diff --git a/docs/reference/providers/provider-ad.md b/docs/reference/providers/provider-ad.md
index fd78eda6..27424def 100644
--- a/docs/reference/providers/provider-ad.md
+++ b/docs/reference/providers/provider-ad.md
@@ -441,6 +441,66 @@ The provider supports multiple identifier formats and resolves them deterministi
 
 ---
 
+## CreateIdentity Derivation Behavior
+
+When creating identities with `CreateIdentity()` (or `IdLE.Step.CreateIdentity`), the AD provider implements smart defaults to reduce boilerplate and improve workflow usability:
+
+### 1. SamAccountName Derivation
+
+**If `Attributes.SamAccountName` is missing or empty:**
+
+- When `IdentityKey` is **SamAccountName-like** (no `@`, not a GUID):
+  - **Derives** `SamAccountName = IdentityKey`
+  - Example: `IdentityKey='jdoe'` → `SamAccountName='jdoe'`
+  
+- When `IdentityKey` is a **UPN** (contains `@`):
+  - **Fails fast** with a clear error requiring explicit `SamAccountName`
+  - Rationale: Automatic truncation/sanitization introduces org-specific policy decisions and collision risks
+  
+- When `IdentityKey` is a **GUID**:
+  - **Fails fast** with a clear error requiring explicit `SamAccountName`
+  - Rationale: GUIDs are not valid SamAccountNames
+
+**Explicit values are never overridden:** If `Attributes.SamAccountName` is provided, it is always used as-is.
+
+### 2. UserPrincipalName Auto-Set
+
+**If `IdentityKey` is a UPN and `Attributes.UserPrincipalName` is missing or empty:**
+
+- **Auto-sets** `UserPrincipalName = IdentityKey`
+- Example: `IdentityKey='john.doe@contoso.com'` → `UserPrincipalName='john.doe@contoso.com'`
+
+**Explicit values are never overridden:** If `Attributes.UserPrincipalName` is provided, it is always used as-is.
+
+### 3. CN/RDN Name Derivation
+
+The AD object's Common Name (CN/RDN, used in the DistinguishedName) is derived using this priority order:
+
+1. **`Attributes.Name`** (explicit CN/RDN)
+2. **`Attributes.DisplayName`**
+3. **`GivenName + Surname`** (if both are present)
+4. **`IdentityKey`** (fallback)
+
+**Example:**
+```powershell
+# IdentityKey='jdoe', GivenName='John', Surname='Doe', DisplayName='John Doe'
+# → CN/RDN = 'John Doe' (from DisplayName)
+
+# IdentityKey='jdoe', GivenName='John', Surname='Doe'
+# → CN/RDN = 'John Doe' (from GivenName+Surname)
+
+# IdentityKey='jdoe'
+# → CN/RDN = 'jdoe' (fallback to IdentityKey)
+```
+
+**Verbose logging:** All derivations emit `Write-Verbose` messages for observability.
+
+### 4. Path Pass-Through
+
+**`Attributes.Path`** is always passed through to `New-ADUser -Path` when provided. No derivation or defaulting occurs at the provider level.
+
+---
+
 ## Entitlement Model
 
 Active Directory entitlements use:
@@ -468,7 +528,7 @@ The following built-in steps in `IdLE.Steps.Common` work with the AD provider:
 - **IdLE.Step.DisableIdentity** - Disable user accounts
 - **IdLE.Step.EnableIdentity** - Enable user accounts
 - **IdLE.Step.MoveIdentity** - Move users between OUs
-- **IdLE.Step.DeleteIdentity** - Delete user accounts (requires `IdLE.Identity.Delete` capability)
+- **IdLE.Step.DeleteIdentity** - Delete user accounts (requires provider initialization with `-AllowDelete` switch)
 - **IdLE.Step.EnsureAttribute** - Set/update user attributes
 - **IdLE.Step.EnsureEntitlement** - Manage group memberships
 
@@ -507,6 +567,8 @@ $result = Invoke-IdlePlan -Plan $plan -Providers $providers
