How to use Jira with VS Code
You want Jira inside VS Code so it can triage issues needing attention, prepare the next sprint, keep issue status current, and turn a request into tracked work — without you copy-pasting between tabs. Here is the whole setup, once.
Create your Jira gateway
The gateway is the thing VS Code connects to, and it is where you decide which Jira tools an agent may use. You create it once and every client reuses it.
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Create an Arcade account
Sign up and open the dashboard. The free tier is enough to follow this through.
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Create an MCP Gateway and select your Jira tools
In the dashboard, create a gateway and pick the Jira tools you want to expose. The gateway is what your client connects to, and it is where tool access is decided.
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Copy your gateway URL
Every client below needs it.
Connect the gateway to VS Code
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Add the server
VS Code 1.107.0 or higher. Command Palette → MCP: Add Server… → choose HTTP, paste your gateway URL, and name it something like mcp-arcade.
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Start it and sign in to Arcade
Click Start next to the server in mcp.json or under Extensions → MCP Servers - Installed, then approve the Arcade sign-in and consent screens.
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Try it out
Open the chat pane, switch to Agent mode, and ask it to use one of your Jira tools. The first time it calls a Jira tool, Arcade replies with an authorization link. Open it, sign in to Jira and approve access, then ask again. You do this once per account.
Try these Jira prompts
VS Code can now act on your Jira account. Copy a prompt and paste it in.
triage issues needing attention
Find open Jira issues in my projects that have not been updated in the last 14 days or are blocked. Group them by project and priority, summarize the latest comment, and return the issue keys with a recommended next action. Do not change anything.
prepare the next sprint
Review the backlog and the current sprint for my team. Identify high-priority unassigned issues, check their issue types and available transitions, and recommend a sprint-ready set with reasons. Do not move issues or change their status.
keep issue status current
Find the Jira issues assigned to me that are still marked In Progress but have a recent comment indicating the work is complete. List the issue key, summary, latest comment, and suggested new status, then ask for confirmation before making any transitions.
turn a request into tracked work
Create a Jira issue in the appropriate project from this request: [paste request]. Choose the best available issue type and priority, write a concise summary and description, and return the issue key and URL. Ask before creating it if the project or issue type is ambiguous.
Control write access so an agent can read issues without being able to update tickets, move sprint work, or add comments. Pair it with Contextual Access policies to require approval for changes that affect project status.