diff --git a/docs/content/configuration.md b/docs/content/configuration.md
index 102561e14f..c2b92b75b9 100644
--- a/docs/content/configuration.md
+++ b/docs/content/configuration.md
@@ -535,17 +535,21 @@ When the given resource (the object in the GCS bucket) contains slashes (/) or o
 OPA will authenticate with an [Azure managed identities](https://docs.microsoft.com/en-us/azure/active-directory/managed-identities-azure-resources/overview) token.
 The [token request](https://docs.microsoft.com/en-us/azure/active-directory/managed-identities-azure-resources/how-to-use-vm-token#get-a-token-using-http)
 can be configured via the plugin to customize the base URL, API version, and resource. Specific managed identity IDs can be optionally provided as well.
+(The token request for [Azure App Service](https://learn.microsoft.com/en-us/azure/app-service/overview-managed-identity?tabs=portal%2Chttp#connect-to-azure-services-in-app-code) or
+[Azure Container Apps](https://learn.microsoft.com/en-us/azure/container-apps/managed-identity?tabs=bicep%2Chttp#connect-to-azure-services-in-app-code) is similar to above interface,
+but the endpoint and the header are different. Please see the individual documents for more details.)
 
 | Field | Type | Required | Description |
 | --- | --- | --- | --- |
-| `services[_].credentials.azure_managed_identity.endpoint` | `string` | No | Request endpoint. (default: `http://169.254.169.254/metadata/identity/oauth2/token`, the Azure Instance Metadata Service endpoint (recommended))|
-| `services[_].credentials.azure_managed_identity.api_version` | `string` | No | API version to use. (default: `2018-02-01`, the minimum version) |
+| `services[_].credentials.azure_managed_identity.endpoint` | `string` | No | Request endpoint. (Detect endpoint from IDENTITY_ENDPOINT environment variable when you use managed identity on Azure App Service or Container Apps. Otherwise set default: `http://169.254.169.254/metadata/identity/oauth2/token`, the Azure Instance Metadata Service endpoint (recommended))|
+| `services[_].credentials.azure_managed_identity.api_version` | `string` | No | API version to use. (default: `2019-08-01` when you use `IDENTITY_ENDPONT` endpoint, otherwise `2018-02-01`, the minimum version) |
 | `services[_].credentials.azure_managed_identity.resource` | `string` | No | App ID URI of the target resource. (default: `https://storage.azure.com/`) |
 | `services[_].credentials.azure_managed_identity.object_id` | `string` | No | Optional object ID of the managed identity you would like the token for. Required, if your VM has multiple user-assigned managed identities. |
 | `services[_].credentials.azure_managed_identity.client_id` | `string` | No | Optional client ID of the managed identity you would like the token for. Required, if your VM has multiple user-assigned managed identities. |
 | `services[_].credentials.azure_managed_identity.mi_res_id` | `string` | No | Optional Azure Resource ID of the managed identity you would like the token for. Required, if your VM has multiple user-assigned managed identities. |
+| `services[_].credentials.azure_managed_identity.use_app_service_msi` | `bool` | No | Set true if you would like to set `x-identity-header` instead of `Metadata` header for token request. Default: set true automatically when you use managed identity on Azure App Servic or Container Apps.  |
 
-The following is an example of how to use an [Azure storage
+The following is an example of how to use an [Azure storageß
 account](https://docs.microsoft.com/en-us/azure/storage/common/storage-account-overview)
 as a bundle service backend.
 
diff --git a/plugins/rest/azure.go b/plugins/rest/azure.go
index 6a85dea681..ae00d48a7c 100644
--- a/plugins/rest/azure.go
+++ b/plugins/rest/azure.go
@@ -7,14 +7,16 @@ import (
 	"io"
 	"net/http"
 	"net/url"
+	"os"
 	"time"
 )
 
 var (
-	azureIMDSEndpoint = "http://169.254.169.254/metadata/identity/oauth2/token"
-	defaultAPIVersion = "2018-02-01"
-	defaultResource   = "https://storage.azure.com/"
-	timeout           = 5 * time.Second
+	azureIMDSEndpoint                 = "http://169.254.169.254/metadata/identity/oauth2/token"
+	defaultAPIVersion                 = "2018-02-01"
+	defaultResource                   = "https://storage.azure.com/"
+	timeout                           = 5 * time.Second
+	defaultAPIVersionForAppServiceMsi = "2019-08-01"
 )
 
