Atlassian MCP waiting for server initialization

[Dorin_Goldin]

Hi,

When trying to configure Atlassian mcp on vs code im getting this response:

2025-08-24 10:33:43.306 [info] Starting server atlassian
2025-08-24 10:33:43.307 [info] Connection state: Starting
2025-08-24 10:33:43.317 [info] Starting server from LocalProcess extension host
2025-08-24 10:33:43.319 [info] Connection state: Running
2025-08-24 10:33:44.200 [info] 404 status sending message to https://mcp.atlassian.com/v1/sse, will attempt to fall back to legacy SSE
2025-08-24 10:33:48.323 [info] Waiting for server to respond to `initialize` request...
2025-08-24 10:33:53.323 [info] Waiting for server to respond to `initialize` request...
2025-08-24 10:33:58.325 [info] Waiting for server to respond to `initialize` request...
2025-08-24 10:34:03.324 [info] Waiting for server to respond to `initialize` request...

does anyone know what can be the problem?

[Ivan Đorđević]

We're having similar issue. Connection closes after a timeout. 

[info] Starting server atlassian-mcp-server
[info] Connection state: Starting
[info] Starting server from LocalProcess extension host
[info] Connection state: Running
[info] 404 status sending message to https://mcp.atlassian.com/v1/sse, will attempt to fall back to legacy SSE
[info] Discovered 24 tools
[info] Connection state: Error Error reading SSE stream: TypeError: terminated

[Jaakko Pakarinen]

I have this exact same issue, connection closes after 5 minutes.

[Dr Valeri Colon _Connect Centric_]

@Dorin_Goldin @Don Ayers @Jaakko Pakarinen @Cristina Maria Rodrigues Garcia Araújo @Ivan Đorđević  This isn’t a VS Code issue—the Atlassian Remote MCP server is still in limited preview and only supports the legacy SSE protocol, which frequently returns 404 or never completes the initialize handshake. Non-approved clients hit timeouts after a few minutes. There’s no fix yet; Atlassian hasn’t opened stable MCP access or the new protocol to external tools.

[Don Ayers]

Just bumping this because it basically makes this MCP a huge pain to work with. You have to restart the server if it sits for more than 5 minutes.... which is ridiculous.

[Cristina Maria Rodrigues Garcia Araújo]

I have the same problem.

Isn't a problem with the Atlassian remote MCP server, that is using the old protocol legacy SSE? It seams that the remote MCP is not accepting connections (or is blocked for preview).