diff --git a/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/async_challenge_auth_policy.py b/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/async_challenge_auth_policy.py
index 1a872f36b6a83..17cd0674e8942 100644
--- a/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/async_challenge_auth_policy.py
+++ b/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/async_challenge_auth_policy.py
@@ -53,9 +53,11 @@ async def on_request(self, request: PipelineRequest) -> None:
                 scope = challenge.get_scope() or challenge.get_resource() + "/.default"
                 # Exclude tenant for AD FS authentication
                 if challenge.tenant_id and challenge.tenant_id.lower().endswith("adfs"):
-                    self._token = await self._credential.get_token(scope)
+                    self._token = await self._credential.get_token(scope, claims=challenge.claims)
                 else:
-                    self._token = await self._credential.get_token(scope, tenant_id=challenge.tenant_id)
+                    self._token = await self._credential.get_token(
+                        scope, claims=challenge.claims, tenant_id=challenge.tenant_id
+                    )
 
             # ignore mypy's warning -- although self._token is Optional, get_token raises when it fails to get a token
             request.http_request.headers["Authorization"] = f"Bearer {self._token.token}"  # type: ignore
@@ -104,9 +106,9 @@ async def on_challenge(self, request: PipelineRequest, response: PipelineRespons
         # The tenant parsed from AD FS challenges is "adfs"; we don't actually need a tenant for AD FS authentication
         # For AD FS we skip cross-tenant authentication per https://github.com/Azure/azure-sdk-for-python/issues/28648
         if challenge.tenant_id and challenge.tenant_id.lower().endswith("adfs"):
-            await self.authorize_request(request, scope)
+            await self.authorize_request(request, scope, claims=challenge.claims)
         else:
-            await self.authorize_request(request, scope, tenant_id=challenge.tenant_id)
+            await self.authorize_request(request, scope, claims=challenge.claims, tenant_id=challenge.tenant_id)
 
         return True
 
diff --git a/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/challenge_auth_policy.py b/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/challenge_auth_policy.py
index f16297aa50263..b9858736b13d2 100644
--- a/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/challenge_auth_policy.py
+++ b/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/challenge_auth_policy.py
@@ -82,9 +82,11 @@ def on_request(self, request: PipelineRequest) -> None:
                 scope = challenge.get_scope() or challenge.get_resource() + "/.default"
                 # Exclude tenant for AD FS authentication
                 if challenge.tenant_id and challenge.tenant_id.lower().endswith("adfs"):
-                    self._token = self._credential.get_token(scope)
+                    self._token = self._credential.get_token(scope, claims=challenge.claims)
                 else:
-                    self._token = self._credential.get_token(scope, tenant_id=challenge.tenant_id)
+                    self._token = self._credential.get_token(
+                        scope, claims=challenge.claims, tenant_id=challenge.tenant_id
+                    )
 
             # ignore mypy's warning -- although self._token is Optional, get_token raises when it fails to get a token
             request.http_request.headers["Authorization"] = f"Bearer {self._token.token}"  # type: ignore
@@ -132,9 +134,9 @@ def on_challenge(self, request: PipelineRequest, response: PipelineResponse) ->
         # The tenant parsed from AD FS challenges is "adfs"; we don't actually need a tenant for AD FS authentication
         # For AD FS we skip cross-tenant authentication per https://github.com/Azure/azure-sdk-for-python/issues/28648
         if challenge.tenant_id and challenge.tenant_id.lower().endswith("adfs"):
-            self.authorize_request(request, scope)
+            self.authorize_request(request, scope, claims=challenge.claims)
         else:
-            self.authorize_request(request, scope, tenant_id=challenge.tenant_id)
+            self.authorize_request(request, scope, claims=challenge.claims, tenant_id=challenge.tenant_id)
 
         return True
 
diff --git a/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/http_challenge.py b/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/http_challenge.py
index df9055c7bda6a..62427ec1372ac 100644
--- a/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/http_challenge.py
+++ b/sdk/keyvault/azure-keyvault-keys/azure/keyvault/keys/_shared/http_challenge.py
@@ -2,6 +2,7 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 # ------------------------------------
+import base64
 from typing import Dict, MutableMapping, Optional
 from urllib import parse
 
@@ -18,7 +19,13 @@ class HttpChallenge(object):
     def __init__(
         self, request_uri: str, challenge: str, response_headers: "Optional[MutableMapping[str, str]]" = None
     ) -> None:
-        """Parses an HTTP WWW-Authentication Bearer challenge from a server."""
+        """Parses an HTTP WWW-Authentication Bearer challenge from a server.
+
+        Example challenge with claims:
+            Bearer authorization="https://login.windows-ppe.net/", error="invalid_token",
+            error_description="User session has been revoked",
+            claims="eyJhY2Nlc3NfdG9rZW4iOnsibmJmIjp7ImVzc2VudGlhbCI6dHJ1ZSwgInZhbHVlIjoiMTYwMzc0MjgwMCJ9fX0="
+        """
         self.source_authority = self._validate_request_uri(request_uri)
         self.source_uri = request_uri
         self._parameters: "Dict[str, str]" = {}
@@ -29,16 +36,32 @@ def __init__(
         self.scheme = split_challenge[0]
         trimmed_challenge = split_challenge[1]
 
+        self.claims = None
+        encoded_claims = None
         # split trimmed challenge into comma-separated name=value pairs. Values are expected
         # to be surrounded by quotes which are stripped here.
         for item in trimmed_challenge.split(","):
+            # special case for claims, which can contain = symbols as padding
+            if "claims=" in item:
+                if encoded_claims:
+                    # multiple claims challenges, e.g. for cross-tenant auth, would require special handling
+                    # we can't support this scenario for now, so we ignore claims altogether if there are multiple
+                    self.claims = None
+                encoded_claims = item[item.index("=") + 1 :].strip(" \"'")
+                padding_needed = -len(encoded_claims) % 4
+                try:
+                    decoded_claims = base64.urlsafe_b64decode(encoded_claims + "=" * padding_needed).decode()
+                    self.claims = decoded_claims
+                except Exception:
+                    continue
             # process name=value pairs
-            comps = item.split("=")
-            if len(comps) == 2:
-                key = comps[0].strip(' "')
-                value = comps[1].strip(' "')
-                if key:
-                    self._parameters[key] = value
+            else:
+                comps = item.split("=")
+                if len(comps) == 2:
+                    key = comps[0].strip(' "')
+                    value = comps[1].strip(' "')
+                    if key:
+                        self._parameters[key] = value
 
         # minimum set of parameters
         if not self._parameters: