diff --git a/extensions/mssql/package.json b/extensions/mssql/package.json
index 3101268bbe..e2110a5712 100644
--- a/extensions/mssql/package.json
+++ b/extensions/mssql/package.json
@@ -421,7 +421,7 @@
         "mssql.enableSqlAuthenticationProvider": {
           "type": "boolean",
           "description": "%mssql.enableSqlAuthenticationProvider%",
-          "default": false
+          "default": true
         },
         "mssql.tableDesigner.preloadDatabaseModel": {
           "type": "boolean",
diff --git a/extensions/mssql/src/utils.ts b/extensions/mssql/src/utils.ts
index e4837b3132..62109f45c8 100644
--- a/extensions/mssql/src/utils.ts
+++ b/extensions/mssql/src/utils.ts
@@ -165,10 +165,10 @@ export function getAzureAuthenticationLibraryConfig(): string {
 export function getEnableSqlAuthenticationProviderConfig(): boolean {
 	const config = getConfiguration();
 	if (config) {
-		return config.get<boolean>(enableSqlAuthenticationProviderConfig, false); // disabled by default
+		return config.get<boolean>(enableSqlAuthenticationProviderConfig, true); // enabled by default
 	}
 	else {
-		return false;
+		return true;
 	}
 }