diff --git a/lib/crewai/src/crewai/llms/providers/azure/completion.py b/lib/crewai/src/crewai/llms/providers/azure/completion.py
index 7f3db08a8..e6d6c7ef3 100644
--- a/lib/crewai/src/crewai/llms/providers/azure/completion.py
+++ b/lib/crewai/src/crewai/llms/providers/azure/completion.py
@@ -1,8 +1,10 @@
 from __future__ import annotations
 
+from collections.abc import Callable
 import json
 import logging
 import os
+import time
 from typing import TYPE_CHECKING, Any
 
 from pydantic import BaseModel
@@ -35,7 +37,9 @@ try:
         StreamingChatCompletionsUpdate,
     )
     from azure.core.credentials import (
+        AccessToken,
         AzureKeyCredential,
+        TokenCredential,
     )
     from azure.core.exceptions import (
         HttpResponseError,
@@ -50,6 +54,41 @@ except ImportError:
     ) from None
 
 
+class _TokenProviderCredential(TokenCredential):
+    """Wrapper class to convert an azure_ad_token_provider callable into a TokenCredential.
+
+    This allows users to pass a token provider function (like the one returned by
+    azure.identity.get_bearer_token_provider) to the Azure AI Inference client.
+    """
+
+    def __init__(self, provider: Callable[..., Any]):
+        """Initialize with a token provider callable.
+
+        Args:
+            provider: A callable that returns an access token. This is typically
+                     the result of azure.identity.get_bearer_token_provider().
+        """
+        self._provider = provider
+
+    def get_token(self, *scopes: str, **kwargs: Any) -> AccessToken:
+        """Get an access token from the provider.
+
+        Args:
+            *scopes: The scopes for the token (ignored, as the provider handles this).
+            **kwargs: Additional keyword arguments (ignored).
+
+        Returns:
+            An AccessToken instance.
+        """
+        raw = self._provider()
+
+        if isinstance(raw, AccessToken):
+            return raw
+
+        # If it's a bare string, wrap it with a default expiry of 1 hour
+        return AccessToken(str(raw), int(time.time()) + 3600)
+
+
 class AzureCompletion(BaseLLM):
     """Azure AI Inference native completion implementation.
 
@@ -73,6 +112,8 @@ class AzureCompletion(BaseLLM):
         stop: list[str] | None = None,
         stream: bool = False,
         interceptor: BaseInterceptor[Any, Any] | None = None,
+        azure_ad_token_provider: Callable[..., Any] | None = None,
+        credential: TokenCredential | None = None,
         **kwargs: Any,
     ):
         """Initialize Azure AI Inference chat completion client.
@@ -92,6 +133,13 @@ class AzureCompletion(BaseLLM):
             stop: Stop sequences
             stream: Enable streaming responses
             interceptor: HTTP interceptor (not yet supported for Azure).
+            azure_ad_token_provider: A callable that returns an Azure AD token.
+                This is typically the result of azure.identity.get_bearer_token_provider().
+                Use this for Azure AD token-based authentication instead of API keys.
+            credential: An Azure TokenCredential instance for authentication.
+                This can be any credential from azure.identity (e.g., DefaultAzureCredential,
+                ManagedIdentityCredential). Takes precedence over azure_ad_token_provider
+                and api_key.
             **kwargs: Additional parameters
         """
         if interceptor is not None:
@@ -107,6 +155,7 @@ class AzureCompletion(BaseLLM):
         self.api_key = api_key or os.getenv("AZURE_API_KEY")
         self.endpoint = (
             endpoint
+            or kwargs.get("base_url")
             or os.getenv("AZURE_ENDPOINT")
             or os.getenv("AZURE_OPENAI_ENDPOINT")
             or os.getenv("AZURE_API_BASE")
@@ -115,31 +164,45 @@ class AzureCompletion(BaseLLM):
         self.timeout = timeout
         self.max_retries = max_retries
 
-        if not self.api_key:
-            raise ValueError(
-                "Azure API key is required. Set AZURE_API_KEY environment variable or pass api_key parameter."
-            )
         if not self.endpoint:
             raise ValueError(
                 "Azure endpoint is required. Set AZURE_ENDPOINT environment variable or pass endpoint parameter."
             )
 
+        # Determine the credential to use (priority: credential > azure_ad_token_provider > api_key)
+        chosen_credential: TokenCredential | AzureKeyCredential | None = None
+
+        if credential is not None:
+            chosen_credential = credential
+        elif azure_ad_token_provider is not None:
+            chosen_credential = _TokenProviderCredential(azure_ad_token_provider)
+        elif self.api_key:
+            chosen_credential = AzureKeyCredential(self.api_key)
+
+        if chosen_credential is None:
+            raise ValueError(
+                "Azure authentication is required. Provide one of: "
+                "api_key (or set AZURE_API_KEY environment variable), "
+                "azure_ad_token_provider (callable from azure.identity.get_bearer_token_provider), "
+                "or credential (TokenCredential instance from azure.identity)."
+            )
+
         # Validate and potentially fix Azure OpenAI endpoint URL
         self.endpoint = self._validate_and_fix_endpoint(self.endpoint, model)
 