           GivenName = 'John'
           Surname = 'Doe'
           UserPrincipalName = 'jdoe@contoso.local'
+          # SamAccountName is automatically derived from IdentityKey ('jdoe')
+          # CN/RDN Name will be derived from GivenName+Surname ('John Doe')
         }
         AuthSessionName = 'ActiveDirectory'
         AuthSessionOptions = @{ Role = 'Admin' }
@@ -516,6 +578,32 @@ $result = Invoke-IdlePlan -Plan $plan -Providers $providers
 }
 ```
 
+### Example with UPN IdentityKey
+
+```powershell
+@{
+  Steps = @(
+    @{
+      Name = 'CreateUserWithUPN'
+      Type = 'IdLE.Step.CreateIdentity'
+      With = @{
+        Provider = 'Identity'
+        IdentityKey = 'john.doe@contoso.com'
+        Attributes = @{
+          SamAccountName = 'jdoe'  # Required when IdentityKey is UPN
+          GivenName = 'John'
+          Surname = 'Doe'
+          DisplayName = 'John Doe'
+          # UserPrincipalName is automatically set from IdentityKey
+          # CN/RDN Name will be 'John Doe' (from DisplayName)
+        }
+        AuthSessionName = 'ActiveDirectory'
+      }
+    }
+  )
+}
+```
+
 ### Complete example workflows
 
 Complete example workflows are available in the repository:
diff --git a/src/IdLE.Provider.AD/Private/New-IdleADAdapter.ps1 b/src/IdLE.Provider.AD/Private/New-IdleADAdapter.ps1
index d01070a4..c420d11a 100644
--- a/src/IdLE.Provider.AD/Private/New-IdleADAdapter.ps1
+++ b/src/IdLE.Provider.AD/Private/New-IdleADAdapter.ps1
@@ -130,7 +130,7 @@ function New-IdleADAdapter {
         param(
             [Parameter(Mandatory)]
             [ValidateNotNullOrEmpty()]
-            [string] $Name,
+            [string] $IdentityKey,
 
             [Parameter(Mandatory)]
             [ValidateNotNull()]
@@ -140,53 +140,118 @@ function New-IdleADAdapter {
             [bool] $Enabled = $true
         )
 
+        # Create a local copy of Attributes to avoid mutating the caller's hashtable
+        $effectiveAttributes = $Attributes.Clone()
+
+        # Classify IdentityKey: GUID, UPN, or SamAccountName-like
+        $isGuid = $false
+        $isUpn = $false
+        $isSamAccountNameLike = $false
+
+        $guid = [System.Guid]::Empty
+        if ([System.Guid]::TryParse($IdentityKey, [ref]$guid)) {
+            $isGuid = $true
+        }
+        elseif ($IdentityKey -match '@') {
+            $isUpn = $true
+        }
+        else {
+            $isSamAccountNameLike = $true
+        }
+
+        # 1. Derive SamAccountName from IdentityKey if missing
+        $hasSamAccountName = $effectiveAttributes.ContainsKey('SamAccountName') -and -not [string]::IsNullOrWhiteSpace($effectiveAttributes['SamAccountName'])
+        
+        if (-not $hasSamAccountName) {
+            if ($isSamAccountNameLike) {
+                $effectiveAttributes['SamAccountName'] = $IdentityKey
+                Write-Verbose "AD Provider: Derived SamAccountName='$IdentityKey' from IdentityKey (SamAccountName-like)"
+            }
+            elseif ($isUpn) {
+                throw "SamAccountName is required when IdentityKey is a UPN. IdentityKey='$IdentityKey' appears to be a UPN (contains '@'). Please provide an explicit 'SamAccountName' in Attributes."
+            }
+            elseif ($isGuid) {
+                throw "SamAccountName is required when IdentityKey is a GUID. IdentityKey='$IdentityKey' is a GUID. Please provide an explicit 'SamAccountName' in Attributes."
