diff --git a/sdk/keyvault/keyvault-common/CHANGELOG.md b/sdk/keyvault/keyvault-common/CHANGELOG.md
index 6487b537e5ac..790064388d41 100644
--- a/sdk/keyvault/keyvault-common/CHANGELOG.md
+++ b/sdk/keyvault/keyvault-common/CHANGELOG.md
@@ -4,6 +4,8 @@
 
 ### Features Added
 
+- Add support for Continuous Access Evaluation (CAE).
+
 ### Breaking Changes
 
 ### Bugs Fixed
diff --git a/sdk/keyvault/keyvault-common/package.json b/sdk/keyvault/keyvault-common/package.json
index bb1863edcc76..33b2c1dbb330 100644
--- a/sdk/keyvault/keyvault-common/package.json
+++ b/sdk/keyvault/keyvault-common/package.json
@@ -58,6 +58,7 @@
     "@azure/core-tracing": "^1.0.0",
     "@azure/core-auth": "^1.3.0",
     "@azure/abort-controller": "^2.0.0",
+    "@azure/logger": "^1.1.5",
     "tslib": "^2.2.0"
   },
   "devDependencies": {
diff --git a/sdk/keyvault/keyvault-common/src/challengeBasedAuthenticationPolicy.ts b/sdk/keyvault/keyvault-common/src/challengeBasedAuthenticationPolicy.ts
index 54f8eba7d07c..35a059032b4e 100644
--- a/sdk/keyvault/keyvault-common/src/challengeBasedAuthenticationPolicy.ts
+++ b/sdk/keyvault/keyvault-common/src/challengeBasedAuthenticationPolicy.ts
@@ -11,6 +11,7 @@ import {
 import { WWWAuthenticate, parseWWWAuthenticateHeader } from "./parseWWWAuthenticate.js";
 
 import { GetTokenOptions } from "@azure/core-auth";
+import { logger } from "./logger.js";
 
 /**
  * @internal
@@ -35,6 +36,7 @@ type ChallengeState =
   | {
       status: "complete";
       scopes: string[];
+      claims?: string;
     };
 
 /**
@@ -112,7 +114,11 @@ export function createKeyVaultChallengeCallbacks(
       case "started":
         break; // Retry, we should not overwrite the original body
       case "complete": {
-        const token = await getAccessToken(challengeState.scopes, requestOptions);
+        const token = await getAccessToken(challengeState.scopes, {
+          ...requestOptions,
+          enableCae: challengeState.claims !== undefined,
+          claims: challengeState.claims,
+        });
         if (token) {
           request.headers.set("authorization", `Bearer ${token.token}`);
         }
@@ -154,8 +160,19 @@ export function createKeyVaultChallengeCallbacks(
       verifyChallengeResource(scope, request);
     }
 
+    const { error, claims: base64EncodedClaims } = parsedChallenge;
+    let claims: string | undefined = undefined;
+    if (error) {
+      logger.verbose("Received error in WWW-Authenticate header:", error);
+      if (error === "insufficient_claims" && base64EncodedClaims) {
+        claims = atob(base64EncodedClaims);
+      }
+    }
+
     const accessToken = await getAccessToken([scope], {
       ...getTokenOptions,
+      enableCae: claims !== undefined,
+      claims,
       tenantId: parsedChallenge.tenantId,
     });
 
diff --git a/sdk/keyvault/keyvault-common/src/logger.ts b/sdk/keyvault/keyvault-common/src/logger.ts
new file mode 100644
index 000000000000..fddc58835663
--- /dev/null
+++ b/sdk/keyvault/keyvault-common/src/logger.ts
@@ -0,0 +1,6 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+import { createClientLogger } from "@azure/logger";
+
+export const logger = createClientLogger("keyvault-common");
diff --git a/sdk/keyvault/keyvault-common/src/parseWWWAuthenticate.ts b/sdk/keyvault/keyvault-common/src/parseWWWAuthenticate.ts
index 343d91a6fb23..1082ce3f6703 100644
--- a/sdk/keyvault/keyvault-common/src/parseWWWAuthenticate.ts
+++ b/sdk/keyvault/keyvault-common/src/parseWWWAuthenticate.ts
@@ -29,6 +29,16 @@ export interface WWWAuthenticate {
    * The tenantId parameter, if present.
    */
   tenantId?: string;
+
+  /**
+   * The claims parameter, if present.
+   */
+  claims?: string;
+
+  /**
+   * The error parameter, if present.
+   */
+  error?: string;
 }
 
