Microsoft MCP Server for Enterprise

[Microsoft MCP Server for Enterprise Logo] Microsoft MCP Server for Enterprise

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 (see table below).

   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
   [Associate MCP Client Permissions]

Connect-Entra -Scopes 'Application.ReadWrite.All', 'DelegatedPermissionGrant.ReadWrite.All' -ErrorAction Stop$redirectUri = 'http://localhost'$app = New-EntraBetaApplication -DisplayName 'Enterprise MCP Client' `    -SignInAudience 'AzureADMyOrg' `    -PublicClient @{ RedirectUris = @($redirectUri) } -ErrorAction Stop$app.AppIdGrant-EntraBetaMCPServerPermission -ApplicationId $app.AppId -Scopes 'MCP.User.Read.All' -ErrorAction Stop

The PowerShell setup uses Application.ReadWrite.All, DelegatedPermissionGrant.ReadWrite.All, and an appropriate Entra administrator role. The MCP Client doesn't need these setup permissions at runtime: you can revoke setup-only grants and release setup-only roles after provisioning. Managing consent later requires administrator authorization again.

Info Table

VS Code's default client uses a pre-registered application with its own redirect URIs. To add an HTTP 127.0.0.1 URI to a custom app through the portal, use the application manifest.

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

By default, Visual Studio Code and GitHub Copilot CLI use the same Visual Studio Code MCP Client app Id. Both can also use a custom client Id.

Prerequisites

These steps provision the Visual Studio Code MCP Client application in your tenant and grant it the MCP permissions.
They're required when either client uses the default application Id. Skip them when using a custom client app instead.

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

   powershell

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

2. Connect Microsoft Entra ID to your tenant:

   powershell

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

3. Grant only the MCP scopes your scenarios require to the Visual Studio Code MCP Client app (also used by GitHub Copilot CLI with the default application Id). This example grants user read access:

   powershell

   Grant-EntraBetaMCPServerPermission -ApplicationName VisualStudioCode -Scopes 'MCP.User.Read.All'

Without -Scopes, the cmdlet grants all published scopes. Specifying -Scopes adds to existing grants; revoke unwanted scopes if you previously granted broader access.

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

Microsoft.Entra.Beta is a setup dependency, not a runtime dependency. For a custom client, you can provision the server through Graph Explorer above and manage consent in the Entra admin center.

To avoid module conflicts without changing your installed modules, open a new PowerShell 7 session and save the module and its dependencies to a temporary directory:

$modulePath = Join-Path ([System.IO.Path]::GetTempPath()) ([System.IO.Path]::GetRandomFileName())New-Item -ItemType Directory -Path $modulePath | Out-Null$modulePath$env:PSModulePath = $modulePath + [System.IO.Path]::PathSeparator + (Join-Path $PSHOME 'Modules')Save-Module -Name Microsoft.Entra.Beta -Path $modulePathImport-Module Microsoft.Entra.Beta

Run the connection and grant commands above in that session. Close the session when finished and delete the temporary directory shown by $modulePath.

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

Install-Module Uninstall-GraphUninstall-Graph -All

Authorization and permissions

The MCP Server for Enterprise supports delegated permissions only. Access requires both the MCP Client's granted scopes and the signed-in user's permissions and roles. MCP consent doesn't grant access beyond that user's authorization.

Grant only the MCP.* scopes your use cases need. You can use a read-only configuration without granting write scopes. Add scopes as your needs change; consult the Microsoft Graph permissions reference for the corresponding Graph permissions.

Administrators can use per-user consent grants to limit access to selected users.

Use the following cmdlet to list the permissions provided by the MCP Server for Enterprise:

(Get-EntraBetaServicePrincipal -Property "PublishedPermissionScopes" -Filter "AppId eq 'e8c77dc2-69b3-43f4-bc51-3213c9d915b4'").PublishedPermissionScopes | Where-Object { $_.IsEnabled -eq $true -and $_.AdditionalProperties["isPrivate"] -ne $true } | Select-Object Value, AdminConsentDisplayName | Sort-Object

You can use your own app registration as the MCP Client. Use these cmdlets to manage its granted scopes:

Grant-EntraBetaMCPServerPermission -ApplicationId "<MCP_Client_Application_Id>" -Scopes "<Scope1>", "<Scope2>", "<...>"Revoke-EntraBetaMCPServerPermission -ApplicationId "<MCP_Client_Application_Id>" -Scopes "<Scope1>", "<Scope2>", "<...>"

Learn more: Manage MCP Server for Enterprise permissions

Advantages

1. Remote MCP Server: easy to configure and standards-compliant, deployed in the same regions as Microsoft Graph.
2. IT Admins in control: MCP clients need specific MCP.* scopes (mirroring Microsoft Graph scopes) to access your tenant data.
3. Simplified architecture: 3 tools cover the workflow instead of one tool per API operation.
4. High-quality query generation: generates accurate queries from over 500 real-world examples via RAG (Retrieval-Augmented Generation).
5. Full auditability: all MCP operations run under the same App ID with a specific user agent.
6. No extra license required: your existing Microsoft Entra and Microsoft Graph API licenses apply.

Availability, Roadmap and feedback

The Microsoft MCP Server for Enterprise is available only in the public cloud (global service), with support for sovereign clouds planned for a future release.
We will continue expanding beyond the current Microsoft Entra scenarios, but M365 APIs will be covered by Agent 365.
Support for write operations is planned for a future release.
Please share suggestions or issues through our feedback form: Submit feedback.

Licensing and usage

• The MCP Server for Enterprise doesn't require extra cost or separate license.
• You need the right licenses for the data you access (for example, Microsoft Entra ID Governance or Microsoft Entra ID P2 license for Privileged Identity Management (PIM) data).
• Any request to this MCP server is limited to 100 requests per minute per user. Requests to microsoft_graph_get are also subject to Microsoft Graph Throttling limits.

Logs

To monitor usage, enable Microsoft Graph activity logs in your tenant to record the Graph API calls made through the MCP server.

Filter for MCP Server usage:

Use the Application (Client ID) of the Microsoft MCP Server for Enterprise: e8c77dc2-69b3-43f4-bc51-3213c9d915b4.

The following Kusto query retrieves these logs:

MicrosoftGraphActivityLogs| where TimeGenerated >= ago(30d)| where AppId == "e8c77dc2-69b3-43f4-bc51-3213c9d915b4"| project RequestId, ClientRequestId, TimeGenerated, UserId, RequestMethod, RequestUri, Scopes, ResponseStatusCode

Use Graph's RequestId and ClientRequestId with the timestamp, user, and request URI to trace API calls. Scopes lists permissions in the Graph access token, not the specific permission used to authorize each operation.

Support and reference

For documentation, troubleshooting, and feedback, refer to the official Microsoft Learn documentation and support channels.

Security and compliance

All operations respect Microsoft Graph permissions and security policies. The MCP server uses standard Microsoft Graph telemetry and doesn't log request payloads. Review your AI client's data-handling and retention policies for prompts and returned data. Ensure compliance with your organizational, regulatory, and contractual requirements when integrating the MCP Server.

No warranty/limitation of liability

This software is provided "as is" without warranties or conditions of any kind, either express or implied. Microsoft isn't liable for any damages that result from use, misuse, or misconfiguration of this software.