diff --git a/arc-azure-client/build.gradle.kts b/arc-azure-client/build.gradle.kts
index 2153e673..3dea5e1a 100644
--- a/arc-azure-client/build.gradle.kts
+++ b/arc-azure-client/build.gradle.kts
@@ -16,7 +16,7 @@ dependencies {
     // Azure
     api("com.azure:azure-ai-openai:1.0.0-beta.16")
     api("com.azure:azure-core-tracing-opentelemetry:1.0.0-beta.56")
-    implementation("com.azure:azure-identity:1.15.4")
+    implementation("com.azure:azure-identity:1.18.2")
 
     // Tests
     testImplementation(libs.slf4j.jdk14)
diff --git a/arc-spring-boot-starter/build.gradle.kts b/arc-spring-boot-starter/build.gradle.kts
index 5be34a03..847b2d25 100644
--- a/arc-spring-boot-starter/build.gradle.kts
+++ b/arc-spring-boot-starter/build.gradle.kts
@@ -14,7 +14,7 @@ dependencies {
     compileOnly(project(":arc-gen"))
 
     // Azure
-    compileOnly("com.azure:azure-identity:1.15.4")
+    compileOnly("com.azure:azure-identity:1.18.2")
 
     // MCP
     compileOnly(libs.spring.ai.starter.mcp.server.webflux)