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Connect a Foundry IQ knowledge base to Foundry Agent Service

Items marked (preview) in this article are currently in public preview. This preview is provided without a service-level agreement, and we don’t recommend it for production workloads. Certain features might not be supported or might have constrained capabilities. For more information, see Supplemental Terms of Use for Microsoft Azure Previews.
In this article, you learn how to connect a knowledge base in Foundry IQ to an agent in Foundry Agent Service. The connection uses the Model Context Protocol (MCP) to facilitate tool calls. When invoked by the agent, the knowledge base orchestrates the following operations:
  • Plans and decomposes a user query into subqueries.
  • Processes the subqueries simultaneously using keyword, vector, or hybrid techniques.
  • Applies semantic reranking to identify the most relevant results.
  • Synthesizes the results into a unified response with source references.
The agent uses the response to ground its answers in enterprise data or web sources, ensuring factual accuracy and transparency through source attribution. For an end-to-end example of integrating Azure AI Search and Foundry Agent Service for knowledge retrieval, see the agentic-retrieval-pipeline-example Python sample on GitHub.

Usage support

Microsoft Foundry supportPython SDKC# SDKJavaScript SDKJava SDKREST APIBasic agent setupStandard agent setup
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Prerequisites

Authentication and permissions

We recommend role-based access control for production deployments. If roles aren’t feasible, skip this section and use key-based authentication instead.
  • On the parent resource of your project, you need the Azure AI User role to access model deployments and create agents. Owners automatically get this role when they create the resource. Other users need a specific role assignment. For more information, see Role-based access control in Foundry portal.
  • On the parent resource of your project, you need the Azure AI Project Manager role to create a project connection for MCP authentication and either Azure AI User or Azure AI Project Manager to use the MCP tool in agents.
  • On your project, create a system-assigned managed identity for interactions with Azure AI Search.

Required values

Use the following values in the code samples.
ValueWhere to get itExample
Project endpoint (project_endpoint)Find it in your project details in the Microsoft Foundry portal.https://your-resource.services.ai.azure.com/api/projects/your-project
Project resource ID (project_resource_id)Copy the project ARM resource ID from Azure portal or use Azure CLI to query the resource ID./subscriptions/.../resourceGroups/.../providers/Microsoft.MachineLearningServices/workspaces/.../projects/...
Azure AI Search endpoint (search_service_endpoint)Find it on your Azure AI Search service Overview page (the service URL) in the Azure portal.https://your-search-service.search.windows.net
Knowledge base name (knowledge_base_name)Use the knowledge base name you created in Azure AI Search.hr-policy-kb
Project connection name (project_connection_name)Choose a name for the project connection you create.my-kb-mcp-connection
Agent name (agent_name)Choose a name for the agent version you create.hr-assistant
Model deployment name (deployed_LLM)Find it in your Microsoft Foundry project model deployments.gpt-4.1-mini
We recommend you store the project endpoint, search endpoint, and knowledge base name in a .env file for local development.

Create a project connection

Create a RemoteTool connection on your Microsoft Foundry project. This connection uses the project’s managed identity to target the MCP endpoint of the knowledge base, allowing the agent to securely communicate with Azure AI Search for retrieval operations.
The RemoteTool category and ProjectManagedIdentity authentication type are specific to Microsoft Foundry project connections.
import requests
from azure.identity import DefaultAzureCredential, get_bearer_token_provider

# Provide connection details
credential = DefaultAzureCredential()
project_resource_id = "{project_resource_id}" # e.g. /subscriptions/{subscription}/resourceGroups/{resource_group}/providers/Microsoft.MachineLearningServices/workspaces/{account_name}/projects/{project_name}
project_connection_name = "{project_connection_name}"
mcp_endpoint = "{search_service_endpoint}/knowledgebases/{knowledge_base_name}/mcp?api-version=2025-11-01-preview" # This endpoint enables the MCP connection between the agent and knowledge base

# Get bearer token for authentication
bearer_token_provider = get_bearer_token_provider(credential, "https://management.azure.com/.default")
headers = {
  "Authorization": f"Bearer {bearer_token_provider()}",
}

# Create project connection
response = requests.put(
  f"https://management.azure.com{project_resource_id}/connections/{project_connection_name}?api-version=2025-10-01-preview",
  headers = headers,
  json = {
    "name": project_connection_name,
    "type": "Microsoft.MachineLearningServices/workspaces/connections",
    "properties": {
      "authType": "ProjectManagedIdentity",
      "category": "RemoteTool",
      "target": mcp_endpoint,
      "isSharedToAll": True,
      "audience": "https://search.azure.com/",
      "metadata": { "ApiType": "Azure" }
    }
  }
)

response.raise_for_status()
print(f"Connection '{project_connection_name}' created or updated successfully.")

