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|**Key-based**<sup>*</sup> | Agent authenticates by passing a shared [function access key](./function-keys-how-to.md) in the request header. | During development or when the MCP server doesn't require Microsoft Entra authentication. | None | Yes |
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|**Microsoft Entra**| Agent authenticates using either its own identity (*agent identity*) or the shared identity of the Foundry project (*project managed identity*). | Production-level security where users or agents share the same identity and permissions. |[Disable key-based authentication](functions-mcp-tutorial.md?tabs=mcp-extension#disable-key-based-authentication) and [configure built-in server authorization and authentication](functions-mcp-tutorial.md?tabs=mcp-extension#enable-built-in-server-authorization-and-authentication). | Project managed identity |
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|**Microsoft Entra**| Agent authenticates using either its own identity (*agent identity*) or the shared identity of the Foundry project (*project managed identity*). | Production-level security where users or agents share the same identity and permissions. |[Disable key-based authentication](functions-mcp-tutorial.md?tabs=mcp-extension#disable-key-based-authentication) and [configure built-in server authorization and authentication](functions-mcp-tutorial.md?tabs=mcp-extension#enable-built-in-server-authorization-and-authentication). | Project managed (shared) identity |
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|**OAuth identity passthrough**| Agent prompts users to sign in and authorize access, using the provided token to authenticate. | Production when each user must authenticate with their own identity and user context must be persisted. | Not yet determined | No |
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|**Unauthenticated access**| Agent makes unauthenticated calls. | During development or when your MCP server accesses only public information. |[Disable key-based authentication](functions-mcp-tutorial.md?tabs=mcp-extension#disable-key-based-authentication). | Yes |
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