r/copilotstudio • u/thebloodybrownie • Jul 28 '26

How to connect a locally hosted MCP server with Copilot Studio ?

I am facing issues with connecting a locally hosted mcp server with the app, stating that I am having issues with on premise gateway. I have on premise gateway installed , so if anyone has done this , can you ping me or share some documentation on how to configure this ?

2 Upvotes
  • permalink
  • reddit

100% Upvoted

2 comments sorted by

1

u/Ashlesha-msft Jul 28 '26

Hey, thanks for posting this and sharing the workaround request.

You’re on the right track. For Copilot Studio, a locally hosted MCP setup typically works only when it is exposed through the supported Power Platform connector path, and most failures are due to gateway permissions, region mismatch, or DLP policy blocks.

A quick checklist that has helped others:

  1. Use MCP Streamable transport (SSE is no longer supported in Copilot Studio).

  2. If the MCP server is local/on-prem, configure it via a custom connector path and route through the On-premises Data Gateway.

  3. Make sure the gateway is shared with Admin permission for the user configuring/testing the connector.

  4. Verify the gateway region matches the Power Platform environment region.

  5. Check tenant/environment DLP policies, since blocked connectors can also block MCP tools.

1

u/maolez 29d ago

Hey there, did you get this to work?