diff --git a/tools/props/Versions.props b/tools/props/Versions.props
index b9a5cb84d7..6ed4d95faf 100644
--- a/tools/props/Versions.props
+++ b/tools/props/Versions.props
@@ -24,7 +24,7 @@
   </PropertyGroup>
   <!-- NetFx and NetCore project dependencies -->
   <PropertyGroup>
-    <AzureIdentityVersion>1.7.0</AzureIdentityVersion>
+    <AzureIdentityVersion>1.8.0</AzureIdentityVersion>
     <MicrosoftIdentityClientVersion>4.47.2</MicrosoftIdentityClientVersion>
     <MicrosoftIdentityModelProtocolsOpenIdConnectVersion>6.24.0</MicrosoftIdentityModelProtocolsOpenIdConnectVersion>
     <MicrosoftIdentityModelJsonWebTokensVersion>6.24.0</MicrosoftIdentityModelJsonWebTokensVersion>
diff --git a/tools/specs/Microsoft.Data.SqlClient.nuspec b/tools/specs/Microsoft.Data.SqlClient.nuspec
index 0c56f9f8c4..aded7d902a 100644
--- a/tools/specs/Microsoft.Data.SqlClient.nuspec
+++ b/tools/specs/Microsoft.Data.SqlClient.nuspec
@@ -29,7 +29,7 @@ When using NuGet 3.x this package requires at least version 3.4.</description>
     <dependencies>
       <group targetFramework="net462">
         <dependency id="Microsoft.Data.SqlClient.SNI" version="5.1.0" />
-        <dependency id="Azure.Identity" version="1.7.0" />
+        <dependency id="Azure.Identity" version="1.8.0" />
         <dependency id="Microsoft.Identity.Client" version="4.47.2" />
         <dependency id="Microsoft.IdentityModel.JsonWebTokens" version="6.24.0" />
         <dependency id="Microsoft.IdentityModel.Protocols.OpenIdConnect" version="6.24.0" />
@@ -40,7 +40,7 @@ When using NuGet 3.x this package requires at least version 3.4.</description>
       </group>
       <group targetFramework="net6.0">
         <dependency id="Microsoft.Data.SqlClient.SNI.runtime" version="5.1.0" exclude="Compile" />
-        <dependency id="Azure.Identity" version="1.7.0" />
+        <dependency id="Azure.Identity" version="1.8.0" />
         <dependency id="Microsoft.Identity.Client" version="4.47.2" exclude="Compile"/>
         <dependency id="Microsoft.IdentityModel.Protocols.OpenIdConnect" version="6.24.0" />
         <dependency id="Microsoft.IdentityModel.JsonWebTokens" version="6.24.0" />
@@ -55,7 +55,7 @@ When using NuGet 3.x this package requires at least version 3.4.</description>
       </group>
       <group targetFramework="netstandard2.0">
         <dependency id="Microsoft.Data.SqlClient.SNI.runtime" version="5.1.0" exclude="Compile" />
-        <dependency id="Azure.Identity" version="1.7.0" />
+        <dependency id="Azure.Identity" version="1.8.0" />
         <dependency id="Microsoft.Identity.Client" version="4.47.2" exclude="Compile"/>
         <dependency id="Microsoft.IdentityModel.Protocols.OpenIdConnect" version="6.24.0" />
         <dependency id="Microsoft.IdentityModel.JsonWebTokens" version="6.24.0" />
@@ -72,7 +72,7 @@ When using NuGet 3.x this package requires at least version 3.4.</description>
       </group>
       <group targetFramework="netstandard2.1">
         <dependency id="Microsoft.Data.SqlClient.SNI.runtime" version="5.1.0" exclude="Compile" />
-        <dependency id="Azure.Identity" version="1.7.0" />
+        <dependency id="Azure.Identity" version="1.8.0" />
         <dependency id="Microsoft.Identity.Client" version="4.47.2" exclude="Compile"/>
         <dependency id="Microsoft.IdentityModel.Protocols.OpenIdConnect" version="6.24.0" />
         <dependency id="Microsoft.IdentityModel.JsonWebTokens" version="6.24.0" />