diff --git a/python/samples/demos/m365-agent/.env.example b/python/samples/demos/m365-agent/.env.example
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+# OpenAI Configuration
+OPENAI_API_KEY=
+OPENAI_CHAT_MODEL_ID=
+
+# Agent 365 Agentic Authentication Configuration
+USE_ANONYMOUS_MODE=
+CONNECTIONS__SERVICE_CONNECTION__SETTINGS__CLIENTID=
+CONNECTIONS__SERVICE_CONNECTION__SETTINGS__CLIENTSECRET=
+CONNECTIONS__SERVICE_CONNECTION__SETTINGS__TENANTID=
+CONNECTIONS__SERVICE_CONNECTION__SETTINGS__SCOPES=
+
+AGENTAPPLICATION__USERAUTHORIZATION__HANDLERS__AGENTIC__SETTINGS__TYPE=AgenticUserAuthorization
+AGENTAPPLICATION__USERAUTHORIZATION__HANDLERS__AGENTIC__SETTINGS__SCOPES=https://graph.microsoft.com/.default
+AGENTAPPLICATION__USERAUTHORIZATION__HANDLERS__AGENTIC__SETTINGS__ALTERNATEBLUEPRINTCONNECTIONNAME=https://graph.microsoft.com/.default
+
+CONNECTIONSMAP_0_SERVICEURL=*
+CONNECTIONSMAP_0_CONNECTION=SERVICE_CONNECTION
diff --git a/python/samples/demos/m365-agent/README.md b/python/samples/demos/m365-agent/README.md
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+# Microsoft Agent Framework Python Weather Agent sample (M365 Agents SDK)
+
+This sample demonstrates a simple Weather Forecast Agent built with the Python Microsoft Agent Framework, exposed through the Microsoft 365 Agents SDK compatible endpoints. The agent accepts natural language requests for a weather forecast and responds with a textual answer. It supports multi-turn conversations to gather required information.
+
+## Prerequisites
+
+- Python 3.11+
+- [uv](https://github.com/astral-sh/uv) for fast dependency management
+- [devtunnel](https://learn.microsoft.com/azure/developer/dev-tunnels/get-started?tabs=windows)
+- [Microsoft 365 Agents Toolkit](https://github.com/OfficeDev/microsoft-365-agents-toolkit) for playground/testing
+- Access to OpenAI or Azure OpenAI with a model like `gpt-4o-mini`
+
+## Configuration
+
+Set the following environment variables:
+
+```bash
+# Common
+export PORT=3978
+export USE_ANONYMOUS_MODE=True # set to false if using auth
+
+# OpenAI
+export OPENAI_API_KEY="..."
+export OPENAI_CHAT_MODEL_ID="..."
+```
+
+## Installing Dependencies
+
+From the repository root or the sample folder:
+
+```bash
+uv sync
+```
+
+## Running the Agent Locally
+
+```bash
+# Activate environment first if not already
+source .venv/bin/activate   # (Windows PowerShell: .venv\Scripts\Activate.ps1)
+
+# Run the weather agent demo
+python m365_agent_demo/app.py
+```
+
+The agent starts on `http://localhost:3978`. Health check: `GET /api/health`.
+
+## QuickStart using Agents Playground
+
+1. Install (if not already):
+
+   ```bash
+   winget install agentsplayground
+   ```
+
+2. Start the Python agent locally: `python m365_agent_demo/app.py`
+3. Start the playground: `agentsplayground`
+4. Chat with the Weather Agent.
+
+## QuickStart using WebChat (Azure Bot)
+
+To test via WebChat you can provision an Azure Bot and point its messaging endpoint to your agent.
+
+1. Create an Azure Bot (choose Client Secret auth for local tunneling).
+2. Create a `.env` file in this sample folder with the following (replace placeholders):
+
+   ```bash
+   # Authentication / Agentic configuration
+   USE_ANONYMOUS_MODE=False
+   CONNECTIONS__SERVICE_CONNECTION__SETTINGS__CLIENTID="<client-id>"
+   CONNECTIONS__SERVICE_CONNECTION__SETTINGS__CLIENTSECRET="<client-secret>"
+   CONNECTIONS__SERVICE_CONNECTION__SETTINGS__TENANTID="<tenant-id>"
+   CONNECTIONS__SERVICE_CONNECTION__SETTINGS__SCOPES=https://graph.microsoft.com/.default
+
+   AGENTAPPLICATION__USERAUTHORIZATION__HANDLERS__AGENTIC__SETTINGS__TYPE=AgenticUserAuthorization
+   AGENTAPPLICATION__USERAUTHORIZATION__HANDLERS__AGENTIC__SETTINGS__SCOPES=https://graph.microsoft.com/.default
+   AGENTAPPLICATION__USERAUTHORIZATION__HANDLERS__AGENTIC__SETTINGS__ALTERNATEBLUEPRINTCONNECTIONNAME=https://graph.microsoft.com/.default
+   ```
+
+3. Host dev tunnel:
+
+   ```bash
+   devtunnel host -p 3978 --allow-anonymous
+   ```
+
+4. Set the bot Messaging endpoint to: `https://<tunnel-host>/api/messages`
+5. Run your local agent: `python m365_agent_demo/app.py`
+6. Use "Test in WebChat" in Azure Portal.
