diff --git a/extensions/azurecore/src/account-provider/utils/msalCachePlugin.ts b/extensions/azurecore/src/account-provider/utils/msalCachePlugin.ts
index 46005ce7c4..19a8765747 100644
--- a/extensions/azurecore/src/account-provider/utils/msalCachePlugin.ts
+++ b/extensions/azurecore/src/account-provider/utils/msalCachePlugin.ts
@@ -116,14 +116,15 @@ export class MsalCachePluginProvider {
 	 */
 	public async writeTokenToLocalCache(token: Token): Promise<void> {
 		let updateCount = 0;
+		let indexToUpdate = -1;
 		let cache: LocalAccountCache;
 		cache = JSON.parse(await this.readCache(this._localCacheConfiguration)) as LocalAccountCache;
 		if (cache?.tokens) {
-			cache.tokens.forEach(t => {
+			cache.tokens.forEach((t, i) => {
 				if (t.key === token.key && t.tenantId === token.tenantId && t.resource === token.resource
 				) {
 					// Update token
-					t = token;
+					indexToUpdate = i;
 					updateCount++;
 				}
 			});
@@ -139,6 +140,9 @@ export class MsalCachePluginProvider {
 		}
 
 		if (updateCount === 1) {
+			if (indexToUpdate !== -1) {
+				cache.tokens[indexToUpdate] = token;
+			}
 			await this.writeCache(JSON.stringify(cache), this._localCacheConfiguration);
 		}
 		else {
diff --git a/src/sql/platform/connection/common/constants.ts b/src/sql/platform/connection/common/constants.ts
index 5419e89a7c..b6fc242f2f 100644
--- a/src/sql/platform/connection/common/constants.ts
+++ b/src/sql/platform/connection/common/constants.ts
@@ -22,6 +22,9 @@ export const defaultEngine = 'defaultEngine';
 
 export const passwordChars = '***************';
 
+export const enableSqlAuthenticationProviderConfig = 'mssql.enableSqlAuthenticationProvider';
+
+
 /* default authentication type setting name*/
 export const defaultAuthenticationType = 'defaultAuthenticationType';
 
diff --git a/src/sql/platform/connection/common/utils.ts b/src/sql/platform/connection/common/utils.ts
index d5888f5ce1..9f0ed7ce54 100644
--- a/src/sql/platform/connection/common/utils.ts
+++ b/src/sql/platform/connection/common/utils.ts
@@ -6,7 +6,7 @@
 import { IConnectionProfile } from 'sql/platform/connection/common/interfaces';
 import { ConnectionProfile } from 'sql/platform/connection/common/connectionProfile';
 import { ConnectionProfileGroup } from 'sql/platform/connection/common/connectionProfileGroup';
-import * as sqlExtHostTypes from 'sql/workbench/api/common/sqlExtHostTypes'
+import * as sqlExtHostTypes from 'sql/workbench/api/common/sqlExtHostTypes';
 
 // CONSTANTS //////////////////////////////////////////////////////////////////////////////////////
 const msInH = 3.6e6;
diff --git a/src/sql/workbench/services/connection/browser/connectionManagementService.ts b/src/sql/workbench/services/connection/browser/connectionManagementService.ts
index 1f8ecb6e8a..d1c5f2e5fc 100644
--- a/src/sql/workbench/services/connection/browser/connectionManagementService.ts
+++ b/src/sql/workbench/services/connection/browser/connectionManagementService.ts
@@ -57,6 +57,7 @@ import { VIEWLET_ID as ExtensionsViewletID } from 'vs/workbench/contrib/extensio
 import { IDialogService } from 'vs/platform/dialogs/common/dialogs';
 import { IErrorDiagnosticsService } from 'sql/workbench/services/diagnostics/common/errorDiagnosticsService';
 import { PasswordChangeDialog } from 'sql/workbench/services/connection/browser/passwordChangeDialog';
+import { enableSqlAuthenticationProviderConfig, mssqlProviderName } from 'sql/platform/connection/common/constants';
 
 export class ConnectionManagementService extends Disposable implements IConnectionManagementService {
 
@@ -1141,6 +1142,12 @@ export class ConnectionManagementService extends Disposable implements IConnecti
 
 		// We expect connectionProfile to be defined
 		if (connectionProfile && connectionProfile.authenticationType === Constants.AuthenticationType.AzureMFA) {
+			// We do not need to reconnect for MSSQL Provider, if 'SQL Authentication Provider' setting is enabled.
+			// Update the token in case it needs refreshing/reauthentication.
+			if (connectionProfile.providerName === mssqlProviderName && this.getEnableSqlAuthenticationProviderConfig()) {
+				await this.fillInOrClearToken(connectionProfile);
+				return true;
+			}
 			const expiry = connectionProfile.options.expiresOn;
 			if (typeof expiry === 'number' && !Number.isNaN(expiry)) {
 				const currentTime = new Date().getTime() / 1000;
@@ -1172,8 +1179,13 @@ export class ConnectionManagementService extends Disposable implements IConnecti
 			}
 			return true;
 		}
-		else
+		else {
 			return false;
+		}
+	}
+
+	private getEnableSqlAuthenticationProviderConfig(): boolean {
+		return this._configurationService.getValue(enableSqlAuthenticationProviderConfig) ?? true;
 	}
 
 	// Request Senders
@@ -1598,10 +1610,9 @@ export class ConnectionManagementService extends Disposable implements IConnecti
 	}
 
 	public async listDatabases(connectionUri: string): Promise<azdata.ListDatabasesResult | undefined> {
-		const self = this;
 		await this.refreshAzureAccountTokenIfNecessary(connectionUri);
-		if (self.isConnected(connectionUri)) {
-			return self.sendListDatabasesRequest(connectionUri);
+		if (this.isConnected(connectionUri)) {
+			return this.sendListDatabasesRequest(connectionUri);
 		}
 		return Promise.resolve(undefined);
 	}