Quickstart: Use SQL MCP Server with Visual Studio Code locally

This quickstart uses the Data API builder CLI to run a SQL Model Context Protocol (MCP) Server locally without Aspire. You create a database, configure a config file, start SQL MCP Server, and connect to it from Visual Studio Code (VS Code) using a custom tool. This path is the easiest way to explore SQL MCP Server without containers or hosting frameworks.

Prerequisites

Install these tools before you start.

.NET 9+

You may already have this tool installed. Run dotnet --version and confirm it reports version 9.0 or later. If .NET is already present, reinstalling is safe and only refreshes your runtime.

SQL Server 2016+

You need access to a SQL Server database. Any of the following work:

• SQL Server (Developer or Express)
• LocalDB (file-based SQL Server)
• SQL Server in Docker

Install the Data API builder CLI

dotnet new tool-manifest
dotnet tool install microsoft.dataapibuilder
dotnet tool restore

Step 1: Create your sample database

In this step, you create a database named ProductsDb and seed it with a single table named Products.

Connect to your SQL instance using SQLCMD, SQL Server Management Studio, or any preferred tool, then run:

CREATE DATABASE ProductsDb;
GO

USE ProductsDb;
GO

CREATE TABLE dbo.Products (
    Id INT PRIMARY KEY,
    Name NVARCHAR(100) NOT NULL,
    Inventory INT NOT NULL,
    Price DECIMAL(10,2) NOT NULL,
    Cost DECIMAL(10,2) NOT NULL
);

INSERT INTO dbo.Products (Id, Name, Inventory, Price, Cost)
VALUES
    (1, 'Action Figure', 40, 14.99, 5.00),
    (2, 'Building Blocks', 25, 29.99, 10.00),
    (3, 'Puzzle 500 pcs', 30, 12.49, 4.00),
    (4, 'Toy Car', 50, 7.99, 2.50),
    (5, 'Board Game', 20, 34.99, 12.50),
    (6, 'Doll House', 10, 79.99, 30.00),
    (7, 'Stuffed Bear', 45, 15.99, 6.00),
    (8, 'Water Blaster', 35, 19.99, 7.00),
    (9, 'Art Kit', 28, 24.99, 8.00),
    (10,'RC Helicopter', 12, 59.99, 22.00);

Your sample database is ready.

Step 2: Configure SQL MCP Server

Run all commands in the folder where you want to create your dab-config.json file.

Create your environment file

Create a file named .env in your working directory and add the following line (customize with your SQL Server information):

MSSQL_CONNECTION_STRING=Server=localhost;Database=ProductsDb;Trusted_Connection=True;TrustServerCertificate=True

Data API builder can read variables from a local .env file when present in the working directory. If your environment doesn't support .env files, set MSSQL_CONNECTION_STRING as an environment variable in your terminal session before running the following commands.

Initialize and configure the server

Run the following commands:

dab init --database-type mssql --connection-string "@env('MSSQL_CONNECTION_STRING')" --host-mode Development --config dab-config.json

dab add Products --source dbo.Products --permissions "anonymous:read" --description "Toy store products with inventory, price, and cost."

Optionally add field descriptions

dab update Products --fields.name Id --fields.primary-key true --fields.description "Product Id"
dab update Products --fields.name Name --fields.description "Product name"
dab update Products --fields.name Inventory --fields.description "Units in stock"
dab update Products --fields.name Price --fields.description "Retail price"
dab update Products --fields.name Cost --fields.description "Store cost"

Your SQL MCP Server is fully configured.

Step 3: Start SQL MCP Server

SQL MCP Server supports two transport modes. Choose the one that fits your workflow.

Option A: HTTP transport (server runs separately)

In HTTP mode, you start DAB as a long-running process in a terminal and VS Code connects to it over a local HTTP endpoint.

Before connecting from VS Code, start the SQL MCP Server in a separate terminal.

Open a terminal and run

dab start --config dab-config.json

This command starts the SQL MCP Server. After startup, the terminal output shows the listening URLs. This quickstart assumes the MCP endpoint is http://localhost:5000/mcp. Keep this terminal running - Visual Studio Code connects to this HTTP endpoint.

Option B: stdio transport (VS Code manages the process)

In stdio mode, DAB launches as a child process managed directly by VS Code. You do not need to run dab start in a terminal—VS Code starts and stops DAB automatically when you open the workspace.

This mode is recommended for local development. There's no HTTP port to manage and no terminal process to keep running.

Skip to Step 4 to configure the VS Code MCP server definition for your chosen transport.

Step 4: Connect from VS Code

Open your project folder

1. Select File > Open Folder.
2. Open the folder that contains your dab-config.json file.

Create your MCP server definition

Create a file named .vscode/mcp.json and add the content for your chosen transport.

{
  "servers": {
    "sql-mcp-server": {
      "type": "stdio",
      "command": "dab",
      "args": [
        "start",
        "--mcp-stdio",
        "role:anonymous",
        "--loglevel",
        "none",
        "--config",
        "${workspaceFolder}/dab-config.json"
      ]
    }
  }
}

{
  "servers": {
    "sql-mcp-server": {
      "type": "http",
      "url": "http://localhost:5000/mcp"
    }
  }
}

Which products have an inventory under 30?