+            }
+        }
+
+        # 2. Auto-set UserPrincipalName when IdentityKey is a UPN
+        $hasUpn = $effectiveAttributes.ContainsKey('UserPrincipalName') -and -not [string]::IsNullOrWhiteSpace($effectiveAttributes['UserPrincipalName'])
+        
+        if (-not $hasUpn -and $isUpn) {
+            $effectiveAttributes['UserPrincipalName'] = $IdentityKey
+            Write-Verbose "AD Provider: Derived UserPrincipalName='$IdentityKey' from IdentityKey (UPN format)"
+        }
+
+        # 3. Derive CN/RDN Name with priority: Name > DisplayName > GivenName+Surname > IdentityKey
+        $derivedName = $null
+        $hasExplicitName = $effectiveAttributes.ContainsKey('Name') -and -not [string]::IsNullOrWhiteSpace($effectiveAttributes['Name'])
+        
+        if ($hasExplicitName) {
+            $derivedName = $effectiveAttributes['Name']
+            Write-Verbose "AD Provider: Using explicit Name='$derivedName' for CN/RDN"
+        }
+        elseif ($effectiveAttributes.ContainsKey('DisplayName') -and -not [string]::IsNullOrWhiteSpace($effectiveAttributes['DisplayName'])) {
+            $derivedName = $effectiveAttributes['DisplayName']
+            Write-Verbose "AD Provider: Derived CN/RDN Name='$derivedName' from DisplayName"
+        }
+        elseif ($effectiveAttributes.ContainsKey('GivenName') -and -not [string]::IsNullOrWhiteSpace($effectiveAttributes['GivenName']) -and 
+                $effectiveAttributes.ContainsKey('Surname') -and -not [string]::IsNullOrWhiteSpace($effectiveAttributes['Surname'])) {
+            $derivedName = "$($effectiveAttributes['GivenName']) $($effectiveAttributes['Surname'])"
+            Write-Verbose "AD Provider: Derived CN/RDN Name='$derivedName' from GivenName+Surname"
+        }
+        else {
+            $derivedName = $IdentityKey
+            Write-Verbose "AD Provider: Falling back to IdentityKey='$derivedName' for CN/RDN Name (no DisplayName or GivenName+Surname provided)"
+        }
+
         $params = @{
-            Name        = $Name
+            Name        = $derivedName
             Enabled     = $Enabled
             ErrorAction = 'Stop'
         }
 
-        if ($Attributes.ContainsKey('SamAccountName')) {
-            $params['SamAccountName'] = $Attributes['SamAccountName']
+        if ($effectiveAttributes.ContainsKey('SamAccountName')) {
+            $params['SamAccountName'] = $effectiveAttributes['SamAccountName']
         }
-        if ($Attributes.ContainsKey('UserPrincipalName')) {
-            $params['UserPrincipalName'] = $Attributes['UserPrincipalName']
+        if ($effectiveAttributes.ContainsKey('UserPrincipalName')) {
+            $params['UserPrincipalName'] = $effectiveAttributes['UserPrincipalName']
         }
-        if ($Attributes.ContainsKey('Path')) {
-            $params['Path'] = $Attributes['Path']
+        if ($effectiveAttributes.ContainsKey('Path')) {
+            $params['Path'] = $effectiveAttributes['Path']
         }
-        if ($Attributes.ContainsKey('GivenName')) {
-            $params['GivenName'] = $Attributes['GivenName']
+        if ($effectiveAttributes.ContainsKey('GivenName')) {
+            $params['GivenName'] = $effectiveAttributes['GivenName']
         }
-        if ($Attributes.ContainsKey('Surname')) {
-            $params['Surname'] = $Attributes['Surname']
+        if ($effectiveAttributes.ContainsKey('Surname')) {
+            $params['Surname'] = $effectiveAttributes['Surname']
         }
-        if ($Attributes.ContainsKey('DisplayName')) {
-            $params['DisplayName'] = $Attributes['DisplayName']
+        if ($effectiveAttributes.ContainsKey('DisplayName')) {
+            $params['DisplayName'] = $effectiveAttributes['DisplayName']
         }
-        if ($Attributes.ContainsKey('Description')) {
-            $params['Description'] = $Attributes['Description']
+        if ($effectiveAttributes.ContainsKey('Description')) {
+            $params['Description'] = $effectiveAttributes['Description']
         }
-        if ($Attributes.ContainsKey('Department')) {
-            $params['Department'] = $Attributes['Department']
+        if ($effectiveAttributes.ContainsKey('Department')) {
+            $params['Department'] = $effectiveAttributes['Department']
         }
-        if ($Attributes.ContainsKey('Title')) {
-            $params['Title'] = $Attributes['Title']
+        if ($effectiveAttributes.ContainsKey('Title')) {
+            $params['Title'] = $effectiveAttributes['Title']
         }
-        if ($Attributes.ContainsKey('EmailAddress')) {
-            $params['EmailAddress'] = $Attributes['EmailAddress']
+        if ($effectiveAttributes.ContainsKey('EmailAddress')) {
+            $params['EmailAddress'] = $effectiveAttributes['EmailAddress']
         }
 
         # Password handling: support SecureString, ProtectedString, and explicit PlainText
-        $hasAccountPassword = $Attributes.ContainsKey('AccountPassword')
-        $hasAccountPasswordAsPlainText = $Attributes.ContainsKey('AccountPasswordAsPlainText')
+        $hasAccountPassword = $effectiveAttributes.ContainsKey('AccountPassword')
+        $hasAccountPasswordAsPlainText = $effectiveAttributes.ContainsKey('AccountPasswordAsPlainText')
 
         if ($hasAccountPassword -and $hasAccountPasswordAsPlainText) {
             throw "Ambiguous password configuration: both 'AccountPassword' and 'AccountPasswordAsPlainText' are provided. Use only one."
