diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/BaseToolLoader.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/BaseToolLoader.cs
index a3e80ad6e..88e65dcf5 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/BaseToolLoader.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/BaseToolLoader.cs
@@ -2,7 +2,9 @@
 // Licensed under the MIT License.
 
 using System.Text.Json;
+using Azure.Mcp.Core.Models.Elicitation;
 using Microsoft.Extensions.Logging;
+using ModelContextProtocol;
 using ModelContextProtocol.Client;
 using ModelContextProtocol.Protocol;
 
@@ -150,4 +152,81 @@ protected McpClientOptions CreateClientOptions(McpServer server)
 
         return clientOptions;
     }
+
+    /// <summary>
+    /// Handles elicitation for commands that access sensitive data.
+    /// If elicitation is disabled or not supported, returns appropriate error result.
+    /// </summary>
+    /// <param name="request">The request context containing the MCP server.</param>
+    /// <param name="toolName">The name of the tool being invoked.</param>
+    /// <param name="insecureDisableElicitation">Whether elicitation has been disabled via insecure option.</param>
+    /// <param name="logger">Logger instance for recording elicitation events.</param>
+    /// <param name="cancellationToken">Cancellation token for the operation.</param>
+    /// <returns>
+    /// Null if elicitation was accepted or bypassed (operation should proceed).
+    /// A CallToolResult with IsError=true if elicitation was rejected or failed (operation should not proceed).
+    /// </returns>
+    protected static async Task<CallToolResult?> HandleSecretElicitationAsync(
+        RequestContext<CallToolRequestParams> request,
+        string toolName,
+        bool insecureDisableElicitation,
+        ILogger logger,
+        CancellationToken cancellationToken)
+    {
+        // Check if elicitation is disabled by insecure option
+        if (insecureDisableElicitation)
+        {
+            logger.LogWarning("Tool '{Tool}' handles sensitive data but elicitation is disabled via --insecure-disable-elicitation. Proceeding without user consent (INSECURE).", toolName);
+            return null;
+        }
+
+        // If client doesn't support elicitation, treat as rejected and don't execute
+        if (!request.Server.SupportsElicitation())
+        {
+            logger.LogWarning("Tool '{Tool}' handles sensitive data but client does not support elicitation. Operation rejected.", toolName);
+            return new CallToolResult
+            {
+                Content = [new TextContentBlock { Text = "This tool handles sensitive data and requires user consent, but the client does not support elicitation. Operation rejected for security." }],
+                IsError = true
+            };
+        }
+
+        try
+        {
+            logger.LogInformation("Tool '{Tool}' handles sensitive data. Requesting user confirmation via elicitation.", toolName);
+
+            // Create the elicitation request using our custom model
+            var elicitationRequest = new ElicitationRequestParams
+            {
+                Message = $"⚠️ SECURITY WARNING: The tool '{toolName}' may expose secrets or sensitive information.\n\nThis operation could reveal confidential data such as passwords, API keys, certificates, or other sensitive values.\n\nDo you want to continue with this potentially sensitive operation?",
+                RequestedSchema = ElicitationSchema.CreateSecretSchema("confirmation", "Confirm Action", "Type 'yes' to confirm you want to proceed with this sensitive operation", true)
+            };
+
+            // Use our extension method to handle the elicitation
+            var elicitationResponse = await request.Server.RequestElicitationAsync(elicitationRequest, cancellationToken);
+
+            if (elicitationResponse.Action != ElicitationAction.Accept)
+            {
+                logger.LogInformation("User {Action} the elicitation for tool '{Tool}'. Operation not executed.",
+                    elicitationResponse.Action.ToString().ToLower(), toolName);
+                return new CallToolResult
+                {
+                    Content = [new TextContentBlock { Text = $"Operation cancelled by user ({elicitationResponse.Action.ToString().ToLower()})." }],
+                    IsError = true
+                };
+            }
+
+            logger.LogInformation("User accepted elicitation for tool '{Tool}'. Proceeding with execution.", toolName);
+            return null;
+        }
+        catch (Exception ex)
+        {
+            logger.LogError(ex, "Error during elicitation for tool '{Tool}': {Error}", toolName, ex.Message);
+            return new CallToolResult
+            {
+                Content = [new TextContentBlock { Text = $"Elicitation failed for sensitive tool '{toolName}': {ex.Message}. Operation not executed for security." }],
+                IsError = true
+            };
+        }
+    }
 }
diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/CommandFactoryToolLoader.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/CommandFactoryToolLoader.cs
index 77c66b408..c7806b0ea 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/CommandFactoryToolLoader.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/CommandFactoryToolLoader.cs
@@ -23,7 +23,7 @@ public sealed class CommandFactoryToolLoader(
     IServiceProvider serviceProvider,
     CommandFactory commandFactory,
     IOptions<ToolLoaderOptions> options,
-    ILogger<CommandFactoryToolLoader> logger) : IToolLoader
+    ILogger<CommandFactoryToolLoader> logger) : BaseToolLoader(logger)
 {
     private readonly IServiceProvider _serviceProvider = serviceProvider ?? throw new ArgumentNullException(nameof(serviceProvider));
     private readonly CommandFactory _commandFactory = commandFactory;
@@ -32,7 +32,6 @@ public sealed class CommandFactoryToolLoader(
         (options.Value.Namespace == null || options.Value.Namespace.Length == 0)
             ? commandFactory.AllCommands
             : commandFactory.GroupCommands(options.Value.Namespace);
-    private readonly ILogger<CommandFactoryToolLoader> _logger = logger;
 
     public const string RawMcpToolInputOptionName = "raw-mcp-tool-input";
 
