
     },
     '& .pf-chatbot__settings-form': {
       margin: 0,
       padding: 0,
       background:
         'var(--pf-v6-c-table--BackgroundColor, var(--pf-t--global--background--color--primary--default))',
-      minHeight: '100%',
+      minHeight: 0,
+      flex: 1,
       display: 'flex',
       flexDirection: 'column',
       width: '100%',
       maxWidth: 'none',
+      border: 'none',
     },
     '& .pf-chatbot__settings-form-row': {
       background:
         'var(--pf-v6-c-table--BackgroundColor, var(--pf-t--global--background--color--primary--default))',
-      border: 0,
+      border: 'none',
       margin: 0,
       padding: 0,
-      minHeight: '100%',
+      minHeight: 0,
+      flex: 1,
       display: 'flex',
       flexDirection: 'column',
       width: '100%',
diff --git a/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/McpServersSettings.tsx b/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/McpServersSettings.tsx
index d7639a7d44..23c0f857ae 100644
--- a/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/McpServersSettings.tsx
+++ b/workspaces/intelligent-assistant/plugins/intelligent-assistant/src/components/McpServersSettings.tsx
@@ -70,7 +70,8 @@ const useStyles = makeStyles(theme => ({
   root: {
     padding: 0,
     height: '100%',
-    minHeight: '100%',
+    minHeight: 0,
+    flex: 1,
     width: '100%',
     overflow: 'auto',
   },