diff --git a/litellm/router_utils/client_initalization_utils.py b/litellm/router_utils/client_initalization_utils.py
index a2e06e2537..7956d8c72e 100644
--- a/litellm/router_utils/client_initalization_utils.py
+++ b/litellm/router_utils/client_initalization_utils.py
@@ -195,7 +195,8 @@ class InitalizeOpenAISDKClient:
                 organization = get_secret_str(organization_env_name)
                 litellm_params["organization"] = organization
             azure_ad_token_provider: Optional[Callable[[], str]] = None
-            if litellm_params.get("tenant_id"):
+            # If we have api_key, then we have higher priority
+            if not api_key and litellm_params.get("tenant_id"):
                 verbose_router_logger.debug(
                     "Using Azure AD Token Provider for Azure Auth"
                 )
@@ -232,7 +233,7 @@ class InitalizeOpenAISDKClient:
                     if azure_ad_token.startswith("oidc/"):
                         azure_ad_token = get_azure_ad_token_from_oidc(azure_ad_token)
                 elif (
-                    azure_ad_token_provider is None
+                     not api_key and azure_ad_token_provider is None
                     and litellm.enable_azure_ad_token_refresh is True
                 ):
                     try:
diff --git a/litellm/secret_managers/get_azure_ad_token_provider.py b/litellm/secret_managers/get_azure_ad_token_provider.py
index f8741115ca..2052f65e15 100644
--- a/litellm/secret_managers/get_azure_ad_token_provider.py
+++ b/litellm/secret_managers/get_azure_ad_token_provider.py
@@ -1,7 +1,5 @@
 import os
-from typing import Callable, Union
-
-from litellm._logging import verbose_logger
+from typing import Callable
 
 
 def get_azure_ad_token_provider() -> Callable[[], str]:
@@ -16,31 +14,23 @@ def get_azure_ad_token_provider() -> Callable[[], str]:
     Returns:
         Callable that returns a temporary authentication token.
     """
-    from azure.identity import (
-        ClientSecretCredential,
-        DefaultAzureCredential,
-        get_bearer_token_provider,
-    )
+    import azure.identity as identity
+    from azure.identity import get_bearer_token_provider
 
-    try:
-        credential: Union[ClientSecretCredential, DefaultAzureCredential] = (
-            ClientSecretCredential(
-                client_id=os.environ["AZURE_CLIENT_ID"],
-                client_secret=os.environ["AZURE_CLIENT_SECRET"],
-                tenant_id=os.environ["AZURE_TENANT_ID"],
-            )
-        )
-    except KeyError as e:
-        verbose_logger.exception(
-            "Missing environment variable required by Azure AD workflow. "
-            "DefaultAzureCredential will be used"
-            " {}".format(str(e))
-        )
-        credential = DefaultAzureCredential()
-    except Exception:
-        raise
-
-    return get_bearer_token_provider(
-        credential,
-        "https://cognitiveservices.azure.com/.default",
+    azure_scope = os.environ.get(
+        "AZURE_SCOPE", "https://cognitiveservices.azure.com/.default"
     )
+    cred = os.environ.get("AZURE_CREDENTIAL", "ClientSecretCredential")
+
+    cred_cls = getattr(identity, cred)
+    # ClientSecretCredential, DefaultAzureCredential, AzureCliCredential
+    if cred == "ClientSecretCredential":
+        credential = cred_cls(
+            client_id=os.environ["AZURE_CLIENT_ID"],
+            client_secret=os.environ["AZURE_CLIENT_SECRET"],
+            tenant_id=os.environ["AZURE_TENANT_ID"],
+        )
+    else:
+        credential = cred_cls()
+
+    return get_bearer_token_provider(credential, azure_scope)
diff --git a/tests/local_testing/test_router.py b/tests/local_testing/test_router.py
index 0f690a94f2..4deb589439 100644
--- a/tests/local_testing/test_router.py
+++ b/tests/local_testing/test_router.py
@@ -219,6 +219,38 @@ def test_router_azure_ai_client_init():
     assert not isinstance(_client, AsyncAzureOpenAI)
 
 
+def test_router_azure_ad_token_provider():
+    _deployment = {
+        "model_name": "gpt-4o_2024-05-13",
+        "litellm_params": {
+            "model": "azure/gpt-4o_2024-05-13",
+            "api_base": "my-fake-route",
+            "api_version": "2024-08-01-preview",
+        },
+        "model_info": {"id": "1234"},
+    }
+    for azure_cred in ["DefaultAzureCredential", "AzureCliCredential"]:
+        os.environ["AZURE_CREDENTIAL"] = azure_cred
+        litellm.enable_azure_ad_token_refresh = True
+        router = Router(model_list=[_deployment])
+
+        _client = router._get_client(
+            deployment=_deployment,
+            client_type="async",
+            kwargs={"stream": False},
+        )
+        print(_client)
+        import azure.identity as identity
+        from openai import AsyncAzureOpenAI, AsyncOpenAI
+
+        assert isinstance(_client, AsyncOpenAI)
+        assert isinstance(_client, AsyncAzureOpenAI)
+        assert _client._azure_ad_token_provider is not None
+        assert isinstance(_client._azure_ad_token_provider.__closure__, tuple)
+        assert isinstance(_client._azure_ad_token_provider.__closure__[0].cell_contents._credential,
+                        getattr(identity, os.environ["AZURE_CREDENTIAL"]))
+
+
 def test_router_sensitive_keys():
     try:
         router = Router(