How to use Microsoft OneDrive with VS Code
You want Microsoft OneDrive inside VS Code so it can find and clean up duplicate files, organize a folder after a file import, audit shared OneDrive content, and prepare and share a project folder — without you copy-pasting between tabs. Here is the whole setup, once.
Create your Microsoft OneDrive gateway
The gateway is the thing VS Code connects to, and it is where you decide which Microsoft OneDrive 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 Microsoft OneDrive tools
In the dashboard, create a gateway and pick the Microsoft OneDrive 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.
https://api.arcade.dev/mcp/<YOUR-GATEWAY-SLUG>
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 authenticate
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 Microsoft OneDrive tools.
Full VS Code guide in the docs steps verified 2026-08-13
Try these OneDrive prompts
VS Code can now act on your Microsoft OneDrive account. Click a prompt to copy it.
Use permissions to control whether an agent can create share links, move files, or delete them. Pair it with Contextual Access policies so an agent can find and read files without being allowed to share or delete them.