[OnPrem] Can you connect Visual Studio Code to and work with the Business Central MCP Server?

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Posted on by CC-05111201-0

Hi,I got a local BC Container running and am trying to integrate the copilot agents via VSC. Is it possible and how? I am mostly lost when it comes to the environment configuration in the MCP settings ( URL / Authentication ) .

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Dynamics 365 Business Central

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OussamaSabbouh 17,623 Super User 2026 Season 1 on at

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Hello,

you can’t fully run or test Business Central Copilot agents against a local Docker container because Copilot relies on cloud services, Entra ID, and Microsoft-managed endpoints, so real agent development is only supported against BC online (sandbox). Locally, you can only integrate like a normal client: point your tooling/MCP config to the BC API endpoint of the container and authenticate with Basic auth (user + password or web service access key), e.g. http://localhost:7048/BC/api/v2.0/; this works for calling APIs, not for Copilot runtime. If your goal is actual Copilot/agent development, the correct setup is VS Code → publish to a BC online sandbox → OAuth (Entra app) auth against api.businesscentral.dynamics.com.

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YUN ZHU 101,995 Super User 2026 Season 1 on at

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Hi, If you are referring to the standard Business Central MCP server, it currently only supports SaaS and cannot be used on-premises.

Business Central 2025 wave 2 (BC27.1): Connect AI agents to Business Central through MCP server (Dynamics 365 Business Central MCP)

https://yzhums.com/68873/

Thanks.

ZHU

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CC-05111201-0 90 on at

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rHi, If you are referring to the standard Business Central MCP server, it currently only supports SaaS and cannot be used on-premises.

Business Central 2025 wave 2 (BC27.1): Connect AI agents to Business Central through MCP server (Dynamics 365 Business Central MCP)

https://yzhums.com/68873/

Thanks.

ZHU

Hi, thanks for the answer. That's unfortunate, are there plans for OnPrem solutions?

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CU24040703-0 14 on at

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Check the container's documentation or configuration files for exposed ports and authentication settings. You can also test the endpoint with a browser, curl, or Postman before configuring VS Code.

Sprunki

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Gerardo Rentería Ga... 27,261 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Features not implemented in on-premises deployments - Business Central | Microsoft Learn

Best Regards
Gerardo

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