feat: MFA support in passwordless

examples/MFA.md

@@ -545,15 +545,16 @@ The SDK does not store your private key, so you must re-supply it on the `verify
 
 By default, `verify()` returns tokens without persisting them to the session store. However, you can automatically persist tokens by setting `persist=True`.
 
-> [!WARNING]
-> `persist=True` **updates an existing session** — it does not create one. On a passkey-first login (`signin_with_passkey` → `MfaRequiredError`) no session exists yet, so `persist=True` raises `MfaVerifyError("No existing session found to update with MFA tokens")` and discards the tokens `verify()` just obtained. On that path, use `persist=False` (the default) and store the returned tokens yourself — see [Passkeys.md → Completing MFA on a passkey login](Passkeys.md#completing-mfa-on-a-passkey-login-and-where-the-session-comes-from).
+> [!NOTE]
+> `persist=True` updates an existing session when one is present. For first-login MFA flows where the SDK has not created a session yet, `ServerClient.mfa` can create the initial session from the final MFA token response when that response includes an ID token.
 
 ### Automatic Session Update
 
 When you set `persist=True`, the SDK will:
-1. Update the session's `access_token` for the specified audience
-2. Update the session's `id_token` if present
-3. Add the token to the `token_sets` array with expiration information
+1. Update an existing session, or create the initial session when the MFA flow completed a first login
+2. Persist the `access_token` for the specified audience
+3. Persist the `id_token` if present
+4. Add the token to the `token_sets` array with expiration information
 
 ```python
 verify_response = await server_client.mfa.verify(

examples/Passwordless.md

@@ -258,7 +258,7 @@ result = await server_client.passwordless.verify(
 
 ## Completing MFA during passwordless login
 
-Auth0 can require MFA during passwordless OTP verification. In that case, the SDK raises `MfaRequiredError` before it creates a session. Complete the MFA challenge with `server_client.mfa`, then persist the returned tokens according to your framework's session integration.
+Auth0 can require MFA during passwordless OTP verification. In that case, the SDK raises `MfaRequiredError` before it creates a session. Complete the MFA challenge with `server_client.mfa` and pass `persist=True` on verification so the SDK creates the session from the final MFA token response.
 
 ```python
 from auth0_server_python.error import MfaRequiredError
@@ -280,20 +280,19 @@ except MfaRequiredError as e:
         store_options={"request": request, "response": response},
     )
 
-    verify_response = await server_client.mfa.verify(
-        {"mfa_token": e.mfa_token, "otp": mfa_code},
+    await server_client.mfa.verify(
+        {"mfa_token": e.mfa_token, "otp": mfa_code, "persist": True},
         store_options={"request": request, "response": response},
     )
 
