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Prompt, RAG, MCP, Agent, Skill: A Decision Framework for LLM System Boundaries

Score: 8/10 Topic: System boundaries and selection paths for Prompt, RAG, MCP, Agent, and Skill

Understand the boundaries and selection criteria for Prompt, RAG, MCP, Agent, and Skill in LLM application development.

As LLM applications become more complex, developers face a critical question: which pattern to use for a given task? This post clarifies the system boundaries between Prompt, RAG, MCP, Agent, and Skill, providing a decision framework for architects and engineers. Prompt engineering is the simplest, suitable for direct interactions. RAG adds external knowledge retrieval, ideal for domain-specific Q&A. MCP standardizes tool integration, enabling modularity. Agents handle multi-step reasoning and dynamic workflows, while Skills encapsulate reusable capabilities. The post discusses trade-offs in complexity, latency, cost, and maintainability, helping teams choose the right approach. It also highlights common pitfalls, such as over-engineering with agents when RAG would suffice. This framework is essential for anyone designing production-grade LLM systems.