diff --git a/tools/azsdk-cli/docs/cli-commands-guidelines.md b/tools/azsdk-cli/docs/cli-commands-guidelines.md
new file mode 100644
index 00000000000..c9dc740d66c
--- /dev/null
+++ b/tools/azsdk-cli/docs/cli-commands-guidelines.md
@@ -0,0 +1,108 @@
+# Azure SDK Tools CLI Command Guidelines
+
+This document provides comprehensive guidelines for creating CLI commands in the `Azure.Sdk.Tools.Cli` project. All CLI commands must follow these established patterns and conventions to ensure consistency, maintainability, and proper integration with both CLI and MCP (Model Context Protocol) server functionality.
+Azure SDK developers and service team can use these CLI commands to generate, build, test and release Azure SDK.
+
+## Namespace Organization
+
+### Directory Structure
+
+```
+Tools/
+├── Package/          # Package-level operations 
+├── ReleasePlan/      # Release planning operations
+├── TypeSpec/         # TypeSpec operations
+```
+
+## Command Hierarchy
+
+All CLI commands must follow a predefined top-level command hierarchy. Commands are organized into the following categories:
+
+### 1. **package** - Package Operations
+
+**Namespace:** `Azure.Sdk.Tools.Cli.Tools.Package`  
+**Command Group:** `SharedCommandGroups.Package`  
+**Verb:** `package`  or `pkg`
+
+For operations at the SDK package level. The package group has further sub-grouping for better organization:
+
+#### Core Package Operations:
+
+- Build/compile SDK code
+- Generate SDKs
+- Release packages
+- Update version information
+- Validate packages
+
+#### Sub-Groups:
+
+##### **readme** - README Operations
+ 
+For generating and updating README files:
+
+- Generate README
+- Update README 
+
+##### **sample** - Sample Operations
+
+For generating and updating SDK samples:
+
+- Create samples
+- Update samples
+
+##### **test** - Test Operations
+
+For creating, updating, and running tests for SDK packages:
+
+- Create tests
+- Update tests
+- Run tests for specific packages
+
+**Examples:**
+
+- `package build --package-path ./sdk/storage`
+- `package generate --typespec-project ./specification/storage`
+- `package readme generate --package-path ./sdk/compute`
+- `package readme update --package-path ./sdk/keyvault --section getting-started`
+- `package release --package-name azure-core`
+- `package sample generate --package-path ./sdk/compute`
+- `package sample update --package-path ./sdk/storage --sample-name basic-usage`
+- `package test generate --package-path ./sdk/storage --test-type <type>`
+- `package test run --package-path ./sdk/keyvault --test-suite integration`
+- `package validate --package-path ./sdk/keyvault`
+
+### 2. **release-plan** - Release Plan
+
+**Namespace:** `Azure.Sdk.Tools.Cli.Tools.ReleasePlan`  
+**Command Group:** Custom (no predefined group)  
+**Verb:** `release-plan` 
+
+For release planning and SDK coordination:
+
+- Create release plans
+- Link SDK pull requests to release plan
+- Get release plan details
+
+**Examples:**
+
+- `release-plan get --workitem-id 456`
+- `release-plan link-sdk-pr --release-plan-id 123 --pr 789`
+
+### 3. **typespec** - TypeSpec Operations and TypeSpec Client Operations
+
+**Namespace:** `Azure.Sdk.Tools.Cli.Tools.TypeSpec`  
+**Command Group:** `SharedCommandGroups.TypeSpec`  
+**Verb:** `tsp`  
+
+For TypeSpec-related operations:
+
+- Create TypeSpec projects
+- Convert Swagger to TypeSpec
+- Validate TypeSpec projects
+- Common TypeSpec workflows
+
+**Examples:**
+
+- `tsp convert --swagger-file ./swagger.json`
+- `tsp init --name MyService`
+- `tsp validate --project-path ./typespec`
diff --git a/tools/azsdk-cli/docs/new-tool.md b/tools/azsdk-cli/docs/new-tool.md
index 064e6a68919..8380d8b727b 100644
--- a/tools/azsdk-cli/docs/new-tool.md
+++ b/tools/azsdk-cli/docs/new-tool.md
@@ -12,6 +12,7 @@ Help me create a new tool using #new-tool.md as a reference
 
    * [Tool Architecture Overview](#tool-architecture-overview)
    * [Step-by-Step Implementation Guide](#step-by-step-implementation-guide)
+   * [CLI Command Hierarchy](#cli-command-hierarchy)
    * [Code Examples and Templates](#code-examples-and-templates)
    * [Dependency Injection](#dependency-injection)
    * [Response Handling](#response-handling)
@@ -97,6 +98,10 @@ CommandHierarchy = [ SharedCommandGroups.EngSys, SharedCommandGroups.Cleanup ];
 - `IDevOpsService` - For Azure DevOps operations
 - Custom service interfaces for your tool's specific needs
 
+## CLI command hierarchy
+
+Refer to [CLI command hierarchy](cli-commands-guidelines.md) for guidelines on CLI command structure.
+
 ## Code Examples and Templates
 
 A working example of multiple tool types and usage of services can be found at [`ExampleTool.cs`](../Azure.Sdk.Tools.Cli/Tools/Example/ExampleTool.cs)
@@ -615,4 +620,4 @@ catch (Exception ex)
 {
     return new Response { ResponseError = ex.Message }; // Missing SetFailure()
 }
-```
+```
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