Agent mode tools in VS Code

The video explains how Agent mode in Visual Studio Code enhances coding workflows by allowing Copilot to utilize built-in tools, extensions, and external MCP servers for tasks like code searches and web fetches. It demonstrates how these tools can be configured, invoked, and integrated seamlessly within the environment to provide richer, context-aware AI assistance and improve productivity.

The video introduces Agent mode in Visual Studio Code, highlighting its capabilities to enhance coding workflows by allowing Copilot to make edits and invoke various tools to assist with tasks. In Agent mode, users can see and select available tools by switching to chat mode and clicking the tools icon. These tools can be built-in, such as codebase references or web fetches, and are referenced using hashtags in prompts, enabling Copilot to perform actions like searching code or fetching web data automatically.

The presenter explains how tools can originate from built-in options, extensions, or MCP (Model Context Protocol) servers. Extensions, like the Prompt Boost extension, can provide additional tools that improve prompt quality by adding relevant context, best practices, or specific requirements. These extension-provided tools can be invoked manually or automatically within Agent mode, allowing users to enhance prompts dynamically and get more accurate responses from Copilot.

A significant focus is on MCP support, which allows Agent mode to connect to external MCP servers that provide specialized tools and context. Configuration of these servers is managed via an MCP.json file, where users can add new servers, input sensitive data securely, and control server operation. Once configured, tools from MCP servers—such as Perplexity’s research and reasoning tools—can be invoked directly within the coding environment, enabling richer, context-aware assistance without leaving VS Code.

The video demonstrates how invoking MCP tools works in practice, showing a prompt requesting research on top MCP servers for front-end development. When the user prompts for this information, Agent mode automatically calls the relevant Perplexity tools, retrieves the data, and integrates the results into the code. The presenter also shares a tip for automating tool confirmation, allowing trusted tools to run without prompting repeatedly, streamlining the workflow further.

In conclusion, the video emphasizes the power and flexibility of Agent mode in VS Code, showcasing how it combines built-in tools, extensions, and MCP servers to provide a highly capable, integrated AI-assisted coding experience. The presenter encourages viewers to explore these features, share their experiences, and suggest future topics, underscoring the potential for Agent mode to significantly improve productivity and code quality.