Configuration option terraform.mcp.server.enable to enable or disable HashiCorp Terraform MCP Server integration

.changes/unreleased/ENHANCEMENTS-20250909-163330.yaml

@@ -0,0 +1,6 @@
+kind: ENHANCEMENTS
+body: Configuration option `terraform.mcp.server.enabled` to enable or disable HashiCorp Terraform MCP Server integration
+time: 2025-09-09T16:33:30.998854+05:30
+custom:
+    Issue: "2106"
+    Repository: vscode-terraform

package.json

@@ -499,6 +499,13 @@
             "scope": "machine",
             "type": "string",
             "markdownDescription": "Path to a file (`TF_LOG_PATH`) for Terraform executions to be logged used by the the Terraform Language Server. Support for variables (e.g. timestamp, pid, ppid) via Go template syntax `{{varName}}`"
+          },
+          "terraform.mcp.server.enabled": {
+            "order": 3,
+            "scope": "window",
+            "type": "boolean",
+            "default": true,
+            "description": "Enable HashiCorp Terraform MCP Server integration"
           }
         }
       },
@@ -534,6 +541,14 @@
         "command": "terraform.disableLanguageServer",
         "title": "HashiCorp Terraform: Disable Language Server"
       },
+      {
+        "command": "terraform.enableMcpServer",
+        "title": "HashiCorp Terraform: Enable MCP Server"
+      },
+      {
+        "command": "terraform.disableMcpServer",
+        "title": "HashiCorp Terraform: Disable MCP Server"
+      },
       {
         "command": "terraform.init",
         "title": "HashiCorp Terraform: init"
@@ -646,6 +661,14 @@
           "command": "terraform.disableLanguageServer",
           "when": "config.terraform.languageServer.enable == true"
         },
+        {
+          "command": "terraform.enableMcpServer",
+          "when": "config.terraform.mcp.server.enabled == false"
+        },
+        {
+          "command": "terraform.disableMcpServer",
+          "when": "config.terraform.mcp.server.enabled == true"
+        },
         {
           "command": "terraform.init",
           "when": "config.terraform.languageServer.enable == true"

src/commands/mcpServer.ts

@@ -0,0 +1,34 @@
+/**
+ * Copyright (c) HashiCorp, Inc.
+ * SPDX-License-Identifier: MPL-2.0
+ */
+
+import * as vscode from 'vscode';
+import { config, getScope } from '../utils/vscode';
+
+export class McpServerCommands implements vscode.Disposable {
+  constructor(private context: vscode.ExtensionContext) {
+    this.context.subscriptions.push(
+      vscode.commands.registerCommand('terraform.enableMcpServer', async () => {
+        if (config('terraform').get('mcp.server.enabled') === true) {
+          return;
+        }
+
+        const scope: vscode.ConfigurationTarget = getScope('terraform', 'mcp.server.enabled');
+        await config('terraform').update('mcp.server.enabled', true, scope);
+      }),
+      vscode.commands.registerCommand('terraform.disableMcpServer', async () => {
+        if (config('terraform').get('mcp.server.enabled') === false) {
+          return;
+        }
+
+        const scope: vscode.ConfigurationTarget = getScope('terraform', 'mcp.server.enabled');
+        await config('terraform').update('mcp.server.enabled', false, scope);
+      }),
+    );
+  }
+
+  dispose(): void {
+    // context.subscriptions will be disposed by the extension, so any explicit code should not be required.
+  }
+}

src/commands/terraformls.ts

@@ -11,7 +11,7 @@ export class TerraformLSCommands implements vscode.Disposable {
     this.context.subscriptions.push(
       vscode.workspace.onDidChangeConfiguration(async (event: vscode.ConfigurationChangeEvent) => {
         if (event.affectsConfiguration('terraform') || event.affectsConfiguration('terraform-ls')) {
-          const reloadMsg = 'Reload VSCode window to apply language server changes';
+          const reloadMsg = 'Reload VSCode window to apply configuration changes';
           const selected = await vscode.window.showInformationMessage(reloadMsg, 'Reload');
           if (selected === 'Reload') {
             vscode.commands.executeCommand('workbench.action.reloadWindow');

src/extension.ts

@@ -33,6 +33,7 @@ import { LanguageStatusFeature } from './features/languageStatus';
 import { getInitializationOptions } from './settings';
 import { TerraformLSCommands } from './commands/terraformls';
 import { TerraformCommands } from './commands/terraform';
+import { McpServerCommands } from './commands/mcpServer';
 import * as lsStatus from './status/language';
 import { TerraformCloudFeature } from './features/terraformCloud';
 import { setupMockServer, stopMockServer } from './test/e2e/specs/mocks/server';
@@ -71,7 +72,8 @@ export async function activate(context: vscode.ExtensionContext): Promise<void>
 
   context.subscriptions.push(new TerraformCloudFeature(context, reporter, tfcOutputChannel));
 
-  // Register MCP server feature
+  // Register MCP server commands and feature
+  context.subscriptions.push(new McpServerCommands(context));
   context.subscriptions.push(new McpServerFeature(context, reporter, outputChannel));
 
   if (config('terraform').get<boolean>('languageServer.enable') === false) {

src/features/mcpServer.ts

@@ -7,6 +7,7 @@ import TelemetryReporter from '@vscode/extension-telemetry';
 import { exec } from 'child_process';
 import { promisify } from 'util';
 import * as vscode from 'vscode';
+import { config } from '../utils/vscode';
 
 const execAsync = promisify(exec);
 
@@ -55,7 +56,19 @@ export class McpServerFeature {
   private isMcpApiAvailable(): boolean {
     // Check if VS Code has the MCP API available
     // eslint-disable-next-line @typescript-eslint/no-explicit-any
-    return typeof (vscode as any).lm?.registerMcpServerDefinitionProvider === 'function';
+    const available = typeof (vscode as any).lm?.registerMcpServerDefinitionProvider === 'function';
+    if (!available) {
+      this.outputChannel.appendLine(`Terraform MCP API is not available in current VS Code version ${vscode.version}`);
+    }
+    return available;
+  }
+
+  private isMcpServerEnabled(): boolean {
+    const isEnabled = config('terraform').get<boolean>('mcp.server.enabled') === true;
+    if (!isEnabled) {
+      this.outputChannel.appendLine('HashiCorp Terraform MCP Server integration is disabled by configuration');
+    }
+    return isEnabled;
   }
 
   private registerMcpServerProvider(): vscode.Disposable | undefined {
@@ -81,6 +94,10 @@ export class McpServerFeature {
   // Just provide the available MCP server definitions
   private provideMcpServerDefinitions(): McpServerDefinition[] {
     try {
+      if (!this.isMcpServerEnabled()) {
+        return [];
+      }
+
       const server: McpServerDefinition = {
         label: 'HashiCorp Terraform MCP Server',
         command: 'docker',