Azure MCP Server 3.0 was released on October 12, 2026.

It exposes hundreds of individual tools and commands grouped into service-specific namespaces. Now it offers more toolsets for everyday Azure operations, along with a few useful features listed below.

Azure Backup 

This allows you to inspect vaults, policies, protectable items and containers, protected items, jobs, and recovery points. 

It also gives you the ability to manage protection and governance, including soft delete, immutability, and Resource Guards for Multi-User Authorization. 

Some of the Tools also cover customer-managed key encryption and cross-region restore. 

Azure Resilience Management

Provides usage plans and enrollments, recovery plans and jobs, readiness checks, failover validation, and drill lifecycles. 

In addition, failover and reprotect actions extend recovery workflows.

You can also plan and review those operations before invoking them.

Azure SRE Agent

SRE (Site Reliability Engineering) Agent is an autonomous AI-powered service from Microsoft designed to assist site reliability engineers and developers with cloud operations, incident response, and root-cause analysis (RCA).

It provides a 55-command toolset that covers agents, skills, threads, scheduled tasks, and workflows.

Terraform for Azure

Provides documentation lookup, Azure Verified Modules (AVM) discovery, resource export, and policy validation via conftest.

Flags

Use "azmcp --learn" flag to explore commands and parameters without executing Azure operations.

Use "azmcp --structured-output-mode duplicated" or "azmcp --structured-output-mode compact" to let tools advertise outputSchema and return structuredContent across execution modes.

To learn more about MCP and usage, visit https://learn.microsoft.com/en-us/azure/developer/azure-mcp-server/tools/

To learn more about the new features in release 3.0, visit https://devblogs.microsoft.com/azure-sdk/azure-mcp-server-3-0-stable-release/