In depth
Visual Studio Code is the most widely used code editor globally. GitHub Copilot — an AI pair-programmer built on OpenAI models and later Anthropic/Gemini — has been its flagship AI assistant since 2021. In 2025, Microsoft and GitHub added MCP support to Copilot, turning VS Code into a full MCP host.
MCP configuration lives in the Copilot extension settings and `.github/mcp.json` (workspace-level). Once configured, Copilot Chat and Copilot Agent can call MCP tools: read files via filesystem MCP, query a database MCP, open issues via GitHub MCP. The UX is similar to Cursor's Composer — a chat panel that plans and executes.
Copilot Agent supports multi-file edits, command execution, and test running. With MCP, the agent's toolbox extends indefinitely — any MCP server the team configures is available. This makes VS Code attractive for organizations that want Copilot's enterprise features (SOC2, SSO, audit logs) plus MCP's ecosystem.
GitHub ships an official GitHub MCP server, making the pairing especially powerful: Copilot Agent can use GitHub MCP to navigate issues, PRs, actions, and releases with zero extra config.