MCP Server Development Guide
Overview
Create MCP (Model Context Protocol) servers that enable LLMs to interact with external services through well-designed tools. The quality of an MCP server is measured by how well it enables LLMs to accomplish real-world tasks.
Microsoft MCP Ecosystem
Microsoft provides extensive MCP infrastructure for Azure and Foundry services. Understanding this ecosystem helps you decide whether to build custom servers or leverage existing ones.
Server Types
| Type | Transport | Use Case | Example |
|---|---|---|---|
| Local | stdio | Desktop apps, single-user, local dev | Azure MCP Server via NPM/Docker |
| Remote | Streamable HTTP | Cloud services, multi-tenant, Agent Service | https://mcp.ai.azure.com (Foundry) |
Microsoft MCP Servers
Before building a custom server, check if Microsoft already provides one:
| Server | Type | Description |
|---|---|---|
| Azure MCP | Local | 48+ Azure services (Storage, KeyVault, Cosmos, SQL, etc.) |
| Foundry MCP | Remote | https://mcp.ai.azure.com - Models, deployments, evals, agents |
| Fabric MCP | Local | Microsoft Fabric APIs, OneLake, item definitions |
| Playwright MCP | Local | Browser automation and testing |
| GitHub MCP | Remote | https://api.githubcopilot.com/mcp |
Full ecosystem: See 🔷 Microsoft MCP Patterns for complete server catalog and patterns.
When to Use Microsoft vs Custom
| Scenario | Recommendation |
|---|---|
| Azure service integration | Use Azure MCP Server (48 services covered) |
| AI Foundry agents/evals | Use Foundry MCP remote server |
| Custom internal APIs | Build custom server (this guide) |
| Third-party SaaS integration | Build custom server (this guide) |
| Extending Azure MCP | Follow Microsoft MCP Patterns |
Process
🚀 High-Level Workflow
Creating a high-quality MCP server involves four main phases:
Phase 1: Deep Research and Planning
1.1 Understand Modern MCP Design
API Coverage vs. Workflow Tools: Balance comprehensive API endpoint coverage with specialized workflow tools. Workflow tools can be more convenient for specific tasks, while comprehensive coverage gives agents flexibility to compose operations. Performance varies by client—some clients benefit from code execution that combines basic tools, while others work better with higher-level workflows. When uncertain, prioritize comprehensive API coverage.
Tool Naming and Discoverability:
Clear, descriptive tool names help agents find the right tools quickly. Use consistent prefixes (e.g., github_create_issue, github_list_repos) and action-oriented naming.
Context Management: Agents benefit from concise tool descriptions and the ability to filter/paginate results. Design tools that return focused, relevant data. Some clients support code execution which can help agents filter and process data efficiently.
Actionable Error Messages: Error messages should guide agents toward solutions with specific suggestions and next steps.
1.2 Study MCP Protocol Documentation
Navigate the MCP specification:
Start with the sitemap to find relevant pages: https://modelcontextprotocol.io/sitemap.xml
Then fetch specific pages with .md suffix for markdown format (e.g., https://modelcontextprotocol.io/specification/draft.md).
Key pages to review:
- •Specification overview and architecture
- •Transport mechanisms (streamable HTTP, stdio)
- •Tool, resource, and prompt definitions
1.3 Study Framework Documentation
Language Selection:
| Language | Best For | SDK |
|---|---|---|
| TypeScript (recommended) | General MCP servers, broad compatibility | @modelcontextprotocol/sdk |
| Python | Data/ML pipelines, FastAPI integration | mcp (FastMCP) |
| C#/.NET | Azure/Microsoft ecosystem, enterprise | Microsoft.Mcp.Core |
Transport Selection:
| Transport | Use Case | Characteristics |
|---|---|---|
| Streamable HTTP | Remote servers, multi-tenant, Agent Service | Stateless, scalable, requires auth |
| stdio | Local servers, desktop apps | Simple, single-user, no network |
Load framework documentation:
- •MCP Best Practices: 📋 View Best Practices - Core guidelines
For TypeScript (recommended):
- •TypeScript SDK: Use WebFetch to load
https://raw.githubusercontent.com/modelcontextprotocol/typescript-sdk/main/README.md - •⚡ TypeScript Guide - TypeScript patterns and examples
For Python:
- •Python SDK: Use WebFetch to load
https://raw.githubusercontent.com/modelcontextprotocol/python-sdk/main/README.md - •🐍 Python Guide - Python patterns and examples
**For C#/.NET (Microsoft ecosy