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Microsoft Developer Community Blog
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Microsoft Foundry for VS Code: January 2026 Update

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leoyao
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Jan 20, 2026

Enhanced Workflow and Agent Experience

The January 2026 update for Microsoft Foundry extension in VS Code brings a follow update to the capabilities we introduced during Ignite of last year. We’re excited to announce a set of powerful updates that make building and managing AI workflows in Azure AI Foundry even more seamless. These enhancements are designed to give developers greater flexibility, visibility, and control when working with multi-agent systems and workflows.

Support for Multiple Workflows in the Visualizer

Managing complex AI solutions often involves multiple workflows. With this update, the Workflow Visualizer now supports viewing and navigating multiple workflows in a single project. This makes it easier to design, debug, and optimize interconnected workflows without switching contexts. 

View and Test Prompt Agents in the Playground

Prompt agents are a critical part of orchestrating intelligent behaviors. You can now view all prompt agents directly in the Playground and test them interactively. This feature helps you validate agent logic and iterate quickly, ensuring your prompts deliver the desired outcomes. 

Open Code files

Transparency and customization are key for developers. We’ve introduced the ability to open sample code files for all agents, including:

  • Prompt agents
  • YAML-based workflows
  • Hosted agents
  • Foundry classic agents

This gives you the ability to programmatically run agents, enabling adding these agents into your existing project.

Separated Resource View for v1 and v2 Agents

To reduce confusion and improve clarity, we’ve introduced a separated resource view for Foundry Classic resources and agents. This makes it simple to distinguish between legacy and new-generation agents, ensuring you always know which resources you’re working with.

How to Get Started

Feedback & Support

These improvements are part of our ongoing commitment to deliver a developer-first experience in Microsoft Foundry. Whether you’re orchestrating multi-agent workflows or fine-tuning prompt logic, these features help you build smarter, faster, and with greater confidence.

Try out the extensions and let us know what you think! File issues or feedback on our GitHub repo for Foundry extension. Your input helps us make continuous improvements.

Published Jan 20, 2026
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