diff --git a/airflow/providers/microsoft/azure/hooks/adx.py b/airflow/providers/microsoft/azure/hooks/adx.py
index 83f955753dbf8..f2cfd1a6c7e53 100644
--- a/airflow/providers/microsoft/azure/hooks/adx.py
+++ b/airflow/providers/microsoft/azure/hooks/adx.py
@@ -28,6 +28,7 @@
 import warnings
 from typing import Any
 
+from azure.identity import DefaultAzureCredential
 from azure.kusto.data import ClientRequestProperties, KustoClient, KustoConnectionStringBuilder
 from azure.kusto.data.exceptions import KustoServiceError
 from azure.kusto.data.response import KustoResponseDataSetV2
@@ -105,7 +106,7 @@ def get_ui_field_behaviour() -> dict[str, Any]:
             "placeholders": {
                 "login": "Varies with authentication method",
                 "password": "Varies with authentication method",
-                "auth_method": "AAD_APP/AAD_APP_CERT/AAD_CREDS/AAD_DEVICE",
+                "auth_method": "AAD_APP/AAD_APP_CERT/AAD_CREDS/AAD_DEVICE/AZURE_TOKEN_CRED",
                 "tenant": "Used with AAD_APP/AAD_APP_CERT/AAD_CREDS",
                 "certificate": "Used with AAD_APP_CERT",
                 "thumbprint": "Used with AAD_APP_CERT",
@@ -183,6 +184,11 @@ def get_required_param(name: str) -> str:
             )
         elif auth_method == "AAD_DEVICE":
             kcsb = KustoConnectionStringBuilder.with_aad_device_authentication(cluster)
+        elif auth_method == "AZURE_TOKEN_CRED":
+            kcsb = KustoConnectionStringBuilder.with_azure_token_credential(
+                connection_string=cluster,
+                credential=DefaultAzureCredential(),
+            )
         else:
             raise AirflowException(f"Unknown authentication method: {auth_method}")
 
diff --git a/tests/providers/microsoft/azure/hooks/test_adx.py b/tests/providers/microsoft/azure/hooks/test_adx.py
index ad79d3e0c6484..4cf61c440b4ae 100644
--- a/tests/providers/microsoft/azure/hooks/test_adx.py
+++ b/tests/providers/microsoft/azure/hooks/test_adx.py
@@ -110,6 +110,37 @@ def test_conn_method_aad_creds(self, mock_init):
             )
         )
 
+    @mock.patch("azure.identity._credentials.environment.ClientSecretCredential")
+    def test_conn_method_token_creds(self, mock1):
+        db.merge_conn(
+            Connection(
+                conn_id=ADX_TEST_CONN_ID,
+                conn_type="azure_data_explorer",
+                host="https://help.kusto.windows.net",
+                extra=json.dumps(
+                    {
+                        "auth_method": "AZURE_TOKEN_CRED",
+                    }
+                ),
+            )
+        )
+        with patch.dict(
+            in_dict=os.environ,
+            values={
+                "AZURE_TENANT_ID": "tenant",
+                "AZURE_CLIENT_ID": "client",
+                "AZURE_CLIENT_SECRET": "secret",
+            },
+        ):
+            hook = AzureDataExplorerHook(azure_data_explorer_conn_id=ADX_TEST_CONN_ID)
+            assert hook.connection._kcsb.data_source == "https://help.kusto.windows.net"
+            mock1.assert_called_once_with(
+                tenant_id="tenant",
+                client_id="client",
+                client_secret="secret",
+                authority="https://login.microsoftonline.com",
+            )
+
     @mock.patch.object(KustoClient, "__init__")
     def test_conn_method_aad_app(self, mock_init):
         mock_init.return_value = None