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MCP server built using FastMCP with API authentication, agent as tool and keyless authentication w/ Azure OpenAI

Dec 6, 2025

If you need to develop an MCP server hosting a common set of tools for AI agents, read this post!

Built with FastMCP and FastAPI, with example for both agents (wrapped in tool) using Microsoft Azure OpenAI with authentication using managed identity, and normal function tools (regular Python function).

I deployed this on Azure App Service (Linux) with Python 3.11 runtime. I created this single-file gist as a reference template, you need to adjust here and there and modularize as per your needs.