diff --git a/src/azure-cli-core/azure/cli/core/_profile.py b/src/azure-cli-core/azure/cli/core/_profile.py
index 58aa33340b4..78449018190 100644
--- a/src/azure-cli-core/azure/cli/core/_profile.py
+++ b/src/azure-cli-core/azure/cli/core/_profile.py
@@ -347,6 +347,46 @@ def get_login_credentials(self, resource=None, client_id=None, subscription_id=N
                 str(account[_TENANT_ID]))
 
     def get_raw_token(self, resource=None, scopes=None, subscription=None, tenant=None):
+        # Check if AZ_USE_AZD_AUTH environment variable is set
+        if os.environ.get('AZ_USE_AZD_AUTH'):
+            try:
+                from azure.identity import AzureDeveloperCliCredential
+                
+                # Convert resource to scopes if needed
+                if resource and not scopes:
+                    from .auth.util import resource_to_scopes
+                    scopes = resource_to_scopes(resource)
+                
+                # Use ARM as the default scopes
+                if not scopes:
+                    scopes = self._arm_scope
+                
+                # Create Azure Developer CLI credential
+                azd_credential = AzureDeveloperCliCredential()
+                sdk_token = azd_credential.get_token(*scopes)
+                
+                # Convert epoch int 'expires_on' to datetime string 'expiresOn' for backward compatibility
+                # WARNING: expiresOn is deprecated and will be removed in future release.
+                import datetime
+                expiresOn = datetime.datetime.fromtimestamp(sdk_token.expires_on).strftime("%Y-%m-%d %H:%M:%S.%f")
+
+                token_entry = {
+                    'accessToken': sdk_token.token,
+                    'expires_on': sdk_token.expires_on,  # epoch int, like 1605238724
+                    'expiresOn': expiresOn  # datetime string, like "2020-11-12 13:50:47.114324"
+                }
+
+                # (tokenType, accessToken, tokenEntry)
+                creds = 'Bearer', sdk_token.token, token_entry
+
+                # For AZD authentication, we don't have subscription/tenant info from the current account
+                # So we return None for these values to let the caller handle them appropriately
+                return (creds, None, None)
+                
+            except Exception as ex:
+                logger.warning("Failed to use Azure Developer CLI credential: %s. Falling back to standard authentication.", str(ex))
+                # Fall through to standard authentication flow
+
         # Convert resource to scopes
         if resource and not scopes:
             from .auth.util import resource_to_scopes
diff --git a/src/azure-cli-core/setup.py b/src/azure-cli-core/setup.py
index 35952b82f14..2b2a6413e9c 100644
--- a/src/azure-cli-core/setup.py
+++ b/src/azure-cli-core/setup.py
@@ -45,6 +45,7 @@
 DEPENDENCIES = [
     'argcomplete~=2.0',
     'azure-cli-telemetry==1.0.8.*',
+    'azure-identity>=1.12.0',
     'azure-mgmt-core>=1.2.0,<2',
     'cryptography',
     # On Linux, the distribution (Ubuntu, Debian, etc) and version are logged in telemetry
@@ -53,7 +54,7 @@
     'jmespath',
     'knack~=0.10.1',
     'msal-extensions~=1.0.0',
-    'msal[broker]==1.20.0',
+    'msal[broker]>=1.20.0,<2.0.0',
     'msrestazure~=0.6.4',
     'packaging>=20.9',
     'paramiko>=2.0.8,<4.0.0',
diff --git a/src/azure-cli/requirements.py3.Darwin.txt b/src/azure-cli/requirements.py3.Darwin.txt
index 678da5ed2fc..2d9173b8eb6 100644
--- a/src/azure-cli/requirements.py3.Darwin.txt
+++ b/src/azure-cli/requirements.py3.Darwin.txt
@@ -9,6 +9,7 @@ azure-cli-telemetry==1.0.8
 azure-cli==2.48.1
 azure-common==1.1.22
 azure-core==1.26.0
+azure-identity==1.15.0
 azure-cosmos==3.2.0
 azure-data-tables==12.4.0
 azure-datalake-store==0.0.49
diff --git a/src/azure-cli/requirements.py3.Linux.txt b/src/azure-cli/requirements.py3.Linux.txt
index 0cacffa77b8..e56fd96c146 100644
--- a/src/azure-cli/requirements.py3.Linux.txt
+++ b/src/azure-cli/requirements.py3.Linux.txt
@@ -9,6 +9,7 @@ azure-cli-telemetry==1.0.8
 azure-cli==2.48.1
 azure-common==1.1.22
 azure-core==1.26.0
+azure-identity==1.15.0
 azure-cosmos==3.2.0
 azure-data-tables==12.4.0
 azure-datalake-store==0.0.49
diff --git a/src/azure-cli/requirements.py3.windows.txt b/src/azure-cli/requirements.py3.windows.txt
index 36a05a24605..b560a7b801f 100644
--- a/src/azure-cli/requirements.py3.windows.txt
+++ b/src/azure-cli/requirements.py3.windows.txt
@@ -9,6 +9,7 @@ azure-cli-telemetry==1.0.8
 azure-cli==2.48.1
 azure-common==1.1.22
 azure-core==1.26.0
+azure-identity==1.15.0
 azure-cosmos==3.2.0
 azure-data-tables==12.4.0
 azure-datalake-store==0.0.49