We have a Custom Copilot Connector built from an OpenAPI specification for a third-party REST API that is hosted on-premises. To connect to this API, we are using an On-Premises Data Gateway configured within our environment.
As part of setting up this connector in Microsoft Copilot Studio, we need to establish a connection so that the associated tools can be used by the agent. However, we are running into an issue during this connection setup process.
Issue observed:
When creating the connection in Microsoft Copilot Studio, we are able to successfully select the On-Premises Data Gateway from the available options. However, after the connection is created and we click the refresh button, the connection continues to show a "stale" or "not connected" status. This occurs despite the following having been verified:
The On-Premises Data Gateway is installed, running, and shows a healthy status.
The third-party REST API is reachable and responds correctly when accessed through the gateway (tested independently of Copilot Studio).
As a result of this connection not establishing properly, whenever we attempt to invoke a tool call from the Copilot Studio agent that relies on this connector, the agent prompts us to create the connection again. Repeating the connection creation process does not resolve the issue, and the connection remains in the same stale or disconnected state.
Based on Microsoft documentation, these are the key checks for custom connectors over an On-Premises Data Gateway in Copilot Studio:
1. Use a standard on-premises gateway (not personal mode).
2. For custom connectors, gateway access must be Admin level.
3. “Can use” / “Can use + share” is not sufficient for custom connectors.
4. Confirm the gateway region matches the Power Platform environment region.
5. Verify that no DLP policy is blocking the custom connector (or HTTP-related usage in your environment).
6. Create and test the connector connection in Power Apps or Power Automate first, then use that same connection from Copilot Studio.
If all of these are correct and the connection still remains stale, please share environment ID, gateway region, connector name, and timestamp of the failed refresh so we can help narrow it down.
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