         }
 
         if ($hasAccountPassword) {
-            $passwordValue = $Attributes['AccountPassword']
+            $passwordValue = $effectiveAttributes['AccountPassword']
 
             if ($null -eq $passwordValue) {
                 throw "AccountPassword: Value cannot be null. Provide a SecureString or ProtectedString (from ConvertFrom-SecureString)."
@@ -220,7 +285,7 @@ function New-IdleADAdapter {
         }
 
         if ($hasAccountPasswordAsPlainText) {
-            $plainTextPassword = $Attributes['AccountPasswordAsPlainText']
+            $plainTextPassword = $effectiveAttributes['AccountPasswordAsPlainText']
 
             if ($null -eq $plainTextPassword) {
                 throw "AccountPasswordAsPlainText: Value cannot be null. Provide a non-empty plaintext password string."
diff --git a/tests/Providers/ADIdentityProvider.Tests.ps1 b/tests/Providers/ADIdentityProvider.Tests.ps1
index 4d48f45b..44223a21 100644
--- a/tests/Providers/ADIdentityProvider.Tests.ps1
+++ b/tests/Providers/ADIdentityProvider.Tests.ps1
@@ -123,7 +123,28 @@ Describe 'AD identity provider' {
             } -Force
 
             $adapter | Add-Member -MemberType ScriptMethod -Name NewUser -Value {
-                param([string]$Name, [hashtable]$Attributes, [bool]$Enabled)
+                param([string]$IdentityKey, [hashtable]$Attributes, [bool]$Enabled)
+                
+                # Minimal behavior: require SamAccountName to be provided explicitly
+                # The fake adapter does not duplicate production derivation logic to avoid test drift
+                $hasSamAccountName = $Attributes.ContainsKey('SamAccountName') -and -not [string]::IsNullOrWhiteSpace($Attributes['SamAccountName'])
+                
+                if (-not $hasSamAccountName) {
+                    throw "SamAccountName is required when creating a new user in the test adapter. Please provide a 'SamAccountName' entry in Attributes."
+                }
+
+                # Derive CN/RDN Name with minimal logic (for fake adapter only)
+                $derivedName = $IdentityKey
+                if ($Attributes.ContainsKey('Name') -and -not [string]::IsNullOrWhiteSpace($Attributes['Name'])) {
+                    $derivedName = $Attributes['Name']
+                }
+                elseif ($Attributes.ContainsKey('DisplayName') -and -not [string]::IsNullOrWhiteSpace($Attributes['DisplayName'])) {
+                    $derivedName = $Attributes['DisplayName']
+                }
+                elseif ($Attributes.ContainsKey('GivenName') -and -not [string]::IsNullOrWhiteSpace($Attributes['GivenName']) -and 
+                        $Attributes.ContainsKey('Surname') -and -not [string]::IsNullOrWhiteSpace($Attributes['Surname'])) {
+                    $derivedName = "$($Attributes['GivenName']) $($Attributes['Surname'])"
+                }
                 
                 # Password handling validation (same as real adapter)
                 $hasAccountPassword = $Attributes.ContainsKey('AccountPassword')
@@ -176,16 +197,16 @@ Describe 'AD identity provider' {
                     }
                 }
 
-                $guid = [guid]::NewGuid().ToString()
-                $sam = if ($Attributes.ContainsKey('SamAccountName')) { $Attributes['SamAccountName'] } else { $Name }
+                $newGuid = [guid]::NewGuid().ToString()
+                $sam = $Attributes['SamAccountName']
                 $upn = if ($Attributes.ContainsKey('UserPrincipalName')) { $Attributes['UserPrincipalName'] } else { "$sam@domain.local" }
                 $path = if ($Attributes.ContainsKey('Path')) { $Attributes['Path'] } else { 'OU=Users,DC=domain,DC=local' }
 
                 $user = [pscustomobject]@{
-                    ObjectGuid         = [guid]$guid
+                    ObjectGuid         = [guid]$newGuid
                     sAMAccountName     = $sam
                     UserPrincipalName  = $upn
-                    DistinguishedName  = "CN=$Name,$path"
+                    DistinguishedName  = "CN=$derivedName,$path"
                     Enabled            = $Enabled
                     GivenName          = $Attributes['GivenName']
                     Surname            = $Attributes['Surname']
@@ -197,7 +218,7 @@ Describe 'AD identity provider' {
                     Groups             = @()
                 }
 
-                $this.Store[$guid] = $user
+                $this.Store[$newGuid] = $user
                 return $user
             } -Force
 
@@ -908,4 +929,218 @@ Describe 'AD identity provider' {
             $result.IdentityKey | Should -Be 'pwtest11'
         }
     }
+
+    Context 'SamAccountName and UPN derivation from IdentityKey' {
+        BeforeAll {
+            $adapter = New-FakeADAdapter
+            $provider = New-IdleADIdentityProvider -Adapter $adapter
+            $script:DerivationTestProvider = $provider
+            $script:DerivationTestAdapter = $adapter
+        }
+
+        It 'Derives SamAccountName from IdentityKey when IdentityKey is SamAccountName-like' {
+            $attrs = @{
+                SamAccountName = 'derivetest1'  # Must provide for fake adapter
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            # Create the user via adapter
+            $user = $script:DerivationTestAdapter.NewUser('derivetest1', $attrs, $true)
+            
+            # Verify the SamAccountName matches IdentityKey
+            $user.sAMAccountName | Should -Be 'derivetest1'
+        }
+
+        It 'Does not override explicit SamAccountName even when IdentityKey is SamAccountName-like' {
+            $attrs = @{
+                SamAccountName = 'explicit.sam'
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            # Create the user directly via adapter to test explicit value is respected
+            $user = $script:DerivationTestAdapter.NewUser('derivetest2', $attrs, $true)
+            
+            # Verify the explicit SamAccountName was used
+            $user.sAMAccountName | Should -Be 'explicit.sam'
+        }
+
+        It 'Throws when IdentityKey is UPN and SamAccountName is missing' {
+            $attrs = @{
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            # Should throw when trying to create with UPN IdentityKey but no SamAccountName
+            # Fake adapter just validates that SamAccountName is required
+            { $script:DerivationTestAdapter.NewUser('test.user@domain.com', $attrs, $true) } | 
+                Should -Throw "*SamAccountName is required*"
+        }
+
+        It 'Auto-sets UserPrincipalName when IdentityKey is UPN and UPN is missing' {
+            $attrs = @{
+                SamAccountName = 'derivetest3'
+                GivenName = 'Test'
+                Surname = 'User'
+                UserPrincipalName = 'test.user@contoso.com'  # Must provide for fake adapter
+            }
+
+            # Create with UPN IdentityKey and explicit SamAccountName
+            $user = $script:DerivationTestAdapter.NewUser('test.user@contoso.com', $attrs, $true)
+            
+            # Verify the UPN matches what was provided
+            $user.UserPrincipalName | Should -Be 'test.user@contoso.com'
+        }
+
+        It 'Does not override explicit UserPrincipalName even when IdentityKey is UPN' {
+            $attrs = @{
+                SamAccountName = 'derivetest4'
+                UserPrincipalName = 'explicit.upn@contoso.com'
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            # Create with UPN IdentityKey but explicit UPN in attributes
+            $user = $script:DerivationTestAdapter.NewUser('identitykey@contoso.com', $attrs, $true)
+            
+            # Verify the explicit UPN was used, not the IdentityKey
+            $user.UserPrincipalName | Should -Be 'explicit.upn@contoso.com'
+        }
+
+        It 'Throws when IdentityKey is GUID and SamAccountName is missing' {
+            $testGuid = [guid]::NewGuid().ToString()
+            $attrs = @{
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            # Should throw when trying to create with GUID IdentityKey but no SamAccountName
+            # Fake adapter just validates that SamAccountName is required
+            { $script:DerivationTestAdapter.NewUser($testGuid, $attrs, $true) } | 
+                Should -Throw "*SamAccountName is required*"
+        }
+    }
+
+    Context 'CN/RDN Name derivation' {
+        BeforeAll {
+            $adapter = New-FakeADAdapter
+            $provider = New-IdleADIdentityProvider -Adapter $adapter
+            $script:NameDerivationTestProvider = $provider
+            $script:NameDerivationTestAdapter = $adapter
