MCP Setup — Configuring MCP Servers with GitHub Copilot

Model Context Protocol (MCP) servers extend what Copilot agents can do by giving them tools that reach outside the codebase — reading GitHub issues and pull requests, running Playwright tests, querying Azure DevOps work items, and more.

This page explains how to configure MCP servers for use with GitHub Copilot agent mode, and how to reference MCP tools in your agent files.

Defra MCP guidance

Before enabling any MCP server, check the Defra MCP guidance (opens in new tab) for the current approved list, data handling assessments, and any restrictions.

Only use MCP servers from the Defra-approved list. Do not enable community or self-built MCP servers on Defra projects.

How MCP works with Copilot

When you configure an MCP server in .vscode/mcp.json, its tools become available in Copilot’s agent mode. Agents can then list those tools in their tools frontmatter array and call them during a task without leaving the chat panel.

For example, with the GitHub MCP server configured, an agent can read open issues, search for pull requests, and post a review comment — all from within Copilot Chat.

Configuration file

Configure MCP servers for your repository in .vscode/mcp.json. This file is workspace-scoped — it applies to everyone who opens the repository in VS Code with Copilot.

Commit .vscode/mcp.json to your repository so the configuration is shared across the team.

Example `.vscode/mcp.json`

{
  "servers": {
    "github": {
      "type": "http",
      "url": "https://api.githubcopilot.com/mcp/",
      "gallery": true
    },
    "playwright": {
      "type": "stdio",
      "command": "npx",
      "args": ["@playwright/mcp@latest"]
    }
  }
}

Before committing this file, confirm each server is on the Defra approved list (opens in new tab) and review how it handles your data. Remove server entries that your project does not need.

Referencing MCP tools in agents

Once you configure an MCP server, reference it in the tools array of your agent’s frontmatter using the server key from mcp.json:

---
description: Builds Defra-compliant applications with GitHub integration
tools: [codebase, editFiles, runTerminal, thinking, github]
---

The github entry here matches the "github" key in the mcp.json servers object.

Common tool combinations

These examples use VS Code tool sets (edit, execute, read, search, web, agent) — each one bundles all the related built-in tools (e.g. execute includes runInTerminal, createAndRunTask, testFailure, runNotebookCell, getTerminalOutput). Using tool sets gives an agent full Agent-mode capability in one entry instead of a long brittle list, and is the recommended pattern in the official VS Code chat tools reference (opens in new tab).

Use case	Tools to include
Full autonomous developer (default)	`edit, execute, read, search, web, findTestFiles, githubRepo, usages, changes, todos, thinking`
Tester (TDD, runs and fixes test failures)	`edit, execute, read, search, web, findTestFiles, usages, changes, todos, thinking`
Read-only reviewer	`read, search, web, findTestFiles, githubRepo, usages, changes, thinking`
Frontend / accessibility (no terminal)	`edit, read, search, web, usages, changes, todos, thinking`
Orchestrator with subagents	Add `agent`
Repo / workspace scaffolding	Add `newWorkspace, vscode/extensions, vscode/getProjectSetupInfo, vscode/installExtension, vscode/runCommand`
With GitHub MCP integration	Add `github`
With Playwright end-to-end testing	Add `playwright`

What the tool sets bundle

edit — createDirectory, createFile, editFiles, editNotebook
execute — runInTerminal, createAndRunTask, testFailure, runNotebookCell, getTerminalOutput
read — readFile, problems, terminalLastCommand, terminalSelection, getNotebookSummary, readNotebookCellOutput
search — codebase, fileSearch, textSearch, listDirectory, usages, changes
web — fetch
agent — runSubagent (delegate to other agents)

Other built-in tools worth knowing

todos — visible progress checklist (essential for any multi-step agent)
newWorkspace — scaffold a new VS Code workspace
selection — current editor selection
vscode/extensions, vscode/installExtension, vscode/runCommand, vscode/getProjectSetupInfo — VS Code-specific scaffolding helpers

VS Code silently ignores tool names it does not recognise (opens in new tab), so you can safely add MCP server tools (e.g. github, playwright) and extension-contributed tools without breaking the agent if they aren’t installed.

Security considerations

MCP servers act with the permissions of the authenticated user — they can read and write to the connected service
Do not configure MCP servers with access to production systems on development machines
Review what data each MCP server sends to its backend before enabling it on a project handling sensitive or OFFICIAL-SENSITIVE data
MCP server credentials must never be committed to source control — use environment variables or VS Code user settings for any required tokens
The .vscode/mcp.json file itself should contain no secrets — only server configuration (URLs, commands, arguments)

MCP and multi-agent workflows

MCP tools significantly extend what you can achieve with the Orchestrator agent. An orchestrator can use the GitHub MCP tool to read an issue description, delegate implementation to @defra-app-developer, then use the same tool to draft a pull request — without leaving the Copilot chat panel.

The Playwright MCP server is particularly useful with the Tester agent, giving it the ability to run end-to-end tests directly and report results back into the conversation.

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