When you want your Copilot Studio agents to use the Dataverse MCP, the built in Dataverse MCP connector will only connect to Dataverse MCP in the same environment as the agent is running.

To use Dataverse MCP from a Copilot Studio agent across Power Platform Environments a few more steps are involved:

• Enable MCP in the Dataverse environment
• Create an App Registration in Entra ID
• Create an app user for the App registration in the Dataverse environment
• Add security roles to the app user
• Add an MCP Server tool in Copilot Studio

Instructions

In the Dataverse environment, environment B in the previous illustration, you need to make sure that Dataverse MCP is enabled. I believe this is enabled by default but check to make sure.
Navigate to the Power Platform Admin Center, find you environment under Manage and click Settings – Features.

Find the Dataverse Model Context Protocol section and make sure Allow MCP Clients to interact with Dataverse MCP server is checked.

App registration in Entra ID

• Navigate to the Microsoft Entra admin center at https://entra.microsoft.com/
• Go to App registration and click New registration
• Give the app registration a name and click register, we will add the redirect URI later, we will get that from the connector setup in Copilot Studio
• Go to API permission in the App registration
• Click Add permissions and find mcp.tools and user_impersonation under Dynamics 365

• Click grant admin consent
• Click Certificates & Secrets
• Click New client secret to create a new secret
• Give the secret a description and select how long until it expires. You should have some sort of procedure in place to update client secrets before they expire to make sure the app registration still can be used for authentication
• Click Add
• Make sure to copy the value of the new secret once it’s created, you will not be able to copy that later and would have to create a new secret

Also copy the Application ID and tenant id from the Overview section. We will use both of these later when we configure the MCP connector in the agent

App user in Dataverse

Go back to the Power Platform Admin Center and your Dataverse environment. Navigate to Settings, Users + permissions and click Application users.

Click + New app user then + Add an app

You should find the Entra ID App registration you just created in the previous step. Add the app and give it one or more Security Roles. Click create.

You have now made your Dataverse environment trusted by the OAuth app registration you created.

Copilot Studio

Let’s now go to Copilot Studio in the environment where we will create our agent. Environment A in the first illustration.

Create your agent and add a tool. Select to add the Model Context Protocol tool.

Give it a server name and a server description. The server URL should be set to the URL of your Dataverse environment and add /api/mcp to the end. Like this: https:// <dataverseOrgName>.crm4.dynamics.com/api/mcp

You can find the URL for your environment in the Power Platform Admin Center.

We will have to use OAuth 2.0 authentication for the App registration we created earlier.

So, select OAuth 2.0 and then type to manual.

Fill in the following information:

Client ID	Application (client) ID from your Entra ID app registration. You copied this earlier
Client secret	Client secret value you created in the app registration
Authorization URL	https://login.microsoftonline.com/{tenant-id}/oauth2/v2.0/authorize
Token URL template	https://login.microsoftonline.com/{tenant-id}/oauth2/v2.0/token
Refresh URL	https://login.microsoftonline.com/{tenant-id}/oauth2/v2.0/token
Scopes	https://{dataverseOrgName}.crm4.dynamics.com/.default
Redirect URL	Automatically generated when you click Create. You will use this in the app registration created earlier

Click the Create button to create the connection. After clicking create you will be presented with the Redirect URL. Copy the redirect URL, we will need this in the app registration we created earlier.

Click Next and create or select a connection.

Then click Add and configure.

Before clicking Create on the next screen we can go back to our App registration in Entra ID and add the Redirect URL we copied.

In the App registration, select Authentication and click Add redirect URI

Select Web and paste in the Redirect URL you copied from Copilot Studio. Leave the other settings as is.

Go back to Copilot Studio and click Create and the Add and configure to add the connector.

The connector is now added, and you will probably get a connection error.

Relax, this is normal, you should get an error because your app registration is not allowed to access dataverse in environment you are trying to connect to.

We need to go back to the Power Platform Admin Center, find our Dataverse environment and go to Settings > Features. In the Dataverse Model Context Protocol section there is an Advanced settings link.

This will open the Allowed MCP Clients list. We need to create an entry here for our Entra ID App registration.

Click New in the menu bar to add a new entry:

Give it a descriptive name.

The Unique Name field needs a prefix, it looks like anything will do here so I just added pre_ as my prefix, and then a unique name.

The Application ID will be the id of the Entra id App registration we created.

Set Is Enabled to Yes and save the entry.

We have now allowed our app registration and by extension our agent access to Dataverse in this environment via MCP.

Go back to Copilot Studio and click refresh in the MCP tool.

And that’s it. If everything went as planned, you should now see all the available tools from the Dataverse MCP in the other environment.

And you can now test your agent in Copilot Studio. I will try and ask how many Accounts we have in our CRM system as a test:

You should be able to follow the activity and see that the MCP Tools are used to find the accounts.

You can ask follow-up questions to test further, like “What are their names?” to execute the MCP tool again.

Oppsummering

To use Dataverse MCP from an agent in a different Power Platform environment involves a few steps:

• Enable MCP in the Dataverse environment
• Create an App Registration in Entra ID
• Create an app user for the App registration in the Dataverse environment
• Add security roles to the app user
• Add an MCP Server tool in Copilot Studio
• Add the app registration to the Allowed MCP Clients list in the Dataverse environment