diff --git a/sdk/identity/identity/src/credentials/authFileCredential.browser.ts b/sdk/identity/identity/src/credentials/authFileCredential.browser.ts
new file mode 100644
index 000000000000..1beddee741e7
--- /dev/null
+++ b/sdk/identity/identity/src/credentials/authFileCredential.browser.ts
@@ -0,0 +1,19 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+/* eslint-disable @typescript-eslint/no-unused-vars */
+
+import { AccessToken, TokenCredential, GetTokenOptions } from "@azure/core-http";
+import { TokenCredentialOptions } from "../client/identityClient";
+
+const BrowserNotSupportedError = new Error("AuthFileCredential is not supported in the browser.");
+
+export class AuthFileCredential implements TokenCredential {
+  constructor(options?: TokenCredentialOptions) {
+    throw BrowserNotSupportedError;
+  }
+
+  getToken(scopes: string | string[], options?: GetTokenOptions): Promise<AccessToken | null> {
+    throw BrowserNotSupportedError;
+  }
+}
diff --git a/sdk/identity/identity/src/credentials/authFileCredential.ts b/sdk/identity/identity/src/credentials/authFileCredential.ts
new file mode 100644
index 000000000000..586b332954f8
--- /dev/null
+++ b/sdk/identity/identity/src/credentials/authFileCredential.ts
@@ -0,0 +1,107 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+import { AccessToken, TokenCredential, GetTokenOptions } from "@azure/core-http";
+import { createSpan } from "../util/tracing";
+import { AuthenticationErrorName } from "../client/errors";
+import { CanonicalCode } from "@opentelemetry/types";
+import { ClientCertificateCredential } from "./clientCertificateCredential";
+import * as fs from "fs";
+
+/**
+ * Enables authentication to Azure Active Directory using client secret
+ * details configured in the following environment variables:
+ *
+ * - AZURE_TENANT_ID: The Azure Active Directory tenant (directory) ID.
+ * - AZURE_CLIENT_ID: The client (application) ID of an App Registration in the tenant.
+ * - AZURE_CLIENT_SECRET: A client secret that was generated for the App Registration.
+ *
+ * This credential ultimately uses a {@link ClientSecretCredential} to
+ * perform the authentication using these details.  Please consult the
+ * documentation of that class for more details.
+ */
+export class AuthFileCredential implements TokenCredential {
+  private credential?: TokenCredential = undefined;
+  private filePath: string;
+  /**
+   * Creates an instance of the authFileCredential class.
+   *
+   * @param filePath The path to the SDK Auth file.
+   * @param options Options for configuring the client which makes the authentication request.
+   */
+  constructor(filePath: string) {
+    this.filePath = filePath;
+  }
+
+  /**
+   * Authenticates with Azure Active Directory and returns an access token if
+   * successful.  If authentication cannot be performed at this time, this method may
+   * return null.
+   *
+   * @param scopes The list of scopes for which the token will have access.
+   * @param options The options used to configure any requests this
+   *                TokenCredential implementation might make.
