diff --git a/docs/docs/usage-guide/changing_a_model.md b/docs/docs/usage-guide/changing_a_model.md
index 9eec3b64..36480d21 100644
--- a/docs/docs/usage-guide/changing_a_model.md
+++ b/docs/docs/usage-guide/changing_a_model.md
@@ -37,6 +37,17 @@ model="" # the OpenAI model you've deployed on Azure (e.g. gpt-4o)
 fallback_models=["..."]
 ```
 
+To use Azure AD (Entra id) based authentication set in your `.secrets.toml` (working from CLI), or in the GitHub `Settings > Secrets and variables` (working from GitHub App or GitHub Action):
+
+```toml
+[azure_ad]
+client_id = ""  # Your Azure AD application client ID
+client_secret = ""  # Your Azure AD application client secret
+tenant_id = ""  # Your Azure AD tenant ID
+api_base = ""  # Your Azure OpenAI service base URL (e.g., https://openai.xyz.com/)
+```
+
+
 Passing custom headers to the underlying LLM Model API can be done by setting extra_headers parameter to litellm.
 
 ```toml
diff --git a/pr_agent/algo/ai_handlers/litellm_ai_handler.py b/pr_agent/algo/ai_handlers/litellm_ai_handler.py
index 2ca04ea3..d717c087 100644
--- a/pr_agent/algo/ai_handlers/litellm_ai_handler.py
+++ b/pr_agent/algo/ai_handlers/litellm_ai_handler.py
@@ -1,5 +1,4 @@
 import os
-
 import litellm
 import openai
 import requests
@@ -31,6 +30,7 @@ class LiteLLMAIHandler(BaseAiHandler):
         self.azure = False
         self.api_base = None
         self.repetition_penalty = None
+        
         if get_settings().get("OPENAI.KEY", None):
             openai.api_key = get_settings().openai.key
             litellm.openai_key = get_settings().openai.key
@@ -97,6 +97,19 @@ class LiteLLMAIHandler(BaseAiHandler):
         if get_settings().get("DEEPINFRA.KEY", None):
             os.environ['DEEPINFRA_API_KEY'] = get_settings().get("DEEPINFRA.KEY")
 
+        # Check for Azure AD configuration
+        if get_settings().get("AZURE_AD.CLIENT_ID", None):
+            self.azure = True
+            # Generate access token using Azure AD credentials from settings
+            access_token = self._get_azure_ad_token()
+            litellm.api_key = access_token
+            openai.api_key = access_token
+            
+            # Set API base from settings
+            self.api_base = get_settings().azure_ad.api_base
+            litellm.api_base = self.api_base
+            openai.api_base = self.api_base
+
         # Models that only use user meessage
         self.user_message_only_models = USER_MESSAGE_ONLY_MODELS
 
@@ -109,6 +122,26 @@ class LiteLLMAIHandler(BaseAiHandler):
         # Models that support extended thinking
         self.claude_extended_thinking_models = CLAUDE_EXTENDED_THINKING_MODELS
 
+    def _get_azure_ad_token(self):
+        """
+        Generates an access token using Azure AD credentials from settings.
+        Returns:
+            str: The access token
+        """
+        from azure.identity import ClientSecretCredential
+        try:
+            credential = ClientSecretCredential(
+                tenant_id=get_settings().azure_ad.tenant_id,
+                client_id=get_settings().azure_ad.client_id,
+                client_secret=get_settings().azure_ad.client_secret
+            )
+            # Get token for Azure OpenAI service
+            token = credential.get_token("https://cognitiveservices.azure.com/.default")
+            return token.token
+        except Exception as e:
+            get_logger().error(f"Failed to get Azure AD token: {e}")
+            raise
+
     def prepare_logs(self, response, system, user, resp, finish_reason):
         response_log = response.dict().copy()
         response_log['system'] = system
diff --git a/pr_agent/settings/.secrets_template.toml b/pr_agent/settings/.secrets_template.toml
index f1bb30d4..05f7bc0e 100644
--- a/pr_agent/settings/.secrets_template.toml
+++ b/pr_agent/settings/.secrets_template.toml
@@ -101,3 +101,10 @@ key = ""
 
 [deepinfra]
 key = ""
+
+[azure_ad]
+# Azure AD authentication for OpenAI services
+client_id = ""  # Your Azure AD application client ID
+client_secret = ""  # Your Azure AD application client secret
+tenant_id = ""  # Your Azure AD tenant ID
+api_base = ""  # Your Azure OpenAI service base URL (e.g., https://openai.xyz.com/)
\ No newline at end of file