diff --git a/dev_requirements.txt b/dev_requirements.txt
index 2a0938bec3..ad7330598d 100644
--- a/dev_requirements.txt
+++ b/dev_requirements.txt
@@ -13,4 +13,4 @@ ujson>=4.2.0
 uvloop
 vulture>=2.3.0
 numpy>=1.24.0
-redis-entraid==0.3.0b1
+redis-entraid==0.4.0b2
diff --git a/tests/entraid_utils.py b/tests/entraid_utils.py
index daefbd3956..529c3ccdee 100644
--- a/tests/entraid_utils.py
+++ b/tests/entraid_utils.py
@@ -19,6 +19,8 @@
     ServicePrincipalIdentityProviderConfig,
     _create_provider_from_managed_identity,
     _create_provider_from_service_principal,
+    DefaultAzureCredentialIdentityProviderConfig,
+    _create_provider_from_default_azure_credential,
 )
 from tests.conftest import mock_identity_provider
 
@@ -26,6 +28,7 @@
 class AuthType(Enum):
     MANAGED_IDENTITY = "managed_identity"
     SERVICE_PRINCIPAL = "service_principal"
+    DEFAULT_AZURE_CREDENTIAL = "default_azure_credential"
 
 
 def identity_provider(request) -> IdentityProviderInterface:
@@ -37,18 +40,25 @@ def identity_provider(request) -> IdentityProviderInterface:
     if request.param.get("mock_idp", None) is not None:
         return mock_identity_provider()
 
-    auth_type = kwargs.pop("auth_type", AuthType.SERVICE_PRINCIPAL)
+    auth_type = kwargs.get("auth_type", AuthType.SERVICE_PRINCIPAL)
     config = get_identity_provider_config(request=request)
 
-    if auth_type == "MANAGED_IDENTITY":
+    if auth_type == AuthType.MANAGED_IDENTITY:
         return _create_provider_from_managed_identity(config)
 
+    if auth_type == AuthType.DEFAULT_AZURE_CREDENTIAL:
+        return _create_provider_from_default_azure_credential(config)
+
     return _create_provider_from_service_principal(config)
 
 
 def get_identity_provider_config(
     request,
-) -> Union[ManagedIdentityProviderConfig, ServicePrincipalIdentityProviderConfig]:
+) -> Union[
+    ManagedIdentityProviderConfig,
+    ServicePrincipalIdentityProviderConfig,
+    DefaultAzureCredentialIdentityProviderConfig,
+]:
     if hasattr(request, "param"):
         kwargs = request.param.get("idp_kwargs", {})
     else:
@@ -59,6 +69,9 @@ def get_identity_provider_config(
     if auth_type == AuthType.MANAGED_IDENTITY:
         return _get_managed_identity_provider_config(request)
 
+    if auth_type == AuthType.DEFAULT_AZURE_CREDENTIAL:
+        return _get_default_azure_credential_provider_config(request)
+
     return _get_service_principal_provider_config(request)
 
 
@@ -114,6 +127,26 @@ def _get_service_principal_provider_config(
     )
 
 
+def _get_default_azure_credential_provider_config(
+    request,
+) -> DefaultAzureCredentialIdentityProviderConfig:
+    scopes = os.getenv("AZURE_REDIS_SCOPES", ())
+
+    if hasattr(request, "param"):
+        kwargs = request.param.get("idp_kwargs", {})
+        token_kwargs = request.param.get("token_kwargs", {})
+    else:
+        kwargs = {}
+        token_kwargs = {}
+
+    if isinstance(scopes, str):
+        scopes = scopes.split(",")
+
+    return DefaultAzureCredentialIdentityProviderConfig(
+        scopes=scopes, app_kwargs=kwargs, token_kwargs=token_kwargs
+    )
+
+
 def get_entra_id_credentials_provider(request, cred_provider_kwargs):
     idp = identity_provider(request)
     expiration_refresh_ratio = cred_provider_kwargs.get(
diff --git a/tests/test_asyncio/conftest.py b/tests/test_asyncio/conftest.py
index 60e447e6fd..340d146ea3 100644
--- a/tests/test_asyncio/conftest.py
+++ b/tests/test_asyncio/conftest.py
@@ -1,6 +1,5 @@
 import random
 from contextlib import asynccontextmanager as _asynccontextmanager
-from enum import Enum
 from typing import Union
 
