Connect Cursor to Jira Free Plan Using MCP (Automatic Ticket Execution & Status Updates)

If you are using Cursor and Jira Free (Cloud) and want your AI assistant to read issues, execute tasks, update statuses, and comment automatically, this guide explains exactly how to do it using the Model Context Protocol (MCP).

Jira Free plan fully supports this setup.

Table of Contents

Architecture Overview

Cursor → MCP Jira Server → Jira Cloud REST API
  • Cursor communicates only with the MCP server
  • The MCP server communicates with Jira using REST APIs
  • No Jira plugins or paid plan required

Step 1: Create Jira API Credentials

  1. Go to Atlassian API Tokens
  2. Click Create API token
  3. Name it (for example: cursor-mcp)
  4. Copy the token and store it securely

You will need:

  • Jira email address
  • Jira API token
  • Jira base URL (example: https://yourcompany.atlassian.net)

Step 2: Install the Jira MCP Server

Install the Atlassian-compatible MCP server:

npm install -g @atlassian/mcp-jira

Verify installation:

mcp-jira --help

Step 3: Configure Jira MCP Server

Create the configuration file:

~/.mcp/jira.json

{
  "jira": {
    "baseUrl": "https://yourcompany.atlassian.net",
    "email": "you@example.com",
    "apiToken": "YOUR_API_TOKEN"
  }
}

Do not commit this file to version control. It contains sensitive credentials.

Step 4: Configure Cursor to Use MCP

Edit Cursor MCP configuration:

~/.cursor/mcp.json

{
  "servers": {
    "jira": {
      "command": "mcp-jira",
      "args": ["--config", "~/.mcp/jira.json"]
    }
  }
}

Restart Cursor after saving the file.

Step 5: Test in Cursor

Open Cursor Chat and try the following commands:

List all Jira issues assigned to me

Move ticket DEV-123 to In Progress

Add a comment to DEV-123 saying "Implementation completed"

If configured correctly, Cursor will execute these actions directly in Jira.

Common Automation Examples

Automatic Status Update

When I finish coding, move DEV-42 to Done and add a summary comment

Full Ticket Execution

Read DEV-101, summarize requirements, implement the solution, then move it to In Review

Daily Standup Assistant

List all Jira tickets currently in progress and summarize blockers

Jira Free Plan Limitations

  • API rate limits apply
  • Maximum of 10 users per workspace
  • No advanced Jira automation rules

MCP access itself is not restricted by the Free plan.

Troubleshooting

  • 401 Unauthorized: verify email and API token
  • Issue not found: check project key and issue ID
  • Status transition fails: ensure the workflow allows the transition

Final Thoughts

By combining Cursor, MCP, and Jira Free, you can build a powerful AI-driven Jira automation system without paying for plugins or higher Jira plans.

This setup is ideal for developers who want:

  • Automatic ticket updates
  • AI-assisted task execution
  • Reduced manual Jira work

Possible next steps:

  • Connect GitHub or GitLab MCP servers
  • Auto-update tickets based on CI results
  • Generate release notes directly from Jira issues
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