Exercise - Create an MCP server with Azure Functions
The Model Context Protocol (MCP) is an open standard that defines how AI agents and language models discover and invoke external tools. Azure Functions includes an MCP extension that lets you expose function apps as MCP servers, where each function becomes a tool that MCP clients can call.
In this exercise, you create an Azure Functions project with the MCP extension, define tool trigger functions for document processing, configure the MCP server settings, and test the server locally by connecting to it from GitHub Copilot in agent mode.
Note
This exercise uses the Azure Functions MCP extension, which is actively evolving. Visit the Azure Functions MCP extension documentation for the most up-to-date setup instructions, API surface, and configuration options.
Tasks performed in this exercise:
- Create a new Azure Functions project with the MCP extension
- Configure the MCP server settings in host.json
- Define MCP tool trigger functions in function_app.py
- Verify the Python environment
- Test the MCP server locally using GitHub Copilot in agent mode
This exercise takes approximately 25 minutes to complete.
Before you start
To complete the exercise, you need:
- Visual Studio Code on one of the supported platforms.
- The Azure Functions extension for Visual Studio Code.
- Azure Functions Core Tools v4 or later.
- Python 3.9 or later.
- The GitHub Copilot extension for Visual Studio Code.
Get started
Select the Launch Exercise button to open the exercise instructions in a new browser window. When you're finished with the exercise, return here to:
- Complete the module
- Earn a badge for completing this module
