diff --git a/extensions/kimai/CHANGELOG.md b/extensions/kimai/CHANGELOG.md
index a741a84c812..87e2b8c5b34 100644
--- a/extensions/kimai/CHANGELOG.md
+++ b/extensions/kimai/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Kimai Changelog
 
+## [Update] - 2024-05-18
+
+Added support for API token in the extension preferences.
+
 ## [Fix] - 2024-03-11
 
 Added validation of request response data to prevent breaking the extension if the data is not valid JSON.
diff --git a/extensions/kimai/README.md b/extensions/kimai/README.md
index 130f4b12f12..64e40ae6739 100644
--- a/extensions/kimai/README.md
+++ b/extensions/kimai/README.md
@@ -9,12 +9,11 @@ This [Raycast](https://raycast.com) extension lets you quickly add new time log
 
 ## Setup
 
-![setup](media/setup.png)
-
-To connect the extension to your Kimai instance you need to add the following settings.
+To connect the extension to your Kimai instance you need to add the following settings. There are 2 way to authorize your extension `API Token` or `Email & API Password`. `API Token` is recommended and both ways are not needed.
 
 - **Request protocol:** Protocol to be used to make API requests. If you are using local (self hosted) Kimai, set it to 'http', otherwise keep it as 'https'.
 - **Kimai Domain:** The domain of your Kimai instance like `your-organization.kimai.cloud`.
+- **API Token:** Recommended for use in extension. You can find it in your `API Access` settings.
 - **Email:** Email you use to login into Kimai
 - **API Password:** Password different from password you use to login into Kimai. You need to create it in your `API Access` settings.
 - **Default time log duration (in minutes):** Duration that will be used to prepopulate duration field when adding new time log
@@ -23,5 +22,5 @@ You can find your settings by going to `https://{your-organization}.kimai.cloud/
 
 1. Open Kimai dashboard
 2. Click on your username
-3. Open `Password`
-4. Open `API Access`
+3. Open `API Access`
+4. Click on `+ Create` to create new token
diff --git a/extensions/kimai/media/setup.png b/extensions/kimai/media/setup.png
deleted file mode 100644
index 090caff1007..00000000000
Binary files a/extensions/kimai/media/setup.png and /dev/null differ
diff --git a/extensions/kimai/package.json b/extensions/kimai/package.json
index b58210abf59..ffeca32e08f 100644
--- a/extensions/kimai/package.json
+++ b/extensions/kimai/package.json
@@ -57,17 +57,24 @@
     {
       "name": "email",
       "type": "textfield",
-      "required": true,
+      "required": false,
       "title": "Email",
       "description": "Your email that you use for login in Kimai"
     },
     {
       "name": "password",
+      "required": false,
       "type": "password",
-      "required": true,
       "title": "API Password",
       "description": "API password is different from your login password and needs to set in your profile settings"
     },
+    {
+      "name": "token",
+      "type": "textfield",
+      "required": false,
+      "title": "API Token",
+      "description": "API token available in your profile settings"
+    },
     {
       "name": "duration",
       "type": "textfield",
@@ -99,4 +106,4 @@
     "pull": "npx @raycast/api@latest pull-contributions",
     "publish": "npx @raycast/api@latest publish"
   }
-}
+}
\ No newline at end of file
diff --git a/extensions/kimai/src/libs/api.ts b/extensions/kimai/src/libs/api.ts
index 1c7e98c5587..4bec1d146a0 100644
--- a/extensions/kimai/src/libs/api.ts
+++ b/extensions/kimai/src/libs/api.ts
@@ -47,15 +47,16 @@ const activitySchema = z.object({
 });
 
 const fetch = async (apiPath: string, init?: RequestInit | undefined) => {
-  const { domain, email, password, protocol: _protocol } = getPreferences();
+  const { domain, email, password, protocol: _protocol, token } = getPreferences();
   const protocol = _protocol || "https";
 
   const response = await nodeFetch(`${protocol}://${domain}/api/${apiPath}`, {
     ...(init || {}),
     headers: {
       "Content-Type": "application/json",
-      "X-AUTH-USER": email,
-      "X-AUTH-TOKEN": password,
+      ...(token ? { Authorization: `Bearer ${token}` } : {}),
+      ...(!token && email ? { "X-AUTH-USER": email } : {}),
+      ...(!token && password ? { "X-AUTH-TOKEN": password } : {}),
       ...(init?.headers || {}),
     },
   });
diff --git a/extensions/kimai/src/libs/preferences.ts b/extensions/kimai/src/libs/preferences.ts
index 5ad2a380878..87475f1471c 100644
--- a/extensions/kimai/src/libs/preferences.ts
+++ b/extensions/kimai/src/libs/preferences.ts
@@ -2,8 +2,9 @@ import { getPreferenceValues } from "@raycast/api";
 
 interface Preferences {
   domain: string;
-  password: string;
-  email: string;
+  password?: string;
+  email?: string;
+  token?: string;
   protocol?: "https" | "http";
   duration: string;
 }
diff --git a/extensions/kimai/src/log-time.tsx b/extensions/kimai/src/log-time.tsx
index b3d8830b597..d04a0bce7e2 100644
--- a/extensions/kimai/src/log-time.tsx
+++ b/extensions/kimai/src/log-time.tsx
@@ -1,8 +1,11 @@
 import {
   Action,
   ActionPanel,
+  Color,
   Form,
+  Icon,
   LaunchType,
+  List,
   PopToRootType,
   Toast,
   launchCommand,
@@ -27,8 +30,9 @@ interface FormValues {
 const DATE_FORMAT = "YYYY-MM-DDTHH:mm:ss";
 
 const LogTimeCommand = () => {
-  const { duration } = getPreferences();
+  const { duration, email, password, token } = getPreferences();
   const initialDuration = parseInt(duration);
+  const validPreferences = Boolean((email && password) || token);
   const { isLoading: isLoadingProjects, projects, visitItem: visitProject } = useProjects();
   const { isLoading: isLoadingActivities, activities, visitItem: visitActivity } = useActivities();
 
@@ -90,6 +94,17 @@ const LogTimeCommand = () => {
     },
   });
 
+  if (!validPreferences) {
+    return (
+      <List>
+        <List.EmptyView
+          icon={{ source: Icon.Warning, tintColor: Color.Orange }}
+          title="Please set your API token or your email and password in the preferences"
+        />
+      </List>
+    );
+  }
+
   return (
     <Form
       isLoading={isLoadingProjects || isLoadingActivities}