diff --git a/cpp/src/arrow/filesystem/azurefs.cc b/cpp/src/arrow/filesystem/azurefs.cc
index 21788536408..dd267aac36d 100644
--- a/cpp/src/arrow/filesystem/azurefs.cc
+++ b/cpp/src/arrow/filesystem/azurefs.cc
@@ -18,6 +18,7 @@
 #include "arrow/filesystem/azurefs.h"
 #include "arrow/filesystem/azurefs_internal.h"
 
+#include <azure/identity.hpp>
 #include <azure/storage/blobs.hpp>
 #include <azure/storage/files/datalake.hpp>
 
@@ -61,6 +62,8 @@ bool AzureOptions::Equals(const AzureOptions& other) const {
   switch (credential_kind_) {
     case CredentialKind::kAnonymous:
       return true;
+    case CredentialKind::kTokenCredential:
+      return token_credential_ == other.token_credential_;
     case CredentialKind::kStorageSharedKeyCredential:
       return storage_shared_key_credential_->AccountName ==
              other.storage_shared_key_credential_->AccountName;
@@ -69,8 +72,7 @@ bool AzureOptions::Equals(const AzureOptions& other) const {
   return false;
 }
 
-Status AzureOptions::ConfigureAccountKeyCredential(const std::string& account_name,
-                                                   const std::string& account_key) {
+void AzureOptions::SetUrlsForAccountName(const std::string& account_name) {
   if (this->backend == AzureBackend::kAzurite) {
     account_blob_url_ = "http://127.0.0.1:10000/" + account_name + "/";
     account_dfs_url_ = "http://127.0.0.1:10000/" + account_name + "/";
@@ -78,6 +80,18 @@ Status AzureOptions::ConfigureAccountKeyCredential(const std::string& account_na
     account_dfs_url_ = "https://" + account_name + ".dfs.core.windows.net/";
     account_blob_url_ = "https://" + account_name + ".blob.core.windows.net/";
   }
+}
+
+Status AzureOptions::ConfigureDefaultCredential(const std::string& account_name) {
+  AzureOptions::SetUrlsForAccountName(account_name);
+  credential_kind_ = CredentialKind::kTokenCredential;
+  token_credential_ = std::make_shared<Azure::Identity::DefaultAzureCredential>();
+  return Status::OK();
+}
+
+Status AzureOptions::ConfigureAccountKeyCredential(const std::string& account_name,
+                                                   const std::string& account_key) {
+  AzureOptions::SetUrlsForAccountName(account_name);
   credential_kind_ = CredentialKind::kStorageSharedKeyCredential;
   storage_shared_key_credential_ =
       std::make_shared<Storage::StorageSharedKeyCredential>(account_name, account_key);
@@ -89,6 +103,9 @@ Result<std::unique_ptr<Blobs::BlobServiceClient>> AzureOptions::MakeBlobServiceC
   switch (credential_kind_) {
     case CredentialKind::kAnonymous:
       break;
+    case CredentialKind::kTokenCredential:
+      return std::make_unique<Blobs::BlobServiceClient>(account_blob_url_,
+                                                        token_credential_);
     case CredentialKind::kStorageSharedKeyCredential:
       return std::make_unique<Blobs::BlobServiceClient>(account_blob_url_,
                                                         storage_shared_key_credential_);
@@ -101,6 +118,9 @@ AzureOptions::MakeDataLakeServiceClient() const {
   switch (credential_kind_) {
     case CredentialKind::kAnonymous:
       break;
+    case CredentialKind::kTokenCredential:
+      return std::make_unique<DataLake::DataLakeServiceClient>(account_dfs_url_,
+                                                               token_credential_);
     case CredentialKind::kStorageSharedKeyCredential:
       return std::make_unique<DataLake::DataLakeServiceClient>(
           account_dfs_url_, storage_shared_key_credential_);
diff --git a/cpp/src/arrow/filesystem/azurefs.h b/cpp/src/arrow/filesystem/azurefs.h
index 1266aa2d02b..b2c7010ff37 100644
--- a/cpp/src/arrow/filesystem/azurefs.h
+++ b/cpp/src/arrow/filesystem/azurefs.h
@@ -70,16 +70,23 @@ struct ARROW_EXPORT AzureOptions {
 
   enum class CredentialKind {
     kAnonymous,
+    kTokenCredential,
     kStorageSharedKeyCredential,
   } credential_kind_ = CredentialKind::kAnonymous;
 
   std::shared_ptr<Azure::Storage::StorageSharedKeyCredential>
       storage_shared_key_credential_;
 
+  std::shared_ptr<Azure::Core::Credentials::TokenCredential> token_credential_;
+
+  void SetUrlsForAccountName(const std::string& account_name);
+
  public:
   AzureOptions();
   ~AzureOptions();
 
+  Status ConfigureDefaultCredential(const std::string& account_name);
+
   Status ConfigureAccountKeyCredential(const std::string& account_name,
                                        const std::string& account_key);
 
diff --git a/cpp/src/arrow/filesystem/azurefs_test.cc b/cpp/src/arrow/filesystem/azurefs_test.cc
index 463ff4e8daf..799f3992a22 100644
--- a/cpp/src/arrow/filesystem/azurefs_test.cc
+++ b/cpp/src/arrow/filesystem/azurefs_test.cc
@@ -43,9 +43,6 @@
 #include <gmock/gmock-matchers.h>
 #include <gmock/gmock-more-matchers.h>
 #include <gtest/gtest.h>
-#include <azure/identity/client_secret_credential.hpp>
-#include <azure/identity/default_azure_credential.hpp>
-#include <azure/identity/managed_identity_credential.hpp>
 #include <azure/storage/blobs.hpp>
 #include <azure/storage/common/storage_credential.hpp>
 #include <azure/storage/files/datalake.hpp>
@@ -266,15 +263,12 @@ class AzureHierarchicalNSEnv : public AzureEnvImpl<AzureHierarchicalNSEnv> {
   bool WithHierarchicalNamespace() const final { return true; }
 };
 
-// Placeholder tests
-// TODO: GH-18014 Remove once a proper test is added
-TEST(AzureFileSystem, InitializeCredentials) {
-  auto default_credential = std::make_shared<Azure::Identity::DefaultAzureCredential>();
-  auto managed_identity_credential =
-      std::make_shared<Azure::Identity::ManagedIdentityCredential>();
-  auto service_principal_credential =
-      std::make_shared<Azure::Identity::ClientSecretCredential>("tenant_id", "client_id",
-                                                                "client_secret");
+TEST(AzureFileSystem, InitializeFilesystemWithDefaultCredential) {
+  AzureOptions options;
+  options.backend = AzureBackend::kAzurite;  // Irrelevant for this test because it
+                                             // doesn't connect to the server.
+  ARROW_EXPECT_OK(options.ConfigureDefaultCredential("dummy-account-name"));
+  EXPECT_OK_AND_ASSIGN(auto default_credential_fs, AzureFileSystem::Make(options));
 }
 
 TEST(AzureFileSystem, OptionsCompare) {