 import pytest
@@ -18,11 +17,6 @@
 from .compat import mock
 
 
-class AuthType(Enum):
-    MANAGED_IDENTITY = "managed_identity"
-    SERVICE_PRINCIPAL = "service_principal"
-
-
 async def _get_info(redis_url):
     client = redis.Redis.from_url(redis_url)
     info = await client.info()
diff --git a/tests/test_asyncio/test_credentials.py b/tests/test_asyncio/test_credentials.py
index ce8d76ea45..b4824be469 100644
--- a/tests/test_asyncio/test_credentials.py
+++ b/tests/test_asyncio/test_credentials.py
@@ -18,6 +18,7 @@
 from redis.exceptions import ConnectionError
 from redis.utils import str_if_bytes
 from tests.conftest import get_endpoint, skip_if_redis_enterprise
+from tests.entraid_utils import AuthType
 from tests.test_asyncio.conftest import get_credential_provider
 
 try:
@@ -616,8 +617,12 @@ class TestEntraIdCredentialsProvider:
                 "cred_provider_class": EntraIdCredentialsProvider,
                 "cred_provider_kwargs": {"block_for_initial": True},
             },
+            {
+                "cred_provider_class": EntraIdCredentialsProvider,
+                "idp_kwargs": {"auth_type": AuthType.DEFAULT_AZURE_CREDENTIAL},
+            },
         ],
-        ids=["blocked", "non-blocked"],
+        ids=["blocked", "non-blocked", "DefaultAzureCredential"],
         indirect=True,
     )
     @pytest.mark.asyncio
@@ -692,8 +697,12 @@ class TestClusterEntraIdCredentialsProvider:
                 "cred_provider_class": EntraIdCredentialsProvider,
                 "cred_provider_kwargs": {"block_for_initial": True},
             },
+            {
+                "cred_provider_class": EntraIdCredentialsProvider,
+                "idp_kwargs": {"auth_type": AuthType.DEFAULT_AZURE_CREDENTIAL},
+            },
         ],
-        ids=["blocked", "non-blocked"],
+        ids=["blocked", "non-blocked", "DefaultAzureCredential"],
         indirect=True,
     )
     @pytest.mark.asyncio
diff --git a/tests/test_credentials.py b/tests/test_credentials.py
index 1f98c5208d..58bbd01f28 100644
--- a/tests/test_credentials.py
+++ b/tests/test_credentials.py
@@ -22,6 +22,7 @@
     get_endpoint,
     skip_if_redis_enterprise,
 )
+from tests.entraid_utils import AuthType
 
 try:
     from redis_entraid.cred_provider import EntraIdCredentialsProvider
@@ -585,8 +586,12 @@ class TestEntraIdCredentialsProvider:
                 "cred_provider_class": EntraIdCredentialsProvider,
                 "single_connection_client": True,
             },
+            {
+                "cred_provider_class": EntraIdCredentialsProvider,
+                "idp_kwargs": {"auth_type": AuthType.DEFAULT_AZURE_CREDENTIAL},
+            },
         ],
-        ids=["pool", "single"],
+        ids=["pool", "single", "DefaultAzureCredential"],
         indirect=True,
     )
     @pytest.mark.onlynoncluster
@@ -656,8 +661,12 @@ class TestClusterEntraIdCredentialsProvider:
                 "cred_provider_class": EntraIdCredentialsProvider,
                 "single_connection_client": True,
             },
+            {
+                "cred_provider_class": EntraIdCredentialsProvider,
+                "idp_kwargs": {"auth_type": AuthType.DEFAULT_AZURE_CREDENTIAL},
+            },
         ],
-        ids=["pool", "single"],
+        ids=["pool", "single", "DefaultAzureCredential"],
         indirect=True,
     )
     @pytest.mark.onlycluster