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How to use Datadog with Cursor

You want Datadog inside Cursor so it can investigate production errors, compare incident volume over time, trace a slow request, and find useful observability dimensions — without you copy-pasting between tabs. Here is the whole setup, once.

Create your Datadog gateway

The gateway is the thing Cursor connects to, and it is where you decide which Datadog tools an agent may use. You create it once and every client reuses it.

  1. Create an Arcade account

    Sign up and open the dashboard. The free tier is enough to follow this through.

  2. Create an MCP Gateway and select your Datadog tools

    In the dashboard, create a gateway and pick the Datadog tools you want to expose. The gateway is what your client connects to, and it is where tool access is decided.

  3. Copy your gateway URL

    Every client below needs it.

    https://api.arcade.dev/mcp/<YOUR-GATEWAY-SLUG>

Create a Datadog gateway Opens the gateway builder in your Arcade dashboard.

Connect the gateway to Cursor

Heads up

Cursor does not refresh MCP OAuth tokens automatically. For a persistent connection, set Authorization to “Arcade Headers” on the gateway in the dashboard.

  1. Open MCP settings

    Command Palette (⌘⇧P / Ctrl+Shift+P) → Open MCP Settings, then click “New MCP Server”.

  2. Add the gateway to mcpServers

    {
      "mcpServers": {
        "mcp-arcade": {
          "url": "https://api.arcade.dev/mcp/<YOUR-GATEWAY-SLUG>"
        }
      }
    }

  3. Try it out

    Ask Cursor to use one of your Datadog tools.

Full Cursor guide in the docs steps verified 2026-08-13

Get started with Datadog prompts

Cursor can now act on your Datadog account. Click a prompt to copy it.

Keep the shared API key or secret in Arcade and allow only the read-only searches your agent needs. Pair it with Contextual Access policies to control access before an agent can inspect logs, spans, or traces.

Ready to actually ship your agent?

Free to start. Ready for enterprise when you are.