diff --git a/.changeset/oauth-error-http200.md b/.changeset/oauth-error-http200.md
new file mode 100644
index 000000000..1ce4fdd9e
--- /dev/null
+++ b/.changeset/oauth-error-http200.md
@@ -0,0 +1,7 @@
+---
+'@modelcontextprotocol/client': patch
+---
+
+Fix OAuth error handling for servers returning errors with HTTP 200 status
+
+Some OAuth servers (e.g., GitHub) return error responses with HTTP 200 status instead of 4xx. The SDK now checks for an `error` field in the JSON response before attempting to parse it as tokens, providing users with meaningful error messages.
diff --git a/packages/client/src/client/auth.ts b/packages/client/src/client/auth.ts
index 2946f3f41..4589fcda2 100644
--- a/packages/client/src/client/auth.ts
+++ b/packages/client/src/client/auth.ts
@@ -1088,7 +1088,18 @@ async function executeTokenRequest(
         throw await parseErrorResponse(response);
     }
 
-    return OAuthTokensSchema.parse(await response.json());
+    const json: unknown = await response.json();
+
+    try {
+        return OAuthTokensSchema.parse(json);
+    } catch (parseError) {
+        // Some OAuth servers (e.g., GitHub) return error responses with HTTP 200 status.
+        // Check for error field only if token parsing failed.
+        if (typeof json === 'object' && json !== null && 'error' in json) {
+            throw await parseErrorResponse(JSON.stringify(json));
+        }
+        throw parseError;
+    }
 }
 
 /**
diff --git a/test/integration/test/issues/test_1342OauthErrorHttp200.test.ts b/test/integration/test/issues/test_1342OauthErrorHttp200.test.ts
new file mode 100644
index 000000000..fd509e6d6
--- /dev/null
+++ b/test/integration/test/issues/test_1342OauthErrorHttp200.test.ts
@@ -0,0 +1,44 @@
+/**
+ * Regression test for https://github.com/modelcontextprotocol/typescript-sdk/issues/1342
+ *
+ * Some OAuth servers (e.g., GitHub) return error responses with HTTP 200 status
+ * instead of 4xx. Previously, the SDK would try to parse these as tokens and fail
+ * with a confusing Zod validation error. This test verifies that the SDK properly
+ * detects the error field and surfaces the actual OAuth error message.
+ */
+
+import { exchangeAuthorization } from '@modelcontextprotocol/client';
+import { describe, expect, it, vi } from 'vitest';
+
+const mockFetch = vi.fn();
+vi.stubGlobal('fetch', mockFetch);
+
+describe('Issue #1342: OAuth error response with HTTP 200 status', () => {
+    const validClientInfo = {
+        client_id: 'test-client',
+        client_secret: 'test-secret',
+        redirect_uris: ['http://localhost:3000/callback'],
+        token_endpoint_auth_method: 'client_secret_post' as const
+    };
+
+    it('should throw OAuth error when server returns error with HTTP 200', async () => {
+        // GitHub returns errors with HTTP 200 instead of 4xx
+        mockFetch.mockResolvedValueOnce({
+            ok: true,
+            status: 200,
+            json: async () => ({
+                error: 'invalid_client',
+                error_description: 'The client_id and/or client_secret passed are incorrect.'
+            })
+        });
+
+        await expect(
+            exchangeAuthorization('https://auth.example.com', {
+                clientInformation: validClientInfo,
+                authorizationCode: 'code123',
+                codeVerifier: 'verifier123',
+                redirectUri: 'http://localhost:3000/callback'
+            })
+        ).rejects.toThrow('The client_id and/or client_secret passed are incorrect.');
+    });
+});