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https://github.com/localden/remote-auth-mcp-apim-py

Remote MCP server with auth gated by Azure API Management
https://github.com/localden/remote-auth-mcp-apim-py

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Remote MCP server with auth gated by Azure API Management

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# 🀫 Authenticated Remote MCP Server

This sample shows how to deploy an Entra ID-protected MCP server on Azure.

The sample also uses an authorization pattern where the client acquires a token _for the MCP server_ first, and then uses [on-behalf-of flow](https://learn.microsoft.com/entra/identity-platform/v2-oauth2-on-behalf-of-flow) to exchange it for a token that can be used with [Microsoft Graph](https://learn.microsoft.com/graph/overview). It does all this in an entirely secretless manner too.

## ⚠️ Important: Experimental Implementation

>[!IMPORTANT]
> **This is an experimental implementation and should NOT be used in production scenarios.**
>
> This sample demonstrates how to build a protected MCP server with Entra ID by implementing OAuth 2.0 Dynamic Client Registration and PKCE flow patterns that work around current gaps in Entra ID's native support for these standards. While it showcases the technical possibilities, it's intended for educational and proof-of-concept purposes only.
>
> For production scenarios, consider using established authentication patterns with pre-registered applications and standard OAuth flows.

## What it uses

- ⚑ [Azure Functions](https://learn.microsoft.com/azure/azure-functions/functions-overview)
- πŸ•ΈοΈ [Azure API Management](https://learn.microsoft.com/azure/api-management/api-management-key-concepts)
- πŸ’ͺ [Bicep](https://learn.microsoft.com/azure/azure-resource-manager/bicep/)
- 🐍 [Python](https://www.python.org/)
- πŸš€ [Azure Developer CLI](https://learn.microsoft.com/azure/developer/azure-developer-cli/install-azd?tabs=winget-windows%2Cbrew-mac%2Cscript-linux&pivots=os-windows)

>[!NOTE]
>You can use the [Model Context Protocol Inspector](https://modelcontextprotocol.io/docs/tools/inspector) or [Visual Studio Code](https://code.visualstudio.com) to test this MCP server.

## How the Authorization Flow Works

This implementation uses a sophisticated OAuth 2.0 flow with PKCE (Proof Key for Code Exchange) to securely authenticate MCP clients. Here's how it all fits together:

```mermaid
sequenceDiagram
participant Client as MCP Client
participant Browser as User's Browser
participant APIM as API Management
participant Entra as Entra ID
participant Function as Azure Function
participant Graph as Microsoft Graph

Note over Client,Graph: 1. Discovery & Registration
Client->>APIM: GET /.well-known/oauth-authorization-server
APIM->>Client: OAuth metadata (authorization_endpoint, token_endpoint, etc.)

Client->>APIM: POST /register (Dynamic Client Registration)
Note over APIM: Store client info in CosmosDB
Generate unique client_id
APIM->>Client: Client credentials (client_id, no secret)

Note over Client,Graph: 2. Authorization with PKCE
Note over Client: Generate code_verifier & code_challenge
Client->>Browser: Open authorization URL with PKCE params
Browser->>APIM: GET /authorize?client_id=...&code_challenge=...

Note over APIM: Check for existing consent cookie
πŸͺ __Host-MCP_APPROVED_CLIENTS
alt No previous consent
APIM->>Browser: Redirect to /consent page
Note over Browser: User reviews permissions and clicks "Allow"
Browser->>APIM: POST /consent (with CSRF protection)
Note over APIM: Set consent cookie
πŸͺ __Host-MCP_APPROVED_CLIENTS
πŸͺ __Host-MCP_CONSENT_STATE
end

APIM->>Browser: Redirect to Entra ID with state correlation
Note over APIM: Set Entra state cookie
πŸͺ __Host-MCP_ENTRA_STATE
(contains sessionId|entraidState|clientState)

Browser->>Entra: Authorize with Entra ID
Note over Browser: User authenticates with Entra ID
Entra->>APIM: Callback with authorization code

Note over APIM: Validate state correlation
Exchange code for Entra access token
Generate encrypted session token
APIM->>Browser: Redirect with MCP authorization code

Note over Client,Graph: 3. Token Exchange
Browser->>APIM: POST /token (code + code_verifier)
Note over APIM: Validate PKCE challenge
Return encrypted session token
APIM->>Browser: Access token (encrypted session key)
Browser->>Client: Token for MCP communication

Note over Client,Graph: 4. Authenticated MCP Communication
Client->>APIM: GET /mcp/sse (with Bearer token)
Note over APIM: Decrypt session token
Lookup cached Entra token
Add to request for downstream
APIM->>Function: Forward with Entra access token

Function->>Graph: API calls using on-behalf-of flow
Graph->>Function: User data
Function->>APIM: MCP response
APIM->>Client: Authenticated MCP response
```

### Security Features & Cookies Used

This implementation uses several security mechanisms and cookies to ensure a secure flow:

| Cookie | Purpose |
|--------|---------|
| `__Host-MCP_APPROVED_CLIENTS` | Remembers user consent for specific clients |
| `__Host-MCP_DENIED_CLIENTS` | Remembers denied consent to prevent re-prompting |
| `__Host-MCP_CONSENT_STATE` | Validates consent form submissions |
| `__Host-MCP_ENTRA_STATE` | Correlates Entra ID callback with original request |
| `__Host-MCP_CSRF_TOKEN` | Protects against CSRF attacks on consent forms |

>[!NOTE]
> All cookies use `__Host-` prefix, Secure, HttpOnly, and SameSite=Lax for maximum security (except `__Host-MCP_ENTRA_STATE` which uses SameSite=None for cross-site redirects).

