VS Code integrates Model Context Protocol (MCP) servers through its MCP gallery, the MCP: Add Server command, or configuration files. Install a gallery server such as Playwright, approve the trust prompt, start the server, and enable its tools from Chat’s Configure Tools picker. For repeatable setups, place a server in .vscode/mcp.json (VS Code format) or use the portable .mcp.json/~/.copilot/mcp-config.json format.
This guide covers scope, local and remote execution, transports, authentication, agent use, security, and fixes for common failures. Labels and behavior reflect Microsoft Visual Studio Code documentation retrieved September 29, 2026; that documentation does not establish a universal minimum VS Code version or Copilot-plan requirement.
What MCP adds to VS Code
MCP lets an agent discover and call tools supplied by an external server. Those tools can work alongside VS Code’s built-in and extension-contributed tools, giving Chat access to capabilities such as browser automation, issue management, database queries, or internal APIs. The server may run as a local process or at a remote HTTP endpoint.
VS Code documents local standard input/output (stdio) and Streamable HTTP (http) transports. Server-sent events (sse) remains supported as a legacy transport. Available capabilities can include tools, prompts, resources, elicitation, sampling, OAuth authentication, server instructions, roots, and MCP Apps; the server itself determines which of these it implements.
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Choose where the server configuration lives
| Location | Scope and execution | Configuration key |
|---|---|---|
.vscode/mcp.json |
Workspace-specific VS Code configuration. Workspace trust controls whether it starts. | servers |
Workspace-root .mcp.json |
Portable MCP configuration for the project and Agent Host. | mcpServers |
~/.copilot/mcp-config.json |
User-wide portable configuration. | mcpServers |
| User profile settings | Servers available across workspaces in that VS Code profile. | Created through the MCP command flow or equivalent configuration. |
| Remote user settings | Runs the server in the connected remote environment, rather than on the local computer. | Configured for the remote host. |
| Dev Container | Containerized workspace configuration. | customizations.vscode.mcp |
VS Code forwards eligible .vscode/mcp.json entries to Agent Host, while portable files are read natively by Agent Host. Interactive ${input:...} variables are an exception to that forwarding behavior. If a server must run on a remote machine, configure it in workspace or remote-user settings on that machine.
Fastest setup: install a server from the MCP gallery
- Open Extensions in VS Code.
- Search for
@mcp playwright. - Install the Playwright MCP server published for the result you selected.
- Accept the trust prompt only after checking the publisher and what the server will execute.
- Open Chat. VS Code starts or discovers the server and lists its tools.
- Select Configure Tools in Chat, inspect the list, and enable only the tools needed for the task.
The same flow works for other gallery servers: search @mcp, inspect the publisher and permissions, install, then configure its tools in Chat. Package names, authentication, and required arguments vary by server.
Add an MCP server manually
VS Code’s native format
Create .vscode/mcp.json in the workspace, or use the Command Palette and run MCP: Add Server. A minimal file can contain both a remote HTTP server and a local process:
{
"servers": {
"github": {
"type": "http",
"url": "https://api.githubcopilot.com/mcp"
},
"playwright": {
"command": "npx",
"args": ["-y", "@microsoft/mcp-server-playwright"]
}
}
}The URLs and package names in this example are illustrative of the documented shape, not universal endpoints. Replace them with the address, command, authentication, and arguments required by the server you actually use. A local entry normally specifies command and args; an HTTP entry specifies type and url, plus whatever authentication fields that server documents.
Portable MCP format
For a project portable across MCP-compatible hosts, create .mcp.json at the workspace root. For a user-wide portable setup, create ~/.copilot/mcp-config.json. These files use mcpServers rather than servers:
{
"mcpServers": {
"my-server": {
"command": "node",
"args": ["./tools/my-mcp-server.js"],
"env": {
"SERVICE_MODE": "development"
}
}
}
}Keep secrets out of committed files. Use VS Code input variables or an environment file when the server supports them. Never paste API keys into a public workspace configuration.
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Start, inspect, and use tools in Chat
- Save the configuration file. Inline actions in
mcp.jsonor the Command Palette commandMCP: List Serverslet you start, stop, restart, and inspect a server. - Wait for discovery to complete. A server’s tools appear only after it starts successfully.
- In Chat, select Configure Tools and toggle individual tools. The enabled set controls what the agent may call.
- Describe the task in ordinary language. The agent chooses among enabled tools when appropriate and may ask for confirmation or input.
- If the server changed its tool definitions, run
MCP: Reset Cached Tools, then restart it.
