diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 123b19f4b4..658470b9d9 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -77,7 +77,6 @@ export const selectConnectionRadioButtonsTitle = localize('selectconnectionRadio
 export const dataSourceDropdownTitle = localize('dataSourceDropdownTitle', "Data source");
 export const noDataSourcesText = localize('noDataSourcesText', "No data sources in this project");
 export const loadProfileButtonText = localize('loadProfileButtonText', "Load Profile...");
-export const profileWarningText = localize('profileWarningText', "⚠ Warning: Connection strings using AAD Authentication are not supported at this time");
 export const profileReadError = localize('profileReadError', "Could not load the profile file.");
 export const sqlCmdTableLabel = localize('sqlCmdTableLabel', "SQLCMD Variables");
 export const sqlCmdVariableColumn = localize('sqlCmdVariableColumn', "Variable");
@@ -197,9 +196,16 @@ export const targetConnectionString = 'TargetConnectionString';
 export const initialCatalogSetting = 'Initial Catalog';
 export const dataSourceSetting = 'Data Source';
 export const integratedSecuritySetting = 'Integrated Security';
+export const authenticationSetting = 'Authentication';
+export const activeDirectoryInteractive = 'active directory interactive';
 export const userIdSetting = 'User ID';
 export const passwordSetting = 'Password';
 
+// Authentication types
+export const integratedAuth = 'Integrated';
+export const azureMfaAuth = 'AzureMFA';
+export const sqlAuth = 'SqlAuth';
+
 // Tree item types
 export enum DatabaseProjectItemType {
 	project = 'databaseProject.itemType.project',
diff --git a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
index 9eec789798..a0b5ba9b9f 100644
--- a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
@@ -122,7 +122,7 @@ export class PublishDatabaseDialog {
 						title: constants.targetDatabaseSettings,
 						components: [
 							{
-								title: constants.profileWarningText,
+								title: '',
 								component: <azdata.ButtonComponent>this.loadProfileButton
 							},
 							/* TODO : enable using this when data source creation is enabled
diff --git a/extensions/sql-database-projects/src/models/dataSources/sqlConnectionStringSource.ts b/extensions/sql-database-projects/src/models/dataSources/sqlConnectionStringSource.ts
index 669da9cd36..2c139266a3 100644
--- a/extensions/sql-database-projects/src/models/dataSources/sqlConnectionStringSource.ts
+++ b/extensions/sql-database-projects/src/models/dataSources/sqlConnectionStringSource.ts
@@ -35,7 +35,21 @@ export class SqlConnectionDataSource extends DataSource {
 	}
 
 	public get integratedSecurity(): boolean {
-		return this.getSetting(constants.integratedSecuritySetting).toLowerCase() === 'true';
+		return this.getSetting(constants.integratedSecuritySetting)?.toLowerCase() === 'true';
+	}
+
+	public get azureMFA(): boolean {
+		return this.getSetting(constants.authenticationSetting)?.toLowerCase().includes(constants.activeDirectoryInteractive);
+	}
+
+	public get authType(): string {
+		if (this.azureMFA) {
+			return constants.azureMfaAuth;
+		} else if (this.integratedSecurity) {
+			return constants.integratedAuth;
+		} else {
+			return constants.sqlAuth;
+		}
 	}
 
 	public get username(): string {
@@ -79,7 +93,7 @@ export class SqlConnectionDataSource extends DataSource {
 			connectionName: this.name,
 			userName: this.username,
 			password: this.password,
-			authenticationType: this.integratedSecurity ? 'Integrated' : 'SqlAuth',
+			authenticationType: this.authType,
 			savePassword: false,
 			providerName: 'MSSQL',
 			saveProfile: true,
diff --git a/extensions/sql-database-projects/src/test/baselines/openDataSourcesBaseline.json b/extensions/sql-database-projects/src/test/baselines/openDataSourcesBaseline.json
index 21d0f34f10..96c925f4f1 100644
--- a/extensions/sql-database-projects/src/test/baselines/openDataSourcesBaseline.json
+++ b/extensions/sql-database-projects/src/test/baselines/openDataSourcesBaseline.json
@@ -16,6 +16,14 @@
             "data": {
                 "connectionString": "Data Source=.;Initial Catalog=testDb2;Integrated Security=False"
             }
+        },
+        {
+            "name": "AAD Interactive Data Source",
+            "type": "sql_connection_string",
+            "version": "0.0.0",
+            "data": {
+                "connectionString": "Data Source=.;Initial Catalog=testDb3;Authentication='Active Directory Interactive'"
+            }
         }
     ]
 }
diff --git a/extensions/sql-database-projects/src/test/datasource.test.ts b/extensions/sql-database-projects/src/test/datasource.test.ts
index f666ddc413..8aac591ba4 100644
--- a/extensions/sql-database-projects/src/test/datasource.test.ts
+++ b/extensions/sql-database-projects/src/test/datasource.test.ts
@@ -18,7 +18,7 @@ describe.skip('Data Sources: DataSource operations', function (): void {
 		const dataSourcePath = await testUtils.createTestDataSources(baselines.openDataSourcesBaseline);
 		const dataSourceList = await dataSources.load(dataSourcePath);
 
-		should(dataSourceList.length).equal(2);
+		should(dataSourceList.length).equal(3);
 
 		should(dataSourceList[0].name).equal('Test Data Source 1');
 		should(dataSourceList[0].type).equal(sql.SqlConnectionDataSource.type);
@@ -26,5 +26,9 @@ describe.skip('Data Sources: DataSource operations', function (): void {
 
 		should(dataSourceList[1].name).equal('My Other Data Source');
 		should((dataSourceList[1] as sql.SqlConnectionDataSource).integratedSecurity).equal(false);
+
+		should(dataSourceList[2].name).equal('AAD Interactive Data Source');
+		should((dataSourceList[2] as sql.SqlConnectionDataSource).integratedSecurity).equal(false);
+		should((dataSourceList[2] as sql.SqlConnectionDataSource).azureMFA).equal(true);
 	});
 });
diff --git a/extensions/sql-database-projects/src/test/projectController.test.ts b/extensions/sql-database-projects/src/test/projectController.test.ts
index 42738256e1..6c3d3ba76c 100644
--- a/extensions/sql-database-projects/src/test/projectController.test.ts
+++ b/extensions/sql-database-projects/src/test/projectController.test.ts
@@ -84,7 +84,7 @@ describe('ProjectsController', function (): void {
 				const project = await projController.openProject(vscode.Uri.file(sqlProjPath));
 
 				should(project.files.length).equal(9); // detailed sqlproj tests in their own test file
-				should(project.dataSources.length).equal(2); // detailed datasources tests in their own test file
+				should(project.dataSources.length).equal(3); // detailed datasources tests in their own test file
 			});
 
 			it('Should load both project and referenced project', async function (): Promise<void> {