 const validWWWAuthenticateProperties: readonly (keyof WWWAuthenticate)[] = [
@@ -37,6 +47,8 @@ const validWWWAuthenticateProperties: readonly (keyof WWWAuthenticate)[] = [
   "resource",
   "scope",
   "tenantId",
+  "claims",
+  "error",
 ] as const;
 
 /**
@@ -52,10 +64,10 @@ export function parseWWWAuthenticateHeader(headerValue: string): WWWAuthenticate
   const parsed = headerValue.split(pairDelimiter).reduce<WWWAuthenticate>((kvPairs, p) => {
     if (p.match(/\w="/)) {
       // 'sampleKey="sample_value"' -> [sampleKey, "sample_value"] -> { sampleKey: sample_value }
-      const [key, value] = p.split("=");
+      const [key, ...value] = p.split("=");
       if (validWWWAuthenticateProperties.includes(key as keyof WWWAuthenticate)) {
         // The values will be wrapped in quotes, which need to be stripped out.
-        return { ...kvPairs, [key]: value.slice(1, -1) };
+        return { ...kvPairs, [key]: value.join("=").slice(1, -1) };
       }
     }
     return kvPairs;
diff --git a/sdk/keyvault/keyvault-common/test/internal/challengeAuthenticationCallbacks.spec.ts b/sdk/keyvault/keyvault-common/test/internal/challengeAuthenticationCallbacks.spec.ts
index 1145edba04aa..ebe5556207f4 100644
--- a/sdk/keyvault/keyvault-common/test/internal/challengeAuthenticationCallbacks.spec.ts
+++ b/sdk/keyvault/keyvault-common/test/internal/challengeAuthenticationCallbacks.spec.ts
@@ -89,6 +89,45 @@ describe("Challenge based authentication tests", function () {
 
       expect(options.request.headers.get("authorization")).toBeUndefined();
     });
+
+    it("Handles insufficient claims", async () => {
+      const options: AuthorizeRequestOptions = {
+        getAccessToken: () => {
+          return Promise.resolve({ token: "access_token", expiresOnTimestamp: 1000 });
+        },
+        request: createPipelineRequest({
+          url: "https://foo.bar",
+          headers: createHttpHeaders({}),
+        }),
+        scopes: [],
+      };
+
+      let called = false;
+
+      await challengeCallbacks.authorizeRequestOnChallenge!({
+        getAccessToken: (scopes, getAccessTokenOptions) => {
+          expect(scopes).to.deep.equal(["https://vault.azure.net/.default"]);
+          expect(getAccessTokenOptions.claims).to.equal(`{"claim":"fooo"}`);
+          expect(getAccessTokenOptions.enableCae).toBeTruthy();
+          called = true;
+          return Promise.resolve({ token: "successful_token", expiresOnTimestamp: 999999999 });
+        },
+        request,
+        response: {
+          headers: createHttpHeaders({
+            "WWW-Authenticate": `Bearer resource="https://vault.azure.net" error="insufficient_claims" claims="eyJjbGFpbSI6ImZvb28ifQ=="`,
+          }),
+          request,
+          status: 401,
+        },
+        scopes: [],
+      });
+
+      await challengeCallbacks.authorizeRequest!(options);
+
+      expect(options.request.headers.get("authorization")).toEqual("Bearer access_token");
+      expect(called).toBeTruthy();
+    });
   });
 
   describe("authorizeRequestOnChallenge", () => {