@@ -60,7 +59,7 @@ private static bool IsRawMcpToolInputOption(Option option)
     /// <param name="request">The request context containing parameters and metadata.</param>
     /// <param name="cancellationToken">A cancellation token.</param>
     /// <returns>A result containing the list of available tools.</returns>
-    public ValueTask<ListToolsResult> ListToolsHandler(RequestContext<ListToolsRequestParams> request, CancellationToken cancellationToken)
+    public override ValueTask<ListToolsResult> ListToolsHandler(RequestContext<ListToolsRequestParams> request, CancellationToken cancellationToken)
     {
         var visibleCommands = CommandFactory.GetVisibleCommands(_toolCommands);
 
@@ -92,7 +91,7 @@ public ValueTask<ListToolsResult> ListToolsHandler(RequestContext<ListToolsReque
     /// <param name="request">The request context containing parameters and metadata.</param>
     /// <param name="cancellationToken">A cancellation token.</param>
     /// <returns>The result of the tool call operation.</returns>
-    public async ValueTask<CallToolResult> CallToolHandler(RequestContext<CallToolRequestParams> request, CancellationToken cancellationToken)
+    public override async ValueTask<CallToolResult> CallToolHandler(RequestContext<CallToolRequestParams> request, CancellationToken cancellationToken)
     {
         if (request.Params == null)
         {
@@ -156,60 +155,16 @@ public async ValueTask<CallToolResult> CallToolHandler(RequestContext<CallToolRe
         var metadata = command.Metadata;
         if (metadata.Secret)
         {
-            // Check if elicitation is disabled by insecure option
-            if (_options.Value.InsecureDisableElicitation)
+            var elicitationResult = await HandleSecretElicitationAsync(
+                request,
+                toolName,
+                _options.Value.InsecureDisableElicitation,
+                _logger,
+                cancellationToken);
+
+            if (elicitationResult != null)
             {
-                _logger.LogWarning("Tool '{Tool}' handles sensitive data but elicitation is disabled via --insecure-disable-elicitation. Proceeding without user consent (INSECURE).", toolName);
-            }
-            else
-            {
-                // If client doesn't support elicitation, treat as rejected and don't execute
-                if (!request.Server.SupportsElicitation())
-                {
-                    _logger.LogWarning("Tool '{Tool}' handles sensitive data but client does not support elicitation. Operation rejected.", toolName);
-                    return new CallToolResult
-                    {
-                        Content = [new TextContentBlock { Text = "This tool handles sensitive data and requires user consent, but the client does not support elicitation. Operation rejected for security." }],
-                        IsError = true
-                    };
-                }
-
-                try
-                {
-                    _logger.LogInformation("Tool '{Tool}' handles sensitive data. Requesting user confirmation via elicitation.", toolName);
-
-                    // Create the elicitation request using our custom model
-                    var elicitationRequest = new ElicitationRequestParams
-                    {
-                        Message = $"⚠️ SECURITY WARNING: The tool '{toolName}' may expose secrets or sensitive information.\n\nThis operation could reveal confidential data such as passwords, API keys, certificates, or other sensitive values.\n\nDo you want to continue with this potentially sensitive operation?",
-                        RequestedSchema = ElicitationSchema.CreateSecretSchema("confirmation", "Confirm Action", "Type 'yes' to confirm you want to proceed with this sensitive operation", true)
-                    };
-
-                    // Use our extension method to handle the elicitation
-                    var elicitationResponse = await request.Server.RequestElicitationAsync(elicitationRequest, cancellationToken);
-
-                    if (elicitationResponse.Action != ElicitationAction.Accept)
-                    {
-                        _logger.LogInformation("User {Action} the elicitation for tool '{Tool}'. Operation not executed.",
-                            elicitationResponse.Action.ToString().ToLower(), toolName);
-                        return new CallToolResult
-                        {
-                            Content = [new TextContentBlock { Text = $"Operation cancelled by user ({elicitationResponse.Action.ToString().ToLower()})." }],
-                            IsError = true
-                        };
-                    }
-
-                    _logger.LogInformation("User accepted elicitation for tool '{Tool}'. Proceeding with execution.", toolName);
-                }
-                catch (Exception ex)
-                {
-                    _logger.LogError(ex, "Error during elicitation for tool '{Tool}': {Error}", toolName, ex.Message);
-                    return new CallToolResult
-                    {
-                        Content = [new TextContentBlock { Text = $"Elicitation failed for sensitive tool '{toolName}': {ex.Message}. Operation not executed for security." }],
-                        IsError = true
-                    };
-                }
+                return elicitationResult;
             }
         }
 
