diff --git a/pkg/sqlcmd/connect.go b/pkg/sqlcmd/connect.go
index a1304e81..e2fde19f 100644
--- a/pkg/sqlcmd/connect.go
+++ b/pkg/sqlcmd/connect.go
@@ -88,7 +88,7 @@ func (connect ConnectSettings) RequiresPassword() bool {
 	requiresPassword := connect.sqlAuthentication()
 	if !requiresPassword {
 		switch connect.authenticationMethod() {
-		case azuread.ActiveDirectoryApplication, azuread.ActiveDirectoryPassword, azuread.ActiveDirectoryServicePrincipal:
+		case azuread.ActiveDirectoryApplication, azuread.ActiveDirectoryPassword, azuread.ActiveDirectoryServicePrincipal, azuread.ActiveDirectoryServicePrincipalAccessToken:
 			requiresPassword = true
 		}
 	}
@@ -125,7 +125,7 @@ func (connect ConnectSettings) ConnectionString() (connectionString string, err
 		Path:   instance,
 	}
 
-	if connect.sqlAuthentication() || connect.authenticationMethod() == azuread.ActiveDirectoryPassword || connect.authenticationMethod() == azuread.ActiveDirectoryServicePrincipal || connect.authenticationMethod() == azuread.ActiveDirectoryApplication {
+	if connect.sqlAuthentication() || connect.authenticationMethod() == azuread.ActiveDirectoryPassword || connect.authenticationMethod() == azuread.ActiveDirectoryServicePrincipal || connect.authenticationMethod() == azuread.ActiveDirectoryApplication || connect.authenticationMethod() == azuread.ActiveDirectoryServicePrincipalAccessToken {
 		connectionURL.User = url.UserPassword(connect.UserName, connect.Password)
 	}
 	if (connect.authenticationMethod() == azuread.ActiveDirectoryMSI || connect.authenticationMethod() == azuread.ActiveDirectoryManagedIdentity) && connect.UserName != "" {
diff --git a/pkg/sqlcmd/connect_test.go b/pkg/sqlcmd/connect_test.go
new file mode 100644
index 00000000..5dd20119
--- /dev/null
+++ b/pkg/sqlcmd/connect_test.go
@@ -0,0 +1,181 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT license.
+
+package sqlcmd
+
+import (
+	"fmt"
+	"strings"
+	"testing"
+
+	"github.com/google/uuid"
+	"github.com/microsoft/go-mssqldb/azuread"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestConnectionStringIncludesPasswordForAuthMethods(t *testing.T) {
+	authMethodsRequiringPassword := []string{
+		azuread.ActiveDirectoryPassword,
+		azuread.ActiveDirectoryServicePrincipal,
+		azuread.ActiveDirectoryApplication,
+		azuread.ActiveDirectoryServicePrincipalAccessToken,
+	}
+
+	pwd := uuid.New().String()
+
+	for _, method := range authMethodsRequiringPassword {
+		t.Run(method, func(t *testing.T) {
+			settings := ConnectSettings{
+				ServerName:           "someserver",
+				AuthenticationMethod: method,
+				UserName:             "myapp@mytenant",
+				Password:             pwd,
+			}
+
+			connectionString, err := settings.ConnectionString()
+			if assert.NoError(t, err) {
+				expected := fmt.Sprintf("sqlserver://myapp%%40mytenant:%s@someserver", pwd)
+				assert.Equal(t, expected, connectionString,
+					"auth method %q should include user:password in the connection URL", method)
+			}
+		})
+	}
+}
+
+func TestConnectionStringExcludesPasswordForNonCredentialAuthMethods(t *testing.T) {
+	authMethodsWithoutPassword := []string{
+		azuread.ActiveDirectoryDefault,
+		azuread.ActiveDirectoryIntegrated,
+		azuread.ActiveDirectoryInteractive,
+		azuread.ActiveDirectoryDeviceCode,
+		azuread.ActiveDirectoryAzCli,
+		azuread.ActiveDirectoryAzureDeveloperCli,
+		azuread.ActiveDirectoryAzurePipelines,
+		azuread.ActiveDirectoryEnvironment,
+		azuread.ActiveDirectoryWorkloadIdentity,
+		azuread.ActiveDirectoryClientAssertion,
+		azuread.ActiveDirectoryOnBehalfOf,
+	}
+
+	pwd := uuid.New().String()
+
+	for _, method := range authMethodsWithoutPassword {
+		t.Run(method, func(t *testing.T) {
+			settings := ConnectSettings{
