Copilot Studio

Cross-Tenant Dynamics 365 ERP MCP Fails to Load Tools in Copilot Studio

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Posted on by CU29081204-2

I am testing the Microsoft built-in Dynamics 365 ERP MCP / Fin & Ops Apps (Dynamics 365) tool in Copilot Studio.

Scenario

Copilot Studio agent is in Tenant A

Dynamics 365 Finance & Operations is in Tenant B

Tenant A Power Platform tenant isolation allows outbound connections to Tenant B

Tenant B allows inbound connections from Tenant A

A Fin & Ops Apps OAuth connection created from Tenant A successfully authenticates a native Tenant B F&O user

Copilot Studio client ID 7ab7862c-4c57-491e-8a45-d52a7e023983 is enabled in Tenant B F&O Allowed MCP Clients

Tenant B F&O is version 10.0.48

Dynamics 365 ERP MCP server feature is enabled

Problem

The cross-tenant OAuth connection is successfully created and shows Connected, but when that connection is selected for the Dynamics 365 ERP MCP tool in the Tenant A Copilot Studio agent, Copilot Studio displays:

“Couldn't load MCP tools.”

We performed the following control tests:

Tenant A Copilot Studio → Tenant A F&O: MCP tools load successfully.

VS Code → Tenant B F&O /mcp: authentication succeeds and 22 MCP tools are discovered.

Tenant B Copilot Studio → Tenant B F&O: the Dynamics 365 ERP MCP tools load successfully.

Tenant A Copilot Studio → Tenant B F&O: OAuth succeeds, but “Couldn't load MCP tools.”

Therefore, the F&O MCP server, F&O version, user authentication, Allowed MCP Client configuration and MCP tool catalog have been independently validated.

Question:

Does the Microsoft built-in Dynamics 365 ERP MCP / Fin & Ops Apps (Dynamics 365) tool in Copilot Studio support the following topology?

Copilot Studio Tenant A → OAuth connection using native Tenant B user → Dynamics 365 F&O ERP MCP Tenant B

If cross-tenant ERP MCP tool discovery is supported, what additional configuration is required? If it is not supported, is this a documented limitation?

Categories:

Copilot Studio pre-built agents/templates

Model context protocol

Bot extensibility

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André Arnaud de Cal... 731 on at

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Hi,

I don't think cross-tenant access is part of the design of the Dynamics ERP MCP server. It would create a security risk in my opinion. What is your use case for allowing access across tenants?
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11manish 4,644 Super User 2026 Season 2 on at

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Cross-tenant OAuth authentication may succeed, but that does not mean cross-tenant MCP tool discovery is supported. The "Couldn't load MCP tools" behavior is most likely a limitation/compatibility gap in the Copilot Studio MCP integration, and Microsoft needs to confirm whether this topology is officially supported.
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Valantis 7,381 Super User 2026 Season 2 on at

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Hi @CU29081204-2,

Read through Microsoft's full current Known limitations list for the Dynamics 365 ERP MCP server, updated August 19 2026. Cross-tenant topology isn't mentioned anywhere in it, not as supported, not as a limitation.

The 10 listed items cover language, dates, unsupported controls, form tabs, attachments, excluded admin forms, advanced filters, environment downtime, and Copilot for F&O sidecar support, nothing about tenant boundaries.https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/copilot/copilot-mcp

this isn't a documented limitation. Neither supported nor blocked by design shows up anywhere in the official docs, this genuinely looks like unaddressed territory rather than a known gap.

Given your own testing already isolates it to specifically Tenant A to Tenant B, same OAuth mechanism working same tenant on both sides, VS Code succeeding cross tenant against the same target, that's a tighter repro than most support tickets ever get. Worth filing one with that exact control test matrix, that's the only path likely to get a real answer here.

Best regards,

Valantis ✅ If this helped solve your issue, please Accept as Solution so others can find it quickly.

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🏷️ For follow-ups @Valantis.

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