Optimize agent instructions for knowledge retrieval

To improve knowledge base invocations and produce citation-backed answers, start with instructions like the following:
You are a helpful assistant.

Use the knowledge base tool to answer user questions.
If the knowledge base doesn't contain the answer, respond with "I don't know".

When you use information from the knowledge base, include citations to the retrieved sources.
This instruction template optimizes for:
  • Higher MCP tool invocation rates: Explicit directives ensure the agent consistently calls the knowledge base tool rather than relying on its training data.
  • Clear source attribution: Citations make it easier to validate where information came from.
While this template provides a strong foundation, evaluate and iterate on the instructions based on your specific use case and objectives. Test different variations to find what works best for your scenario.

Create an agent with the MCP tool

Create an agent that integrates the knowledge base as an MCP tool. The agent uses a system prompt to instruct when and how to call the knowledge base. It follows instructions on how to answer questions and automatically maintains its tool configuration and settings across conversation sessions. Add the knowledge base MCP tool with the project connection you previously created. This tool orchestrates query planning, decomposition, and retrieval across configured knowledge sources. The agent uses this tool to answer queries.
Azure AI Search knowledge bases expose the knowledge_base_retrieve MCP tool for agent integration. This is the only tool currently supported for use with Foundry Agent Service.
from azure.ai.projects import AIProjectClient
from azure.ai.projects.models import PromptAgentDefinition, MCPTool
from azure.identity import DefaultAzureCredential

# Provide agent configuration details
credential = DefaultAzureCredential()
mcp_endpoint = "{search_service_endpoint}/knowledgebases/{knowledge_base_name}/mcp?api-version=2025-11-01-preview"
project_endpoint = "{project_endpoint}" # e.g. https://your-foundry-resource.services.ai.azure.com/api/projects/your-foundry-project
project_connection_name = "{project_connection_name}"
agent_name = "{agent_name}"
agent_model = "{deployed_LLM}" # e.g. gpt-4.1-mini

# Create project client
project_client = AIProjectClient(endpoint = project_endpoint, credential = credential)

# Define agent instructions (see "Optimize agent instructions" section for guidance)
instructions = """
You are a helpful assistant that must use the knowledge base to answer all the questions from user. You must never answer from your own knowledge under any circumstances.
Every answer must always provide annotations for using the MCP knowledge base tool and render them as: `【message_idx:search_idx†source_name】`
If you cannot find the answer in the provided knowledge base you must respond with "I don't know".
"""

# Create MCP tool with knowledge base connection
mcp_kb_tool = MCPTool(
    server_label = "knowledge-base",
    server_url = mcp_endpoint,
    require_approval = "never",
    allowed_tools = ["knowledge_base_retrieve"],
    project_connection_id = project_connection_name
)

# Create agent with MCP tool
agent = project_client.agents.create_version(
    agent_name = agent_name,
    definition = PromptAgentDefinition(
        model = agent_model,
        instructions = instructions,
        tools = [mcp_kb_tool]
    )
)

print(f"Agent '{agent_name}' created or updated successfully.")