+
+> Federated Credentials or Managed Identity auth types typically require deployment to Azure App Service instead of tunneling.
+
+## Troubleshooting
+
+- 404 on `/api/messages`: Ensure you are POSTing and using the correct tunnel URL.
+- Empty responses: Check model key / quota and ensure environment variables are set.
+- Auth errors when anonymous disabled: Validate MSAL config matches your Azure Bot registration.
+
+## Further Reading
+
+- [Microsoft 365 Agents SDK](https://learn.microsoft.com/microsoft-365/agents-sdk/)
+- [Devtunnel docs](https://learn.microsoft.com/azure/developer/dev-tunnels/)
diff --git a/python/samples/demos/m365-agent/m365_agent_demo/app.py b/python/samples/demos/m365-agent/m365_agent_demo/app.py
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index 0000000000..7580e5ecce
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+++ b/python/samples/demos/m365-agent/m365_agent_demo/app.py
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+# Copyright (c) Microsoft. All rights reserved.
+# /// script
+# requires-python = ">=3.11"
+# dependencies = [
+#   "microsoft-agents-hosting-aiohttp",
+#   "microsoft-agents-hosting-core",
+#   "microsoft-agents-authentication-msal",
+#   "microsoft-agents-activity",
+#   "agent-framework-core",
+#   "aiohttp"
+# ]
+# ///
+
+import os
+from dataclasses import dataclass
+from random import randint
+from typing import Annotated
+
+from agent_framework import ChatAgent
+from agent_framework.openai import OpenAIChatClient
+from aiohttp import web
+from aiohttp.web_middlewares import middleware
+from microsoft_agents.activity import load_configuration_from_env
+from microsoft_agents.authentication.msal import MsalConnectionManager
+from microsoft_agents.hosting.aiohttp import CloudAdapter, start_agent_process
+from microsoft_agents.hosting.core import (
+    AgentApplication,
+    AuthenticationConstants,
+    Authorization,
+    ClaimsIdentity,
+    MemoryStorage,
+    TurnContext,
+    TurnState,
+)
+from pydantic import Field
+
+"""
+Demo application using Microsoft Agent 365 SDK.
+
+This sample demonstrates how to build an AI agent using the Agent Framework,
+integrating with Microsoft 365 authentication and hosting components.
+
+The agent provides a simple weather tool and can be run in either anonymous mode
+(no authentication required) or authenticated mode using MSAL and Azure AD.
+
+Key features:
+- Loads configuration from environment variables.
+- Demonstrates agent creation and tool registration.
+- Supports both anonymous and authenticated scenarios.
+- Uses aiohttp for web hosting.
+
+To run, set the appropriate environment variables (check .env.example file) for authentication or use
+anonymous mode for local testing.
+"""
+
+
+@dataclass
+class AppConfig:
+    use_anonymous_mode: bool
+    port: int
+    agents_sdk_config: dict
+
+
+def load_app_config() -> AppConfig:
+    """Load application configuration from environment variables.
+
+    Returns:
+        AppConfig: Consolidated configuration including anonymous mode flag, port, and SDK config.
+    """
+    agents_sdk_config = load_configuration_from_env(os.environ)
+    use_anonymous_mode = os.environ.get("USE_ANONYMOUS_MODE", "true").lower() == "true"
+    port_str = os.getenv("PORT", "3978")
+    try:
+        port = int(port_str)
+    except ValueError:
+        port = 3978
+    return AppConfig(use_anonymous_mode=use_anonymous_mode, port=port, agents_sdk_config=agents_sdk_config)
+
+
+def get_weather(
+    location: Annotated[str, Field(description="The location to get the weather for.")],
+) -> str:
+    """Generate a mock weather report for the provided location.
+
+    Args:
+        location: The geographic location name.
+    Returns:
+        str: Human-readable weather summary.
+    """
+    conditions = ["sunny", "cloudy", "rainy", "stormy"]
+    return f"The weather in {location} is {conditions[randint(0, 3)]} with a high of {randint(10, 30)}°C."
