return {
  "neovim/nvim-lspconfig",
  event = { "BufReadPre", "BufNewFile" },
  dependencies = {
    "hrsh7th/cmp-nvim-lsp",
  },
  config = function()
    local capabilities = require("cmp_nvim_lsp").default_capabilities()

    -- Load project-local LSP settings from .nvim.lua
    local function load_project_lsp_settings(server_name, root_dir)
      local config_file = root_dir .. "/.nvim.lua"
      if vim.fn.filereadable(config_file) == 1 then
        local ok, project_config = pcall(dofile, config_file)
        if ok and project_config and project_config.lsp and project_config.lsp[server_name] then
          return project_config.lsp[server_name]
        end
      end
      return {}
    end

    local function on_attach(client, bufnr)
      -- Send settings to server after attach (many servers need didChangeConfiguration)
      if client.config.settings and next(client.config.settings) then
        vim.schedule(function()
          client.notify("workspace/didChangeConfiguration", { settings = client.config.settings })
        end)
      end
      
      local map = function(mode, lhs, rhs, desc)
        vim.keymap.set(mode, lhs, rhs, { buffer = bufnr, silent = true, noremap = true, desc = desc })
      end
      map('n', 'gd', vim.lsp.buf.definition, 'LSP: Go to definition')
      map('n', 'gr', vim.lsp.buf.references, 'LSP: References')
      map('n', 'gD', vim.lsp.buf.declaration, 'LSP: Go to declaration')
      map('n', 'gI', vim.lsp.buf.implementation, 'LSP: Go to implementation')
      map('n', 'K', vim.lsp.buf.hover, 'LSP: Hover')
    end

    -- Configure servers using vim.lsp.config (Neovim 0.11+ API)
    local function configure(server_name, opts)
      opts = opts or {}
      
      -- Merge with defaults
      local config = vim.tbl_deep_extend("force", {
        capabilities = capabilities,
        on_attach = on_attach,
        on_new_config = function(new_config, root_dir)
          -- Load project-specific settings based on actual root_dir
          local project_settings = load_project_lsp_settings(server_name, root_dir)
          if project_settings.settings then
            new_config.settings = vim.tbl_deep_extend(
              "force",
              new_config.settings or {},
              project_settings.settings
            )
          end
        end,
      }, opts)

      -- Configure the server using the new API
      vim.lsp.config(server_name, config)
    end

    -- Configure all servers
    configure("lua_ls", {
      settings = {
        Lua = {
          diagnostics = { globals = { "vim" } },
        },
      },
    })

    configure("ts_ls")
    configure("html")
    configure("cssls")
    configure("jsonls")
    configure("bashls")
    configure("marksman")
    configure("intelephense", {
      single_file_support = false,
    })

    -- Enable all configured servers
    vim.lsp.enable({ "lua_ls", "ts_ls", "html", "cssls", "jsonls", "bashls", "marksman", "intelephense" })
  end,
}