 // azureManagedIdentitiesToken holds a token for managed identities for Azure resources
@@ -41,12 +43,13 @@ func (e *azureManagedIdentitiesError) Error() string {
 
 // azureManagedIdentitiesAuthPlugin uses an azureManagedIdentitiesToken.AccessToken for bearer authorization
 type azureManagedIdentitiesAuthPlugin struct {
-	Endpoint   string `json:"endpoint"`
-	APIVersion string `json:"api_version"`
-	Resource   string `json:"resource"`
-	ObjectID   string `json:"object_id"`
-	ClientID   string `json:"client_id"`
-	MiResID    string `json:"mi_res_id"`
+	Endpoint         string `json:"endpoint"`
+	APIVersion       string `json:"api_version"`
+	Resource         string `json:"resource"`
+	ObjectID         string `json:"object_id"`
+	ClientID         string `json:"client_id"`
+	MiResID          string `json:"mi_res_id"`
+	UseAppServiceMsi bool   `json:"use_app_service_msi,omitempty"`
 }
 
 func (ap *azureManagedIdentitiesAuthPlugin) NewClient(c Config) (*http.Client, error) {
@@ -55,7 +58,13 @@ func (ap *azureManagedIdentitiesAuthPlugin) NewClient(c Config) (*http.Client, e
 	}
 
 	if ap.Endpoint == "" {
-		ap.Endpoint = azureIMDSEndpoint
+		identityEndpoint := os.Getenv("IDENTITY_ENDPOINT")
+		if identityEndpoint != "" {
+			ap.UseAppServiceMsi = true
+			ap.Endpoint = identityEndpoint
+		} else {
+			ap.Endpoint = azureIMDSEndpoint
+		}
 	}
 
 	if ap.Resource == "" {
@@ -63,7 +72,11 @@ func (ap *azureManagedIdentitiesAuthPlugin) NewClient(c Config) (*http.Client, e
 	}
 
 	if ap.APIVersion == "" {
-		ap.APIVersion = defaultAPIVersion
+		if ap.UseAppServiceMsi {
+			ap.APIVersion = defaultAPIVersionForAppServiceMsi
+		} else {
+			ap.APIVersion = defaultAPIVersion
+		}
 	}
 
 	t, err := DefaultTLSConfig(c)
@@ -78,6 +91,7 @@ func (ap *azureManagedIdentitiesAuthPlugin) Prepare(req *http.Request) error {
 	token, err := azureManagedIdentitiesTokenRequest(
 		ap.Endpoint, ap.APIVersion, ap.Resource,
 		ap.ObjectID, ap.ClientID, ap.MiResID,
+		ap.UseAppServiceMsi,
 	)
 	if err != nil {
 		return err
@@ -90,6 +104,7 @@ func (ap *azureManagedIdentitiesAuthPlugin) Prepare(req *http.Request) error {
 // azureManagedIdentitiesTokenRequest fetches an azureManagedIdentitiesToken
 func azureManagedIdentitiesTokenRequest(
 	endpoint, apiVersion, resource, objectID, clientID, miResID string,
+	useAppServiceMsi bool,
 ) (azureManagedIdentitiesToken, error) {
 	var token azureManagedIdentitiesToken
 	e := buildAzureManagedIdentitiesRequestPath(endpoint, apiVersion, resource, objectID, clientID, miResID)
@@ -98,7 +113,15 @@ func azureManagedIdentitiesTokenRequest(
 	if err != nil {
 		return token, err
 	}
-	request.Header.Add("Metadata", "true")
+	if useAppServiceMsi {
+		identityHeader := os.Getenv("IDENTITY_HEADER")
+		if identityHeader == "" {
+			return token, errors.New("azure managed identities auth: IDENTITY_HEADER env var not found")
+		}
+		request.Header.Add("x-identity-header", identityHeader)
+	} else {
+		request.Header.Add("Metadata", "true")
+	}
 