+
+
+def build_agent() -> ChatAgent:
+    """Create and return the chat agent instance with weather tool registered."""
+    return OpenAIChatClient().create_agent(
+        name="WeatherAgent", instructions="You are a helpful weather agent.", tools=get_weather
+    )
+
+
+def build_connection_manager(config: AppConfig) -> MsalConnectionManager | None:
+    """Build the connection manager unless running in anonymous mode.
+
+    Args:
+        config: Application configuration.
+    Returns:
+        MsalConnectionManager | None: Connection manager when authenticated mode is enabled.
+    """
+    if config.use_anonymous_mode:
+        return None
+    return MsalConnectionManager(**config.agents_sdk_config)
+
+
+def build_adapter(connection_manager: MsalConnectionManager | None) -> CloudAdapter:
+    """Instantiate the CloudAdapter with the optional connection manager."""
+    return CloudAdapter(connection_manager=connection_manager)
+
+
+def build_authorization(
+    storage: MemoryStorage, connection_manager: MsalConnectionManager | None, config: AppConfig
+) -> Authorization | None:
+    """Create Authorization component if not in anonymous mode.
+
+    Args:
+        storage: State storage backend.
+        connection_manager: Optional connection manager.
+        config: Application configuration.
+    Returns:
+        Authorization | None: Authorization component when enabled.
+    """
+    if config.use_anonymous_mode:
+        return None
+    return Authorization(storage, connection_manager, **config.agents_sdk_config)
+
+
+def build_agent_application(
+    storage: MemoryStorage,
+    adapter: CloudAdapter,
+    authorization: Authorization | None,
+    config: AppConfig,
+) -> AgentApplication[TurnState]:
+    """Compose and return the AgentApplication instance.
+
+    Args:
+        storage: Storage implementation.
+        adapter: CloudAdapter handling requests.
+        authorization: Optional authorization component.
+        config: App configuration.
+    Returns:
+        AgentApplication[TurnState]: Configured agent application.
+    """
+    return AgentApplication[TurnState](
+        storage=storage, adapter=adapter, authorization=authorization, **config.agents_sdk_config
+    )
+
+
+def build_anonymous_claims_middleware(use_anonymous_mode: bool):
+    """Return a middleware that injects anonymous claims when enabled.
+
+    Args:
+        use_anonymous_mode: Whether to apply anonymous identity for each request.
+    Returns:
+        Callable: Aiohttp middleware function.
+    """
+
+    @middleware
+    async def anonymous_claims_middleware(request, handler):
+        """Inject claims for anonymous users if anonymous mode is active."""
+        if use_anonymous_mode:
+            request["claims_identity"] = ClaimsIdentity(
+                {
+                    AuthenticationConstants.AUDIENCE_CLAIM: "anonymous",
+                    AuthenticationConstants.APP_ID_CLAIM: "anonymous-app",
+                },
+                False,
+                "Anonymous",
+            )
+        return await handler(request)
+
+    return anonymous_claims_middleware
+
+
+def create_app(config: AppConfig) -> web.Application:
+    """Create and configure the aiohttp web application.
+
+    Args:
+        config: Loaded application configuration.
+    Returns:
+        web.Application: Fully initialized web application.
+    """
+    middleware_fn = build_anonymous_claims_middleware(config.use_anonymous_mode)
+    app = web.Application(middlewares=[middleware_fn])
+
+    storage = MemoryStorage()
+    agent = build_agent()
+    connection_manager = build_connection_manager(config)
+    adapter = build_adapter(connection_manager)
+    authorization = build_authorization(storage, connection_manager, config)
+    agent_app = build_agent_application(storage, adapter, authorization, config)
+
+    @agent_app.activity("message")
+    async def on_message(context: TurnContext, _: TurnState):
+        user_message = context.activity.text or ""
+        if not user_message.strip():
+            return
+
+        response = await agent.run(user_message)
+        response_text = response.text
+
+        await context.send_activity(response_text)
+
+    async def health(request: web.Request) -> web.Response:
+        return web.json_response({"status": "ok"})
+
+    async def entry_point(req: web.Request) -> web.Response:
+        return await start_agent_process(req, req.app["agent_app"], req.app["adapter"])
+
+    app.add_routes([
+        web.get("/api/health", health),
+        web.get("/api/messages", lambda _: web.Response(status=200)),
+        web.post("/api/messages", entry_point),
+    ])
+
+    app["agent_app"] = agent_app
+    app["adapter"] = adapter
+
+    return app
+
+
+def main() -> None:
+    """Entry point: load configuration, build app, and start server."""
+    config = load_app_config()
+    app = create_app(config)
+    web.run_app(app, host="localhost", port=config.port)
+
+
+if __name__ == "__main__":
+    main()