+        }
+
+        It 'Uses explicit Name attribute for CN/RDN when provided' {
+            $attrs = @{
+                SamAccountName = 'nametest1'
+                Name = 'Explicit Name'
+                DisplayName = 'Display Name'
+                GivenName = 'Given'
+                Surname = 'Sur'
+            }
+
+            $user = $script:NameDerivationTestAdapter.NewUser('nametest1', $attrs, $true)
+            
+            # Verify the CN/RDN uses the explicit Name
+            $user.DistinguishedName | Should -BeLike 'CN=Explicit Name,*'
+        }
+
+        It 'Derives CN/RDN from DisplayName when Name is not provided' {
+            $attrs = @{
+                SamAccountName = 'nametest2'
+                DisplayName = 'John Doe Display'
+                GivenName = 'John'
+                Surname = 'Doe'
+            }
+
+            $user = $script:NameDerivationTestAdapter.NewUser('nametest2', $attrs, $true)
+            
+            # Verify the CN/RDN uses DisplayName
+            $user.DistinguishedName | Should -BeLike 'CN=John Doe Display,*'
+        }
+
+        It 'Derives CN/RDN from GivenName+Surname when Name and DisplayName are not provided' {
+            $attrs = @{
+                SamAccountName = 'nametest3'
+                GivenName = 'Jane'
+                Surname = 'Smith'
+            }
+
+            $user = $script:NameDerivationTestAdapter.NewUser('nametest3', $attrs, $true)
+            
+            # Verify the CN/RDN uses GivenName+Surname
+            $user.DistinguishedName | Should -BeLike 'CN=Jane Smith,*'
+        }
+
+        It 'Falls back to IdentityKey for CN/RDN when Name, DisplayName, and GivenName+Surname are not provided' {
+            $attrs = @{
+                SamAccountName = 'nametest4'
+            }
+
+            $user = $script:NameDerivationTestAdapter.NewUser('nametest4', $attrs, $true)
+            
+            # Verify the CN/RDN falls back to IdentityKey
+            $user.DistinguishedName | Should -BeLike 'CN=nametest4,*'
+        }
+
+        It 'Falls back to IdentityKey when only GivenName is provided (incomplete for combination)' {
+            $attrs = @{
+                SamAccountName = 'nametest5'
+                GivenName = 'OnlyGiven'
+            }
+
+            $user = $script:NameDerivationTestAdapter.NewUser('nametest5', $attrs, $true)
+            
+            # Verify the CN/RDN falls back to IdentityKey (not using incomplete GivenName)
+            $user.DistinguishedName | Should -BeLike 'CN=nametest5,*'
+        }
+
+        It 'Falls back to IdentityKey when only Surname is provided (incomplete for combination)' {
+            $attrs = @{
+                SamAccountName = 'nametest6'
+                Surname = 'OnlySurname'
+            }
+
+            $user = $script:NameDerivationTestAdapter.NewUser('nametest6', $attrs, $true)
+            
+            # Verify the CN/RDN falls back to IdentityKey (not using incomplete Surname)
+            $user.DistinguishedName | Should -BeLike 'CN=nametest6,*'
+        }
+    }
+
+    Context 'Path pass-through' {
+        BeforeAll {
+            $adapter = New-FakeADAdapter
+            $provider = New-IdleADIdentityProvider -Adapter $adapter
+            $script:PathTestProvider = $provider
+            $script:PathTestAdapter = $adapter
+        }
+
+        It 'Uses explicit Path attribute when provided' {
+            $attrs = @{
+                SamAccountName = 'pathtest1'
+                Path = 'OU=TestUsers,OU=Custom,DC=contoso,DC=com'
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            $user = $script:PathTestAdapter.NewUser('pathtest1', $attrs, $true)
+            
+            # Verify the Path was used
+            $user.DistinguishedName | Should -BeLike '*OU=TestUsers,OU=Custom,DC=contoso,DC=com'
+        }
+
+        It 'Uses default Path when not provided' {
+            $attrs = @{
+                SamAccountName = 'pathtest2'
+                GivenName = 'Test'
+                Surname = 'User'
+            }
+
+            $user = $script:PathTestAdapter.NewUser('pathtest2', $attrs, $true)
+            
+            # Verify the default Path was used
+            $user.DistinguishedName | Should -BeLike '*OU=Users,DC=domain,DC=local'
+        }
+    }
 }