Microsoft MCP Server for Enterprise

⚠️ If Visual Studio Code displays the error Error getting token from server metadata: Error: Cannot force new registration for a non-dynamic authentication provider., change "microsoft-authentication.implementation" from "msal" to "msal-no-broker" in your Settings.

Overview

Built on the open Model Context Protocol, the public preview of Microsoft MCP Server for Enterprise lets AI agents access Microsoft Entra data by converting natural language queries into Microsoft Graph API calls. Developers and IT administrators use it to query Microsoft Entra data from their AI-powered workflows.

Full Documentation: Overview of Microsoft MCP Server for Enterprise

MCP Server Provisioning (execute once per tenant)

To set up the MCP Server for your tenant:

1. Provision the MCP Server. In Graph Explorer, send:
   POST https://graph.microsoft.com/v1.0/servicePrincipals
Body: { "appId": "e8c77dc2-69b3-43f4-bc51-3213c9d915b4" }

2. Register a new app, representing the MCP Client.
   Set the appropriate Redirect URI (also called Reply URL) depending on the client. For example:
   Claude Desktop needs https://claude.ai/api/mcp/auth_callback,
   ChatGPT generates a different one for each client using the format: https://chatgpt.com/connector/oauth/<random_chars>,
   Microsoft Foundry generates a different Redirect URI for each connector using the format: https://<random_chars>.<region>.azurecontainerapps.io/rest/oauth2-credential/callback

   Redirect URI type matters in Microsoft Entra. If you add the URI under Web, Entra treats the app as a confidential client. Use that for apps that run on a server and can protect credentials (like Copilot Studio). At sign-in, Entra expects that app to authenticate with a client_secret or a certificate-based client_assertion.
   If you add the URI under Mobile and desktop applications or another public-client platform, Entra treats the app as a public client. Use that for desktop, CLI, or device apps that cannot keep a secret (like ChatGPT or Claude). These apps usually use the authorization code flow with PKCE instead of a client secret.

3. Associate the MCP permissions (MCP.<Microsoft_Graph_Scope>) between the MCP Server and the MCP Client
   

Info Table

Tools

This MCP Server uses Retrieval-Augmented Generation (RAG) and few-shot prompting to generate complete Microsoft Graph queries rather than exposing a separate tool per Graph operation.
It exposes three tools:

1. microsoft_graph_suggest_queries: Finds relevant Microsoft Graph API calls based on user intent.
2. microsoft_graph_get: Executes read-only Microsoft Graph API calls, respecting User roles and MCP Client scopes.
3. microsoft_graph_list_properties: Retrieves properties of specific Microsoft Graph entities to help the AI model

Current scope and capabilities

For Public Preview, we support read-only enterprise IT scenarios in Microsoft Entra identity and directory operations (user, group, application, device management, and administrative actions).

The MCP Server handles queries such as:

1. Security posture: authentication methods/strengths, Conditional Access, Security Defaults.
2. Privileged access: Who has which directory roles, how assigned (direct vs group), and PIM status.
3. Application risk: Which Apps / Service Principals exist, who owns them, what permissions/SSO they use, and which are ownerless or external.
4. Access governance: Who has access to what (users, groups, packages); review decisions, automate joiner/mover/leaver.
5. Device readiness: Managed/compliant status, join state, OS/version distribution, and stale or inactive devices.
6. Provenance and investigation: End‑to‑end telemetry (sign‑in, audit, provisioning, network), health alerts, and SLA/availability.
7. Optimize spending & hygiene: License counts/usage, unused or stale apps/groups, domain configuration and contacts.

Supported Clients and Configurations

The Microsoft MCP Server for Enterprise works with any MCP-compatible client that supports the latest standard.

⚠️ Notes:

• Dynamic Client Registration (DCR) is not supported, but we are working to support OAuth Client ID Metadata Documents (CIMD) in a future release.
• ChatGPT, Claude, and other 3P Agents require a custom client Id: register your own MCP Client application in your tenant, assign the required MCP.* scopes, and configure the redirect URIs accordingly.

Microsoft Agent Platforms

• Copilot Studio
• Microsoft Foundry

Third Party MCP clients

These clients require a custom MCP Client application registered in your tenant. See Authorization and permissions to grant the required MCP.* scopes to your app.

Visual Studio Code and GitHub Copilot CLI

Visual Studio Code and GitHub Copilot CLI share the same Visual Studio Code MCP Client app Id, so they use the same setup.
GitHub Copilot CLI can also use a custom client Id (see Option 2).

Prerequisites

These steps provision the Visual Studio Code MCP Client application in your tenant and grant it the MCP permissions.
They're required for Visual Studio Code and for GitHub Copilot CLI when it uses the default application Id (Option 1 below). Skip them if you're configuring GitHub Copilot CLI with a custom oauthClientId instead (Option 2 below).

1. Install Microsoft.Entra.Beta PowerShell module (version 1.0.13 or later, requires PowerShell 7):

   powershell

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   Install-Module Microsoft.Entra.Beta -Force -AllowClobber
   

2. Connect Microsoft Entra ID to your tenant:

   powershell

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   Connect-Entra -Scopes 'Application.ReadWrite.All', 'DelegatedPermissionGrant.ReadWrite.All'
   

3. Grant all MCP permissions to the Visual Studio Code MCP Client app (also used by GitHub Copilot CLI when configured with the default application Id):

   powershell

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   Grant-EntraBetaMCPServerPermission -ApplicationName VisualStudioCode
   

Learn more about Grant-EntraBetaMCPServerPermission. For detailed installation help, see the installation instructions.

If the Microsoft Graph PowerShell SDK modules conflict with Microsoft.Entra.Beta, run the following and retry from step 1:

Install-Module Uninstall-Graph
Uninstall-Graph -All