         # Build client kwargs
-        client_kwargs = {
+        client_kwargs: dict[str, Any] = {
             "endpoint": self.endpoint,
-            "credential": AzureKeyCredential(self.api_key),
+            "credential": chosen_credential,
         }
 
         # Add api_version if specified (primarily for Azure OpenAI endpoints)
         if self.api_version:
             client_kwargs["api_version"] = self.api_version
 
-        self.client = ChatCompletionsClient(**client_kwargs)  # type: ignore[arg-type]
+        self.client = ChatCompletionsClient(**client_kwargs)
 
-        self.async_client = AsyncChatCompletionsClient(**client_kwargs)  # type: ignore[arg-type]
+        self.async_client = AsyncChatCompletionsClient(**client_kwargs)
 
         self.top_p = top_p
         self.frequency_penalty = frequency_penalty
diff --git a/lib/crewai/tests/llms/azure/test_azure.py b/lib/crewai/tests/llms/azure/test_azure.py
index ec881363d..e6b6efb58 100644
--- a/lib/crewai/tests/llms/azure/test_azure.py
+++ b/lib/crewai/tests/llms/azure/test_azure.py
@@ -382,13 +382,13 @@ def test_azure_raises_error_when_endpoint_missing():
             AzureCompletion(model="gpt-4", api_key="test-key")
 
 
-def test_azure_raises_error_when_api_key_missing():
-    """Test that AzureCompletion raises ValueError when API key is missing"""
+def test_azure_raises_error_when_no_auth_provided():
+    """Test that AzureCompletion raises ValueError when no authentication is provided"""
     from crewai.llms.providers.azure.completion import AzureCompletion
 
     # Clear environment variables
     with patch.dict(os.environ, {}, clear=True):
-        with pytest.raises(ValueError, match="Azure API key is required"):
+        with pytest.raises(ValueError, match="Azure authentication is required"):
             AzureCompletion(model="gpt-4", endpoint="https://test.openai.azure.com")
 
 
@@ -1112,4 +1112,208 @@ def test_azure_completion_params_preparation_with_drop_params():
         messages = [{"role": "user", "content": "Hello"}]
         params = llm._prepare_completion_params(messages)
 