+				ServerName:           "someserver",
+				AuthenticationMethod: method,
+				UserName:             "myapp@mytenant",
+				Password:             pwd,
+			}
+
+			connectionString, err := settings.ConnectionString()
+			if assert.NoError(t, err) {
+				assert.False(t, strings.Contains(connectionString, pwd),
+					"auth method %q should not include password in the connection URL", method)
+			}
+		})
+	}
+}
+
+func TestConnectionStringIncludesPasswordForManagedIdentityWithUserName(t *testing.T) {
+	managedIdentityMethods := []string{
+		azuread.ActiveDirectoryMSI,
+		azuread.ActiveDirectoryManagedIdentity,
+	}
+
+	pwd := uuid.New().String()
+
+	for _, method := range managedIdentityMethods {
+		t.Run(method+"_with_username", func(t *testing.T) {
+			settings := ConnectSettings{
+				ServerName:           "someserver",
+				AuthenticationMethod: method,
+				UserName:             "myclientid",
+				Password:             pwd,
+			}
+
+			connectionString, err := settings.ConnectionString()
+			if assert.NoError(t, err) {
+				expected := fmt.Sprintf("sqlserver://myclientid:%s@someserver", pwd)
+				assert.Equal(t, expected, connectionString,
+					"auth method %q with UserName should include user:password in the connection URL", method)
+			}
+		})
+
+		t.Run(method+"_without_username", func(t *testing.T) {
+			settings := ConnectSettings{
+				ServerName:           "someserver",
+				AuthenticationMethod: method,
+				Password:             pwd,
+			}
+
+			connectionString, err := settings.ConnectionString()
+			if assert.NoError(t, err) {
+				assert.False(t, strings.Contains(connectionString, pwd),
+					"auth method %q without UserName should not include password in the connection URL", method)
+			}
+		})
+	}
+}
+
+func TestRequiresPassword(t *testing.T) {
+	methodsThatRequirePassword := []string{
+		azuread.ActiveDirectoryPassword,
+		azuread.ActiveDirectoryServicePrincipal,
+		azuread.ActiveDirectoryApplication,
+		azuread.ActiveDirectoryServicePrincipalAccessToken,
+	}
+
+	for _, method := range methodsThatRequirePassword {
+		t.Run(method+"_requires_password", func(t *testing.T) {
+			settings := ConnectSettings{
+				AuthenticationMethod: method,
+				UserName:             "someuser",
+			}
+			assert.True(t, settings.RequiresPassword(),
+				"auth method %q should require a password", method)
+		})
+	}
+
+	methodsThatDontRequirePassword := []string{
+		azuread.ActiveDirectoryDefault,
+		azuread.ActiveDirectoryIntegrated,
+		azuread.ActiveDirectoryInteractive,
+		azuread.ActiveDirectoryDeviceCode,
+		azuread.ActiveDirectoryAzCli,
+		azuread.ActiveDirectoryAzureDeveloperCli,
+		azuread.ActiveDirectoryAzurePipelines,
+		azuread.ActiveDirectoryEnvironment,
+		azuread.ActiveDirectoryWorkloadIdentity,
+		azuread.ActiveDirectoryClientAssertion,
+		azuread.ActiveDirectoryOnBehalfOf,
+		azuread.ActiveDirectoryMSI,
+		azuread.ActiveDirectoryManagedIdentity,
+	}
+
+	for _, method := range methodsThatDontRequirePassword {
+		t.Run(method+"_does_not_require_password", func(t *testing.T) {
+			settings := ConnectSettings{
+				AuthenticationMethod: method,
+				UserName:             "someuser",
+			}
+			assert.False(t, settings.RequiresPassword(),
+				"auth method %q should not require a password", method)
+		})
+	}
+}
+
+func TestConnectionStringIncludesPasswordForSqlAuth(t *testing.T) {
+	pwd := uuid.New().String()
+	settings := ConnectSettings{
+		ServerName: "someserver",
+		UserName:   "someuser",
+		Password:   pwd,
+	}
+
+	connectionString, err := settings.ConnectionString()
+	if assert.NoError(t, err) {
+		assert.True(t, strings.Contains(connectionString, pwd),
+			"SQL authentication should include password in the connection URL")
+	}
+}