 	httpClient := http.Client{Timeout: timeout}
 	response, err := httpClient.Do(request)
diff --git a/plugins/rest/azure_test.go b/plugins/rest/azure_test.go
index f2ddeb1283..a949692d8a 100644
--- a/plugins/rest/azure_test.go
+++ b/plugins/rest/azure_test.go
@@ -25,7 +25,6 @@ func assertParamsEqual(t *testing.T, expected url.Values, actual url.Values, lab
 		t.Errorf("%s: expected %s, got %s", label, expected.Encode(), actual.Encode())
 	}
 }
-
 func TestAzureManagedIdentitiesAuthPlugin_NewClient(t *testing.T) {
 	tests := []struct {
 		label      string
@@ -79,6 +78,64 @@ func TestAzureManagedIdentitiesAuthPlugin_NewClient(t *testing.T) {
 	}
 }
 
+func TestAzureManagedIdentitiesAuthPluginForAppService_NewClient(t *testing.T) {
+	tests := []struct {
+		label      string
+		endpoint   string
+		apiVersion string
+		resource   string
+		objectID   string
+		clientID   string
+		miResID    string
+	}{
+		{
+			"test all defaults",
+			"", "", "", "", "", "",
+		},
+		{
+			"test no defaults",
+			"some_endpoint", "some_version", "some_resource", "some_oid", "some_cid", "some_miresid",
+		},
+	}
+
+	nonEmptyString := func(value string, defaultValue string) string {
+		if value == "" {
+			return defaultValue
+		}
+		return value
+	}
+
+	defaultIdentityEndpoint := "http://localhost:42356/msi/token"
+	defaultIdentityHeader := "IdentityHeader"
+	t.Setenv("IDENTITY_ENDPOINT", defaultIdentityEndpoint)
+	t.Setenv("IDENTITY_HEADER", defaultIdentityHeader)
+
+	for _, tt := range tests {
+		config := generateConfigString(tt.endpoint, tt.apiVersion, tt.resource, tt.objectID, tt.clientID, tt.miResID)
+
+		client, err := New([]byte(config), map[string]*keys.Config{})
+		if err != nil {
+			t.Fatalf("Unexpected error: %v", err)
+		}
+
+		ap := client.config.Credentials.AzureManagedIdentity
+		_, err = ap.NewClient(client.config)
+		if err != nil {
+			t.Fatalf("Unexpected error: %v", err)
+		}
+
+		// We test that default values are set correctly in the azureManagedIdentitiesAuthPlugin
+		// Note that there is significant overlap between TestAzureManagedIdentitiesAuthPlugin_NewClient and TestAzureManagedIdentitiesAuthPlugin
+		// This is because the latter cannot test default endpoint setting, which we do here
+		assertStringsEqual(t, nonEmptyString(tt.endpoint, defaultIdentityEndpoint), ap.Endpoint, tt.label)
+		assertStringsEqual(t, nonEmptyString(tt.apiVersion, defaultAPIVersionForAppServiceMsi), ap.APIVersion, tt.label)
+		assertStringsEqual(t, nonEmptyString(tt.resource, defaultResource), ap.Resource, tt.label)
+		assertStringsEqual(t, tt.objectID, ap.ObjectID, tt.label)
+		assertStringsEqual(t, tt.clientID, ap.ClientID, tt.label)
+		assertStringsEqual(t, tt.miResID, ap.MiResID, tt.label)
+	}
+}
+
 func TestAzureManagedIdentitiesAuthPlugin(t *testing.T) {
 	tests := []struct {
 		label          string