@@ -330,9 +285,9 @@ private static Tool GetTool(string fullName, IBaseCommand command)
     /// Disposes resources owned by this tool loader.
     /// CommandFactoryToolLoader doesn't own external resources that need disposal.
     /// </summary>
-    public async ValueTask DisposeAsync()
+    protected override ValueTask DisposeAsyncCore()
     {
         // CommandFactoryToolLoader doesn't create or manage disposable resources
-        await ValueTask.CompletedTask;
+        return ValueTask.CompletedTask;
     }
 }
diff --git a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/NamespaceToolLoader.cs b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/NamespaceToolLoader.cs
index e5db1298d..035116d1d 100644
--- a/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/NamespaceToolLoader.cs
+++ b/core/Azure.Mcp.Core/src/Areas/Server/Commands/ToolLoading/NamespaceToolLoader.cs
@@ -336,60 +336,16 @@ private async Task<CallToolResult> InvokeChildToolAsync(
             var metadata = cmd.Metadata;
             if (metadata.Secret)
             {
-                // Check if elicitation is disabled by insecure option
-                if (_options.Value.InsecureDisableElicitation)
+                var elicitationResult = await HandleSecretElicitationAsync(
+                    request,
+                    $"{namespaceName} {command}",
+                    _options.Value.InsecureDisableElicitation,
+                    _logger,
+                    cancellationToken);
+
+                if (elicitationResult != null)
                 {
-                    _logger.LogWarning("Tool '{Namespace} {Command}' handles sensitive data but elicitation is disabled via --insecure-disable-elicitation. Proceeding without user consent (INSECURE).", namespaceName, command);
-                }
-                else
-                {
-                    // If client doesn't support elicitation, treat as rejected and don't execute
-                    if (!request.Server.SupportsElicitation())
-                    {
-                        _logger.LogWarning("Tool '{Namespace} {Command}' handles sensitive data but client does not support elicitation. Operation rejected.", namespaceName, command);
-                        return new CallToolResult
-                        {
-                            Content = [new TextContentBlock { Text = "This tool handles sensitive data and requires user consent, but the client does not support elicitation. Operation rejected for security." }],
-                            IsError = true
-                        };
-                    }
-
-                    try
-                    {
-                        _logger.LogInformation("Tool '{Namespace} {Command}' handles sensitive data. Requesting user confirmation via elicitation.", namespaceName, command);
-
-                        // Create the elicitation request using our custom model
-                        var elicitationRequest = new ElicitationRequestParams
-                        {
-                            Message = $"⚠️ SECURITY WARNING: The tool '{namespaceName} {command}' may expose secrets or sensitive information.\n\nThis operation could reveal confidential data such as passwords, API keys, certificates, or other sensitive values.\n\nDo you want to continue with this potentially sensitive operation?",
-                            RequestedSchema = ElicitationSchema.CreateSecretSchema("confirmation", "Confirm Action", "Type 'yes' to confirm you want to proceed with this sensitive operation", true)
-                        };
-
-                        // Use our extension method to handle the elicitation
-                        var elicitationResponse = await request.Server.RequestElicitationAsync(elicitationRequest, cancellationToken);
-
-                        if (elicitationResponse.Action != ElicitationAction.Accept)
-                        {
-                            _logger.LogInformation("User {Action} the elicitation for tool '{Namespace} {Command}'. Operation not executed.",
-                                elicitationResponse.Action.ToString().ToLower(), namespaceName, command);
-                            return new CallToolResult
-                            {
-                                Content = [new TextContentBlock { Text = $"Operation cancelled by user ({elicitationResponse.Action.ToString().ToLower()})." }],
-                                IsError = true
-                            };
-                        }
-
-                        _logger.LogInformation("User accepted elicitation for tool '{Namespace} {Command}'. Proceeding with execution.", namespaceName, command);
-                    }
-                    catch (Exception ex)
-                    {
-                        _logger.LogError(ex, "Error during elicitation for tool '{Namespace} {Command}': {Error}", namespaceName, command, ex.Message);
-                        return new CallToolResult
-                        {
-                            Content = [new TextContentBlock { Text = $"Elicitation failed for sensitive tool '{namespaceName} {command}': {ex.Message}. Operation not executed for security." }],
-                            IsError = true
-                        };
-                    }
+                    return elicitationResult;
                 }
             }
 
diff --git a/servers/Azure.Mcp.Server/CHANGELOG.md b/servers/Azure.Mcp.Server/CHANGELOG.md
index 831bdab21..1dd5163c0 100644
--- a/servers/Azure.Mcp.Server/CHANGELOG.md
+++ b/servers/Azure.Mcp.Server/CHANGELOG.md
@@ -14,6 +14,8 @@ The Azure MCP Server updates automatically by default whenever a new release com
 
 ### Other Changes
 
+- Refactored duplicate elicitation handling code in `CommandFactoryToolLoader` and `NamespaceToolLoader` into shared `BaseToolLoader.HandleSecretElicitationAsync` method. [[#1028](https://github.com/microsoft/mcp/pull/1028)]
+
 ## 2.0.0-beta.2 (2025-11-06)
 
 ### Features Added