Connect to a remote SharePoint knowledge source

In this preview, Foundry Agent Service doesn’t support per-request headers for MCP tools. Headers set in agent definitions apply to all invocations and can’t vary by user or request.For per-user authorization, use the Azure OpenAI Responses API instead.
Optionally, if your knowledge base includes a remote SharePoint knowledge source, you must also include the x-ms-query-source-authorization header in the MCP tool connection.
from azure.identity import get_bearer_token_provider

# Create MCP tool with SharePoint authorization header
mcp_kb_tool = MCPTool(
    server_label = "knowledge-base",
    server_url = mcp_endpoint,
    require_approval = "never",
    allowed_tools = ["knowledge_base_retrieve"],
    project_connection_id = project_connection_name,
    headers = {
        "x-ms-query-source-authorization": get_bearer_token_provider(credential, "https://search.azure.com/.default")()
    }
)

Invoke the agent with a query

Create a conversation session and send a user query to the agent. When appropriate, the agent orchestrates calls to the MCP tool to retrieve relevant content from the knowledge base. The agent then synthesizes this content into a natural-language response that cites the source documents.
# Get the OpenAI client for responses and conversations
openai_client = project_client.get_openai_client()

# Create conversation
conversation = openai_client.conversations.create()

# Send request to trigger the MCP tool
response = openai_client.responses.create(
    conversation = conversation.id,
    input = """
        Why do suburban belts display larger December brightening than urban cores even though absolute light levels are higher downtown?
        Why is the Phoenix nighttime street grid is so sharply visible from space, whereas large stretches of the interstate between midwestern cities remain comparatively dim?
    """,
    extra_body = {"agent": {"name": agent.name, "type": "agent_reference"}},
)

print(f"Response: {response.output_text}")
The output should be similar to the following (truncated for brevity):
Response: Suburban belts display larger December brightening than urban cores, even 
though absolute light levels are higher downtown, primarily because holiday lights 
increase most dramatically in the suburbs and outskirts of major cities. This is due 
to more yard space and a prevalence of single-family homes in suburban areas...

The Phoenix nighttime street grid is sharply visible from space due to the city's 
layout along a regular grid of city blocks and streets with extensive street lighting...

References:
- earth_at_night_508_page_174, earth_at_night_508_page_176 (Holiday lighting)
- earth_at_night_508_page_104, earth_at_night_508_page_105 (Phoenix grid visibility)

Delete the agent and project connection

    # Delete the agent
    project_client.agents.delete_version(agent.name, agent.version)
    print(f"Agent '{agent.name}' version '{agent.version}' deleted successfully.")

    # Delete the project connection (Azure Resource Manager)
    import requests
    from azure.identity import DefaultAzureCredential, get_bearer_token_provider

    credential = DefaultAzureCredential()
    project_resource_id = "{project_resource_id}"
    project_connection_name = "{project_connection_name}"

    bearer_token_provider = get_bearer_token_provider(credential, "https://management.azure.com/.default")
    headers = {"Authorization": f"Bearer {bearer_token_provider()}"}

    response = requests.delete(
      f"https://management.azure.com{project_resource_id}/connections/{project_connection_name}?api-version=2025-10-01-preview",
      headers=headers,
    )
    response.raise_for_status()
    print(f"Project connection '{project_connection_name}' deleted successfully.")
Deleting your agent and project connection doesn’t delete your knowledge base or its knowledge sources. You must delete these objects separately on your Azure AI Search service. For more information, see Delete a knowledge base and Delete a knowledge source.

Troubleshooting

This section helps you troubleshoot common issues when connecting Foundry Agent Service to a Foundry IQ knowledge base.

Authorization failures (401/403)

  • If you get a 403 from Azure AI Search, confirm the project’s managed identity has the Search Index Data Reader role on the search service (and Search Index Data Contributor if you write to indexes).
  • If you get a 403 from Azure Resource Manager when you create or delete the project connection, confirm your user or service principal has permissions on the Microsoft Foundry resource and project.
  • If you use keyless authentication, confirm your environment is signed in to the correct tenant and subscription.

MCP endpoint errors (400/404)

  • Confirm search_service_endpoint is the Azure AI Search service URL, such as https://<name>.search.windows.net.
  • Confirm knowledge_base_name matches the knowledge base you created in Azure AI Search.
  • Confirm you use the 2025-11-01-preview API version for the knowledge base MCP endpoint.

The agent doesn’t ground answers

  • Confirm the agent has the MCP tool configured and allowed_tools includes knowledge_base_retrieve.
  • Update your agent instructions to explicitly require using the knowledge base and to return “I don’t know” when retrieval doesn’t contain the answer.