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Connect Microsoft Copilot Studio to Nylon

Microsoft 365 Copilot can’t take an MCP URL directly. One person (the maker) builds a Copilot Studio agent with Nylon as a tool, then shares it. Each colleague signs in with their own Nylon account the first time they use it.

  • A Nylon Adviser or Elite seat for everyone who will use the agent.
  • Access to Microsoft Copilot Studio, and permission to add tools to an agent and publish it.
  • Generative orchestration turned on for the agent. Copilot Studio needs it for MCP.
  • Your organisation’s Power Platform data policies must allow the connector.
  1. In Copilot Studio, open your agent (or create one) and go to Tools.

  2. Choose Add a tool → New tool → Model Context Protocol.

  3. Fill in the server details:

    Field Value
    Server name Nylon
    Server description Searches and reads Nylon's library of New Zealand and Australian tax and law, and UK tax, with links to the source.
    Server URL https://mcp.usenylon.com/mcp

    The agent uses the description to decide when to call Nylon, so keep it specific.

  4. For authentication, choose OAuth 2.0, then type Dynamic discovery. You don’t need a client ID or secret.

  5. Choose Create, then Next.

  6. Choose Create a new connection. Copilot Studio opens Nylon’s sign-in page. Sign in and choose Allow access.

  7. Choose Add to agent.

  8. In the Nylon tool’s settings, make sure it uses End user credentials, not maker-provided credentials.

Publish the agent and make it available in Microsoft 365 Copilot and Teams, as you would any Copilot Studio agent. The first time a colleague uses Nylon through the agent, they sign in with their own Nylon account. Each person’s access follows their own Nylon seat.

Using Nylon, when must a business register for GST in New Zealand? Cite the sections of the Goods and Services Tax Act 1985.
Problem Fix
The tool is created but never called Check generative orchestration is on, make the agent’s instructions say to use Nylon for tax and law questions, and start the prompt with “Using Nylon”.
“Upgrade to Adviser” on the consent screen That person’s seat is Starter. Ask your Nylon admin for an Adviser or Elite seat, then connect again.
“AI tool connections are turned off for your account” Ask your Nylon admin to turn on Allow AI tool connections in Organisation Settings → Connections.
A data policy blocks the connector Your Power Platform admin controls which connectors agents can use.

Copilot Studio supports the Streamable HTTP transport, which Nylon uses. No other transport setting is needed.