July 21st, 2025
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Build Smarter with the Microsoft 365 Agents Toolkit MCP Server

As AI agents become central to how we build and interact with modern productivity apps, developers need tools that are flexible, standard-based, and deeply integrated with AI. That’s where the Microsoft 365 Agents Toolkit MCP Server comes in. 

This is a local Model Context Protocol (MCP) server that acts as a bridge between your AI coding agents and the Microsoft 365 Agents Toolkit. It enables developers for building apps and agents for Microsoft 365 and Microsoft 365 Copilot and give you better AI empowered developing experience through whole life cycle of apps and agents. 

With this we enable a seamless integration with GitHub Copilot Chat (Agent Mode) and other AI powered coding tools—so you can build, test, and deploy apps faster. 

Whether you’re building an agent for Microsoft 365 Copilot, extending a Teams app with AI, or experimenting with multi-agent orchestration, the Microsoft 365 Agents Toolkit MCP Server gives you the foundation to do it right. 

Getting Started in VS Code 

Step 1. Complete the Prerequisites  

  1. The Microsoft 365 Agents Toolkit MCP Server requires Node.js to install and run the server. If you don’t have it installed, follow the instructions here. 
  2. Install either the stable or Insiders release of VS Code:  Stable release | Insiders release 
  3. Install the GitHub Copilot and GitHub Copilot Chat extensions 

 Step 2. Setup up Microsoft 365 Agents Toolkit MCP Server 

For a step-by-step guide to install the Microsoft 365 Agents Toolkit MCP Server, follow these instructions: 


{
    "servers": { 
        "M365AgentsToolkit Server": { 
            "command": "npx", 
            "args": [ 
                "-y", 
                "@microsoft/m365agentstoolkit-mcp@latest", 
                "server", 
                "start" 
            ] 
        } 
    } 
}

 

  • List The Tools in GitHub Copilot Chat for Quick Validation 
    • Go to GitHub Copilot in VS Code and switch to Agent mode 
    • Click ‘Refresh’ on the tool list  

Agent mode GitHub Copilot image

    • Make sure you can find all tools from this MCP server

MCP Server selection image

What Can You Build?

Here are some real-world examples of how developers are using the MCP Server:

  • Create Custom Engine Agents: Build agents with custom logic and AI services powered by the Microsoft 365 Agents SDK.
  • Bring your own agents: Use the Microsoft 365 Agents SDK to evolve your Teams app into a Copilot agent.
  • Add AI to Teams apps: Use the Teams AI Library to build apps for Teams powered by AI.
  • Extend declarative agents: Add new actions or Copilot Connectors to declarative agents.
  • Use Adaptive Cards: Render API responses directly in Teams or Copilot with rich UI.
  • Build apps for Microsoft 365: Add new features or build from scratch new apps for Teams and more.

Build with Us

The Microsoft 365 Agents Toolkit MCP server is part of our open approach to agent development. Whether you’re building Copilot agents, extending Teams apps with AI, or experimenting with new AI-first workflows, the Microsoft 365 Agents Toolkit MCP Server is designed to help you move faster and build smarter—right from your local dev environment.

Help shape the future of agent development by sharing your feedback. We’re building this together, openly, collaboratively, and with developers like you at the center:

We look forward to seeing what you’ll build with the Microsoft 365 Agents Toolkit MCP Server!

Author

Daniel Carrasco
Sr Product Marketing Manager

As Microsoft’s Product Marketing Manager for Copilot extensibility, I lead the global developer marketing strategy for pro-code agent development across Microsoft 365 Copilot and Copilot Studio, empowering developers to build intelligent, enterprise-ready agents.

Principal product manager

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