-        assert params.get('stop') == None
\ No newline at end of file
+        assert params.get('stop') == None
+
+
+def test_azure_ad_token_provider_authentication():
+    """
+    Test that AzureCompletion can be initialized with azure_ad_token_provider
+    for Azure AD token-based authentication instead of API keys.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion
+
+    # Mock token provider that returns a string token
+    def mock_token_provider():
+        return "mock-azure-ad-token"
+
+    # Clear environment variables to ensure no API key is used
+    with patch.dict(os.environ, {}, clear=True):
+        completion = AzureCompletion(
+            model="gpt-4",
+            endpoint="https://test.openai.azure.com",
+            azure_ad_token_provider=mock_token_provider
+        )
+
+        assert completion.endpoint == "https://test.openai.azure.com/openai/deployments/gpt-4"
+        assert completion.api_key is None
+
+
+def test_azure_ad_token_provider_with_access_token():
+    """
+    Test that azure_ad_token_provider works when it returns an AccessToken object.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion, _TokenProviderCredential
+    from azure.core.credentials import AccessToken
+
+    # Mock token provider that returns an AccessToken object
+    mock_access_token = AccessToken("mock-token-string", 1234567890)
+
+    def mock_token_provider():
+        return mock_access_token
+
+    # Test the _TokenProviderCredential wrapper
+    credential = _TokenProviderCredential(mock_token_provider)
+    token = credential.get_token("https://cognitiveservices.azure.com/.default")
+
+    assert token.token == "mock-token-string"
+    assert token.expires_on == 1234567890
+
+
+def test_azure_ad_token_provider_with_string_token():
+    """
+    Test that azure_ad_token_provider works when it returns a plain string token.
+    """
+    from crewai.llms.providers.azure.completion import _TokenProviderCredential
+
+    # Mock token provider that returns a plain string
+    def mock_token_provider():
+        return "plain-string-token"
+
+    credential = _TokenProviderCredential(mock_token_provider)
+    token = credential.get_token("https://cognitiveservices.azure.com/.default")
+
+    assert token.token == "plain-string-token"
+    # Should have a default expiry time (approximately 1 hour from now)
+    assert token.expires_on > 0
+
+
+def test_azure_credential_authentication():
+    """
+    Test that AzureCompletion can be initialized with a TokenCredential instance.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion
+    from azure.core.credentials import AccessToken, TokenCredential
+
+    # Create a mock TokenCredential
+    class MockTokenCredential(TokenCredential):
+        def get_token(self, *scopes, **kwargs):
+            return AccessToken("mock-credential-token", 1234567890)
+
+    mock_credential = MockTokenCredential()
+
+    # Clear environment variables to ensure no API key is used
+    with patch.dict(os.environ, {}, clear=True):
+        completion = AzureCompletion(
+            model="gpt-4",
+            endpoint="https://test.openai.azure.com",
+            credential=mock_credential
+        )
+
+        assert completion.endpoint == "https://test.openai.azure.com/openai/deployments/gpt-4"
+        assert completion.api_key is None
+
+
+def test_azure_credential_takes_precedence_over_api_key():
+    """
+    Test that credential parameter takes precedence over api_key when both are provided.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion
+    from azure.core.credentials import AccessToken, TokenCredential
+
+    class MockTokenCredential(TokenCredential):
+        def get_token(self, *scopes, **kwargs):
+            return AccessToken("credential-token", 1234567890)
+
+    mock_credential = MockTokenCredential()
+
+    # Provide both credential and api_key
+    with patch.dict(os.environ, {}, clear=True):
+        completion = AzureCompletion(
+            model="gpt-4",
+            endpoint="https://test.openai.azure.com",
+            api_key="should-not-be-used",
+            credential=mock_credential
+        )
+
+        # The completion should be created successfully with the credential
+        assert completion.endpoint == "https://test.openai.azure.com/openai/deployments/gpt-4"
+
+
+def test_azure_ad_token_provider_takes_precedence_over_api_key():
+    """
+    Test that azure_ad_token_provider takes precedence over api_key when both are provided.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion
+
+    def mock_token_provider():
+        return "token-provider-token"
+
+    # Provide both azure_ad_token_provider and api_key
+    with patch.dict(os.environ, {}, clear=True):
+        completion = AzureCompletion(
+            model="gpt-4",
+            endpoint="https://test.openai.azure.com",
+            api_key="should-not-be-used",
+            azure_ad_token_provider=mock_token_provider
+        )
+
+        # The completion should be created successfully with the token provider
+        assert completion.endpoint == "https://test.openai.azure.com/openai/deployments/gpt-4"
+
+
+def test_azure_credential_takes_precedence_over_token_provider():
+    """
+    Test that credential takes precedence over azure_ad_token_provider when both are provided.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion
+    from azure.core.credentials import AccessToken, TokenCredential
+
+    class MockTokenCredential(TokenCredential):
+        def get_token(self, *scopes, **kwargs):
+            return AccessToken("credential-token", 1234567890)
+
+    mock_credential = MockTokenCredential()
+
+    def mock_token_provider():
+        return "token-provider-token"
+
+    # Provide both credential and azure_ad_token_provider
+    with patch.dict(os.environ, {}, clear=True):
+        completion = AzureCompletion(
+            model="gpt-4",
+            endpoint="https://test.openai.azure.com",
+            credential=mock_credential,
+            azure_ad_token_provider=mock_token_provider
+        )
+
+        # The completion should be created successfully with the credential
+        assert completion.endpoint == "https://test.openai.azure.com/openai/deployments/gpt-4"
+
+
+def test_azure_ad_token_provider_via_llm_factory():
+    """
+    Test that azure_ad_token_provider can be passed through the LLM factory class.
+    """
+    def mock_token_provider():
+        return "mock-token"
+
+    # Clear environment variables
+    with patch.dict(os.environ, {
+        "AZURE_ENDPOINT": "https://test.openai.azure.com"
+    }, clear=True):
+        llm = LLM(
+            model="azure/gpt-4",
+            azure_ad_token_provider=mock_token_provider
+        )
+
+        from crewai.llms.providers.azure.completion import AzureCompletion
+        assert isinstance(llm, AzureCompletion)
+        assert llm.api_key is None
+
+
+def test_azure_base_url_parameter_for_endpoint():
+    """
+    Test that base_url parameter can be used as an alternative to endpoint.
+    This is useful for users migrating from other providers.
+    """
+    from crewai.llms.providers.azure.completion import AzureCompletion
+
+    # Clear environment variables
+    with patch.dict(os.environ, {}, clear=True):
+        completion = AzureCompletion(
+            model="gpt-4",
+            base_url="https://test.openai.azure.com",
+            api_key="test-key"
+        )
+
+        assert completion.endpoint == "https://test.openai.azure.com/openai/deployments/gpt-4"