-    save_session_for_user(
-        access_token=verify_response.access_token,
-        id_token=verify_response.id_token,
-        refresh_token=verify_response.refresh_token,
+    session = await server_client.get_session(
+        store_options={"request": request, "response": response},
     )
+    user = session["user"]
 ```
 
 > [!NOTE]
-> Passwordless OTP MFA is like passkey-first MFA: there is no existing application session yet. Use the returned MFA tokens to create the session in your framework layer rather than trying to update a session that does not exist.
+> Passwordless OTP MFA is like passkey-first MFA: there is no existing application session until MFA verification succeeds. `persist=True` creates the initial SDK session when the MFA response includes an ID token.
 
 ## Error Handling
 

src/auth0_server_python/auth_server/mfa_client.py

@@ -5,7 +5,8 @@
 
 import json
 import time
-from typing import TYPE_CHECKING, Any, Callable, Optional, Union
+from collections.abc import Awaitable, Callable
+from typing import TYPE_CHECKING, Any, Optional, Union
 
 import httpx
 
@@ -66,7 +67,10 @@ def __init__(
         secret: str,
         state_store=None,
         state_identifier: str = "_a0_session",
-        headers: Optional[dict[str, str]] = None
+        headers: Optional[dict[str, str]] = None,
+        session_establisher: Optional[
+            Callable[..., Awaitable[None]]
+        ] = None,
     ):
         if callable(domain):
             self._domain = None
@@ -80,6 +84,7 @@ def __init__(
         self._state_store = state_store
         self._state_identifier = state_identifier
         self._headers = headers or {}
+        self._session_establisher = session_establisher
 
     def _get_http_client(self, **kwargs) -> httpx.AsyncClient:
         """Return an httpx.AsyncClient with default headers injected."""
@@ -626,6 +631,14 @@ async def _persist_mfa_tokens(
             )
 
             if not state_data:
+                if self._session_establisher:
+                    await self._session_establisher(
+                        verify_response=verify_response,
+                        audience=audience,
+                        scope=scope,
+                        store_options=store_options,
+                    )
+                    return
                 raise MfaVerifyError(
                     "No existing session found to update with MFA tokens"
                 )

src/auth0_server_python/auth_server/server_client.py

@@ -36,6 +36,7 @@
     LogoutOptions,
     LogoutTokenClaims,
     MfaRequirements,
+    MfaVerifyResponse,
     PasskeyAuthResponse,
     PasskeyLoginChallengeResponse,
     PasskeyLoginResult,
@@ -64,6 +65,7 @@
     InvalidArgumentError,
     IssuerValidationError,
     MfaRequiredError,
+    MfaVerifyError,
     MissingRequiredArgumentError,
     MissingTransactionError,
     OrganizationTokenValidationError,
@@ -213,6 +215,7 @@ def __init__(
             state_store=self._state_store,
             state_identifier=self._state_identifier,
             headers=self._telemetry_headers,
+            session_establisher=self._establish_session_from_mfa_verify_response,
         )
 
         # Initialize Passwordless client (composes this client)
@@ -680,6 +683,65 @@ async def _persist_session_from_token_response(
         )
         return state_data
 
+    async def _establish_session_from_mfa_verify_response(
+        self,
+        *,
+        verify_response: MfaVerifyResponse,
+        audience: str,
+        scope: Optional[str],
+        store_options: Optional[dict[str, Any]] = None,
+    ) -> None:
+        """
+        Create the initial SDK session after first-login MFA completes.
+
+        Step-up MFA updates an existing session. First-login MFA flows such as
+        passwordless OTP and passkey can reach MFA before any SDK session exists,
+        so the final MFA token response must be validated and persisted as the
+        initial session.
+        """
+        token_response = verify_response.model_dump(exclude_none=True)
+        id_token = token_response.get("id_token")
+        if not id_token:
+            raise MfaVerifyError(
+                "MFA verification response did not include an ID token; cannot create a session"
+            )
+
+        origin_domain = await self._resolve_current_domain(store_options)
+        metadata = await self._get_oidc_metadata_cached(origin_domain)
+        origin_issuer = metadata.get("issuer")
+        jwks = await self._get_jwks_cached(origin_domain, metadata)
+
+        try:
+            claims = await self._verify_and_decode_jwt(
+                id_token, jwks, audience=self._client_id
+            )
+        except ValueError as e:
+            raise MfaVerifyError(str(e)) from e
+        except jwt.InvalidAudienceError as e:
+            raise MfaVerifyError(
+                "ID token audience mismatch. Ensure your client_id is configured correctly."
+            ) from e
+        except jwt.InvalidTokenError as e:
+            raise MfaVerifyError(f"ID token verification failed: {str(e)}") from e
+
+        token_issuer = claims.get("iss", "")
+        if self._normalize_url(token_issuer) != self._normalize_url(origin_issuer):
+            raise MfaVerifyError(
+                "ID token issuer mismatch. Ensure your Auth0 domain is configured correctly."
+            )
+
+        user_claims = UserClaims.model_validate(claims)
+        await self._persist_session_from_token_response(
+            token_response=token_response,
+            user_claims=user_claims,
+            origin_domain=origin_domain,
+            audience=audience,
+            session_expires_at=user_claims.session_expiry,
+            issued_at=claims.get("iat"),
+            id_token_claims=claims,
+            store_options=store_options,
+        )
+
     async def complete_interactive_login(
         self,
         url: str,

src/auth0_server_python/tests/test_passwordless_client.py

@@ -835,6 +835,71 @@ async def test_verify_mfa_required_raises_typed_error(self, mocker):
         assert decrypted.mfa_token == "raw_server_mfa_token"
         client._state_store.set.assert_not_awaited()
 
+    @pytest.mark.asyncio
+    async def test_passwordless_mfa_verify_persist_creates_session(self, mocker):
+        client = _make_client()
+        mocker.patch.object(client, "_get_oidc_metadata_cached", return_value=METADATA)
+        mocker.patch.object(
+            client,
+            "_get_jwks_cached",
+            return_value={"keys": [{"kty": "RSA", "kid": "k1"}]},
+        )
+        mocker.patch.object(
+            client,
+            "_verify_and_decode_jwt",
+            return_value={
+                "iss": ISSUER,
+                "sub": "auth0|mfa-user",
+                "sid": "SID-MFA",
+                "iat": 1_000,
+                "email": "user@example.com",
+            },
+        )
+        _mock_http(
+            client,
+            403,
+            {
+                "error": "mfa_required",
+                "error_description": "Additional factor required",
+                "mfa_token": "raw_server_mfa_token",
+            },
+        )
+
+        with pytest.raises(MfaRequiredError) as exc:
+            await client.passwordless.verify(
+                VerifyPasswordlessOtpOptions(
+                    connection="email", email="user@example.com", verification_code="123456"
+                ),
+                store_options={},
+            )
+
+        client._state_store.get = AsyncMock(return_value=None)
+        mfa_response = AsyncMock()
+        mfa_response.status_code = 200
+        mfa_response.headers = {}
+        mfa_response.json = MagicMock(
+            return_value={
+                "access_token": "mfa_at",
+                "id_token": "mfa_idt",
+                "token_type": "Bearer",
+                "expires_in": 3600,
+                "scope": "openid profile email",
+            }
+        )
+        mocker.patch("httpx.AsyncClient.post", new_callable=AsyncMock, return_value=mfa_response)
+
+        await client.mfa.verify(
+            {"mfa_token": exc.value.mfa_token, "otp": "654321", "persist": True},
+            store_options={},
+        )
+
+        client._state_store.set.assert_awaited_once()
+        saved_state = client._state_store.set.await_args.args[1]
+        assert saved_state.user.sub == "auth0|mfa-user"
+        assert saved_state.id_token == "mfa_idt"
+        assert saved_state.internal.sid == "SID-MFA"
+        assert saved_state.token_sets[0].access_token == "mfa_at"
+
     @pytest.mark.asyncio
     async def test_verify_mfa_required_without_token_falls_through(self, mocker):
         # Third-party-strict / flex-commands-with-FF-off: 403 mfa_required with