+   */
+  async getToken(
+    scopes: string | string[],
+    options?: GetTokenOptions
+  ): Promise<AccessToken | null> {
+    const { span, options: newOptions } = createSpan("authFileCredential-getToken", options);
+    if (this.credential) {
+      try {
+        await this.ensureCredential();
+        return await this.credential.getToken(scopes, newOptions);
+      } catch (err) {
+        const code =
+          err.name === AuthenticationErrorName
+            ? CanonicalCode.UNAUTHENTICATED
+            : CanonicalCode.UNKNOWN;
+        span.setStatus({
+          code,
+          message: err.message
+        });
+        return null;
+      } finally {
+        span.end();
+      }
+    }
+
+    // If by this point we don't have a credential, throw an exception so that
+    // the user knows the credential was not configured appropriately
+    span.setStatus({ code: CanonicalCode.UNAUTHENTICATED });
+    span.end();
+  }
+
+  async ensureCredential() {
+    if (this.credential == null) {
+      try {
+        let authData = JSON.parse(fs.readFileSync(this.filePath).toString());
+        await this.buildCredentialForCredentialFile(authData);
+      } catch (err) {
+        throw new Error("error parsing SDK Auth File");
+      }
+    }
+  }
+
+  async buildCredentialForCredentialFile(authData: any) {
+    if (this.credential == null && typeof authData == "object") {
+      let clientId = authData["clientId"];
+      let certificatePath = authData["certificatePath"];
+      let tenantId = authData["tenantId"];
+      let activeDirectoryEndpointUrl = authData["activeDirectoryEndpointUrl"];
+
+      if (
+        clientId == undefined ||
+        certificatePath == undefined ||
+        tenantId == undefined ||
+        activeDirectoryEndpointUrl == undefined
+      ) {
+        throw new Error("there was a problem building the credential.");
+      }
+
+      this.credential = new ClientCertificateCredential(tenantId, clientId, certificatePath, {
+        authorityHost: activeDirectoryEndpointUrl
+      });
+    }
+  }
+}
diff --git a/sdk/identity/identity/src/credentials/environmentCredential.ts b/sdk/identity/identity/src/credentials/environmentCredential.ts
index e9966e1bf1bc..aedec16b2b03 100644
--- a/sdk/identity/identity/src/credentials/environmentCredential.ts
+++ b/sdk/identity/identity/src/credentials/environmentCredential.ts
@@ -10,6 +10,7 @@ import { CanonicalCode } from "@opentelemetry/types";
 import { logger } from "../util/logging";
 import { ClientCertificateCredential } from "./clientCertificateCredential";
 import { UsernamePasswordCredential } from "./usernamePasswordCredential";
+import { AuthFileCredential } from "./authFileCredential";
 
 /**
  * Contains the list of all supported environment variable names so that an
@@ -96,6 +97,11 @@ export class EnvironmentCredential implements TokenCredential {
         options
       );
     }
+
+    const sdkAuthLocation = process.env.SdkAuthLocation;
+    if (sdkAuthLocation) {
+      this._credential = new AuthFileCredential(sdkAuthLocation);
+    }
   }
 
   /**
diff --git a/sdk/identity/identity/src/index.ts b/sdk/identity/identity/src/index.ts
index 35976a2e6a27..52425de5ba06 100644
--- a/sdk/identity/identity/src/index.ts
+++ b/sdk/identity/identity/src/index.ts
@@ -7,6 +7,7 @@ import { DefaultAzureCredential } from "./credentials/defaultAzureCredential";
 export { ChainedTokenCredential } from "./credentials/chainedTokenCredential";
 export { TokenCredentialOptions } from "./client/identityClient";
 export { EnvironmentCredential } from "./credentials/environmentCredential";
+export { AuthFileCredential } from "./credentials/authFileCredential";
 export { ClientSecretCredential } from "./credentials/clientSecretCredential";
 export { ClientCertificateCredential } from "./credentials/clientCertificateCredential";
 export { InteractiveBrowserCredential } from "./credentials/interactiveBrowserCredential";
diff --git a/sdk/identity/identity/test/node/authFileCredential.spec.ts b/sdk/identity/identity/test/node/authFileCredential.spec.ts
new file mode 100644
index 000000000000..01a1283288c1
--- /dev/null
+++ b/sdk/identity/identity/test/node/authFileCredential.spec.ts
@@ -0,0 +1,16 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+import assert from "assert";
+import { AuthFileCredential } from "../../src";
+
+describe("throw an error when use the incorrect file path ", function() {
+  it("use incorrect file path will throw an error when getting token", async () => {
+    let credential = new AuthFileCredential("Bougs*File*Path");
+    try {
+      await credential.getToken("https://mock.scope/.default/");
+    } catch (error) {
+      assert.equal(error.message, "Error parsing SDK Auth File");
+    }
+  });
+});