MCP Server Development Guide

When to Use

Use this skill when building MCP servers to integrate external APIs or services, whether in Python (FastMCP) or Node/TypeScript (MCP SDK).

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

Microsoft MCP Servers

Before building a custom server, check if Microsoft already provides one:

Full ecosystem: See 🔷 Microsoft MCP Patterns for complete server catalog and patterns.

When to Use Microsoft vs Custom

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:

Transport Selection:

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 ecosystem):

• 🔷 Microsoft MCP Patterns - C# patterns, Azure MCP architecture, command hierarchy

1.4 Plan Your Implementation

Understand the API: Review the service's API documentation to identify key endpoints, authentication requirements, and data models. Use web search and WebFetch as needed.

Tool Selection: Prioritize comprehensive API coverage. List endpoints to implement, starting with the most common operations.

Phase 2: Implementation

2.1 Set Up Project Structure

See language-specific guides for project setup:

• ⚡ TypeScript Guide - Project structure, package.json, tsconfig.json
• 🐍 Python Guide - Module organization, dependencies
• 🔷 Microsoft MCP Patterns - C# project structure, command hierarchy

2.2 Implement Core Infrastructure

Create shared utilities:

• API client with authentication
• Error handling helpers
• Response formatting (JSON/Markdown)
• Pagination support

2.3 Implement Tools

For each tool:

Input Schema:

• Use Zod (TypeScript) or Pydantic (Python)
• Include constraints and clear descriptions
• Add examples in field descriptions

Output Schema:

• Define outputSchema where possible for structured data
• Use structuredContent in tool responses (TypeScript SDK feature)
• Helps clients understand and process tool outputs

Tool Description:

• Concise summary of functionality
• Parameter descriptions
• Return type schema

Implementation:

• Async/await for I/O operations
• Proper error handling with actionable messages
• Support pagination where applicable
• Return both text content and structured data when using modern SDKs

Annotations:

• readOnlyHint: true/false
• destructiveHint: true/false
• idempotentHint: true/false
• openWorldHint: true/false

Phase 3: Review and Test

3.1 Code Quality

Review for:

• No duplicated code (DRY principle)
• Consistent error handling
• Full type coverage
• Clear tool descriptions

3.2 Build and Test

TypeScript:

• Run npm run build to verify compilation
• Test with MCP Inspector: npx @modelcontextprotocol/inspector

Python:

• Verify syntax: python -m py_compile your_server.py
• Test with MCP Inspector

See language-specific guides for detailed testing approaches and quality checklists.

Phase 4: Create Evaluations

After implementing your MCP server, create comprehensive evaluations to test its effectiveness.

Load ✅ Evaluation Guide for complete evaluation guidelines.

4.1 Understand Evaluation Purpose

Use evaluations to test whether LLMs can effectively use your MCP server to answer realistic, complex questions.

4.2 Create 10 Evaluation Questions

To create effective evaluations, follow the process outlined in the evaluation guide:

1. Tool Inspection: List available tools and understand their capabilities
2. Content Exploration: Use READ-ONLY operations to explore available data
3. Question Generation: Create 10 complex, realistic questions
4. Answer Verification: Solve each q