Tool availability is separate from installation: an installed server can be running while all of its tools are disabled in the picker.
Workspace trust, permissions, and sandboxing
Why trust matters
Microsoft’s VS Code documentation states: “Local MCP servers can run arbitrary code on your machine.” Treat a local configuration like executable software. Verify the publisher, inspect the command and arguments, review the source when available, and understand what files, network services, or credentials the process can reach.
Workspace MCP servers inherit Workspace Trust. In Restricted Mode, workspace MCP configurations do not start. If a repository arrives from an untrusted source, do not enable its MCP file merely to make Chat work.
Reduce credential exposure
- Use environment files or input variables instead of hardcoding keys.
- Grant the server a narrowly scoped token when the service supports scopes.
- Keep secrets out of
.mcp.jsoncommitted to version control. - Enable only the tools required for the current task.
Sandboxing
VS Code documents sandbox controls through sandboxEnabled and sandbox filesystem and network rules. The retrieved documentation describes sandboxing as unavailable on Windows; verify current platform support in the linked documentation before relying on it. When sandboxing is enabled, MCP tool calls are automatically approved because they run inside the controlled environment.
Local, remote, and container setups
Local process
A stdio server starts as a child process on the machine where its configuration is applied. Confirm that its runtime (for example, Node.js), package manager, and working files exist on that machine. A command that works in your terminal may fail in VS Code if it depends on a shell-specific PATH or profile script.
Remote HTTP
An HTTP server stays at its configured URL; VS Code connects to it and may require OAuth, headers, or another server-defined authentication method. Use HTTPS and follow the provider’s authentication instructions rather than copying credentials into the JSON file.
Remote development
With SSH, a remote tunnel, or another remote extension, decide where execution belongs. Workspace and remote-user settings place the server in the remote environment; a user configuration on your local desktop does not automatically move the process to the remote host.
Dev Containers
Declare MCP configuration through customizations.vscode.mcp when the server and its dependencies should travel with the container. Install the runtime and packages inside the image or post-create setup so the configured command resolves there.
Troubleshooting checklist
The server does not appear
- Run
MCP: List Serversand check whether the entry is stopped or failed. - Validate JSON syntax and confirm that native files use
servers, while portable files usemcpServers. - Check Workspace Trust; Restricted Mode blocks workspace MCP startup.
- For a local server, run its command manually in the same environment and verify the executable is on PATH.
The server starts but has no tools
- Open Configure Tools and enable the server’s tools.
- Run
MCP: Reset Cached Toolsif the server recently changed its tool list. - Inspect server logs for initialization or protocol errors.
HTTP authentication fails
- Confirm the URL, required OAuth flow, headers, and token scopes from the server’s documentation.
- Check whether the request is being made from a remote environment with different network access.
- Do not solve the problem by committing a secret to the configuration file.
The wrong machine runs the process
Move the entry to the workspace or remote-user configuration associated with the target environment. Servers run where they are configured; a local profile entry is not a remote deployment mechanism.
Tools are stale after an update
Stop and restart the server, then use MCP: Reset Cached Tools. Reopen Chat if the picker still shows the previous definitions.
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Performance, reliability, and cost considerations
MCP adds a process start and protocol round trip to an agent task. Local servers usually avoid network latency but depend on a correctly installed runtime and stable local process. Remote HTTP servers simplify deployment across machines but depend on DNS, TLS, authentication, and service availability. Keep startup commands deterministic, pin package versions where your security policy permits, and avoid enabling dozens of tools when a small set is sufficient for the task.
VS Code’s MCP documentation provides no general latency, uptime, adoption, or usage statistics. Costs are set by the server provider or underlying service; VS Code itself does not establish a universal MCP price.
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Official references
- Add and manage MCP servers in VS Code
- MCP configuration reference
- MCP developer guide
- Use tools with agents
Frequently Asked Questions
Can I use more than one MCP server in VS Code?
Yes. Add multiple entries under the same configuration object’s servers or mcpServers key, then enable the tools you want in Chat’s Configure Tools picker.
Does VS Code read every MCP file directly?
No. VS Code uses .vscode/mcp.json natively and forwards eligible entries to Agent Host; Agent Host reads .mcp.json and ~/.copilot/mcp-config.json natively, with interactive input variables treated as an exception to forwarding.
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Use stdio for a local process you control and Streamable HTTP when the server is hosted remotely. SSE is documented as legacy support, so prefer the server’s current HTTP transport when available.
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