**Key Security Features:**

- πŸ” **PKCE (Proof Key for Code Exchange)** - Prevents authorization code interception
- πŸͺ **Secure Cookies** - All cookies use `__Host-` prefix for maximum security
- πŸ›‘οΈ **CSRF Protection** - Double-submit cookie pattern with constant-time validation
- πŸ”„ **State Correlation** - Multiple layers of state validation prevent session fixation
- πŸ”’ **Encrypted Session Tokens** - Session identifiers are AES-encrypted
- ⏰ **Token Caching** - Entra tokens cached with encrypted session keys for performance

## Getting started

Follow these steps to get started.

1. [Install the Azure Developer CLI](https://learn.microsoft.com/azure/developer/azure-developer-cli/install-azd).

2. Clone the repository locally:

```bash
git clone https://github.com/localden/remote-auth-mcp-apim-py
```

3. Navigate to the repository in your terminal:

```bash
cd remote-auth-mcp-apim-py
```

4. Ensure the `Microsoft.App` resource provider is registered on your subscription either on the [Azure portal](https://learn.microsoft.com/azure/azure-resource-manager/management/resource-providers-and-types#azure-portal) or by running the following [Azure CLI command](https://learn.microsoft.com/cli/azure/install-azure-cli?view=azure-cli-latest):

```bash
az login
az provider register --namespace Microsoft.App --wait
```

5. Log in to Azure Developer CLI:

```bash
azd auth login
```

6. Deploy the project to Azure:

```bash
azd up
```

>[!IMPORTANT]
>Deploying this project will incur Azure cost. If you are deploying for testing and experimentation, make sure to delete the created resource group after testing.

## Deploying and testing the project

When you run `azd up`, resources declared in the [`infra`](https://github.com/localden/remote-auth-mcp-apim-py/tree/main/infra) directory will be provisioned in your Azure account. You can go through the existing Bicep files to see what infrastructure will be automatically deployed.

![GIF showing the deployment of Azure resources with Azure Developer CLI](./media/deploy-azd.gif)

Once the deployment completes, you will be see the **endpoint** printed in the terminal:

![Endpoint in the terminal](./media/completed-deploy.png)

For example, in the screenshot above the endpoint is `https://apim-2lzunaz2nu642.azure-api.net/mcp/sse`. Copy it.

>[!NOTE]
>Prior to the next step, make sure that you have [Node.js](https://nodejs.org/en) installed - it's required to run the [Model Context Protocol Inspector](https://modelcontextprotocol.io/docs/tools/inspector).

In your terminal, run:

```bash
npx @modelcontextprotocol/inspector@0.9.0
```

>[!NOTE]
>We're using the `0.9.0` release of the Model Context Protocol Inspector because it's the most stable version when it comes to testing protected MCP servers.

This will give an endpoint where you can see Model Context Protocol Inspector running locally. Open the URL in your browser.

Switch the **Transport Type** to **SSE** and set the **URL** to the endpoint that you got from running the deployment. Click **Connect**.

![Authenticating in the MCP Inspector](./media/mcp-auth.gif)

You will be prompted to authenticate with the credentials **in the tenant in which you deployed the infrastructure**. The Entra ID applications are dynamically registered at deployment time - one for the server, and another that will be used for [on-behalf-of flow](https://learn.microsoft.com/entra/identity-platform/v2-oauth2-on-behalf-of-flow) to acquire [Microsoft Graph](https://learn.microsoft.com/graph/use-the-api) access.

Once you consent, you will be returned back to the Model Context Protocol Inspector landing page. Wait a few seconds until the connection is established - you will see a green **Connected** label on the page.

![Connected MCP server in MCP Inspector](./media/connected-mcp-server.png)

Once connected, click on **List Tools** and select `get_graph_user_details`. This will enable you to get data about the currently authenticated user from Microsoft Graph. Click **Run Tool**.

![List tools in MCP Inspector and trigger the one that returns user details from Graph](./media/list-tools.gif)

If all goes well, you will see your user data in the response block, like this:

```json
{
"@odata.context": "https://graph.microsoft.com/v1.0/$metadata#users/$entity",
"businessPhones": [],
"displayName": "YOUR_NAME",
"givenName": null,
"jobTitle": null,
"mail": "YOUR_EMAIL",
"mobilePhone": null,
"officeLocation": null,
"preferredLanguage": null,
"surname": null,
"userPrincipalName": "YOUR_UPN",
"id": "c6b77314-c0ec-44b2-b0bb-2c971a753f0c",
"success": true
}
```

## Feedback and reporting issues

Make sure to [open an issue](https://github.com/localden/remote-auth-mcp-apim-py/issues) if you encounter any roadblocks or have comments.