diff --git a/sdk/core/azure-core/src/main/java/com/azure/core/util/Configuration.java b/sdk/core/azure-core/src/main/java/com/azure/core/util/Configuration.java
index 9094c37ab690..8b2d627902d4 100644
--- a/sdk/core/azure-core/src/main/java/com/azure/core/util/Configuration.java
+++ b/sdk/core/azure-core/src/main/java/com/azure/core/util/Configuration.java
@@ -112,6 +112,11 @@ public class Configuration implements Cloneable {
      */
     public static final String PROPERTY_AZURE_CLIENT_CERTIFICATE_PASSWORD = "AZURE_CLIENT_CERTIFICATE_PASSWORD";
 
+    /**
+     * Flag to enable sending the certificate chain in x5c header to support subject name / issuer based authentication.
+     */
+    public static final String PROPERTY_AZURE_CLIENT_SEND_CERTIFICATE_CHAIN = "AZURE_CLIENT_SEND_CERTIFICATE_CHAIN";
+
     /**
      * Flag to disable the CP1 client capabilities in Azure Identity Token credentials.
      */
diff --git a/sdk/identity/azure-identity/CHANGELOG.md b/sdk/identity/azure-identity/CHANGELOG.md
index 798df8b28ed8..2e72c383a378 100644
--- a/sdk/identity/azure-identity/CHANGELOG.md
+++ b/sdk/identity/azure-identity/CHANGELOG.md
@@ -3,6 +3,7 @@
 ## 1.14.0-beta.1 (Unreleased)
 
 ### Features Added
+- Added support in `EnvironmentCredential` (and thus `DefaultAzureCredential` when it chooses `EnvironmentCredential`) for using subject name / issuer authentication with client certificates by setting `AZURE_CLIENT_SEND_CERTIFICATE_CHAIN` to `1` or `true`. [#40013](https://github.com/Azure/azure-sdk-for-java/issues/40013) 
 
 ### Breaking Changes
 
diff --git a/sdk/identity/azure-identity/TROUBLESHOOTING.md b/sdk/identity/azure-identity/TROUBLESHOOTING.md
index 609eb2d718cd..9e087d6e6ccd 100644
--- a/sdk/identity/azure-identity/TROUBLESHOOTING.md
+++ b/sdk/identity/azure-identity/TROUBLESHOOTING.md
@@ -90,9 +90,9 @@ The underlying MSAL library, MSAL4J, also has detailed logging. It is highly ver
 ## Troubleshoot `EnvironmentCredential` authentication issues
 `CredentialUnavailableException`
 
-| Error Message |Description| Mitigation |
-|---|---|---|
-|Environment variables aren't fully configured.|A valid combination of environment variables wasn't set.|Ensure the appropriate environment variables are set **prior to application startup** for the intended authentication method.</p><ul><li>To authenticate a service principal using a client secret, ensure the variables `AZURE_CLIENT_ID`, `AZURE_TENANT_ID` and `AZURE_CLIENT_SECRET` are properly set.</li><li>To authenticate a service principal using a certificate, ensure the variables `AZURE_CLIENT_ID`, `AZURE_TENANT_ID`, `AZURE_CLIENT_CERTIFICATE_PATH` and optionally `AZURE_CLIENT_CERTIFICATE_PASSWORD` are properly set.</li><li>To authenticate a user using a password, ensure the variables `AZURE_USERNAME` and `AZURE_PASSWORD` are properly set.</li></ul>|
+| Error Message                                  | Description                                              | Mitigation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
+|------------------------------------------------|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
+| Environment variables aren't fully configured. | A valid combination of environment variables wasn't set. | Ensure the appropriate environment variables are set **prior to application startup** for the intended authentication method.</p><ul><li>To authenticate a service principal using a client secret, ensure the variables `AZURE_CLIENT_ID`, `AZURE_TENANT_ID` and `AZURE_CLIENT_SECRET` are properly set.</li><li>To authenticate a service principal using a certificate, ensure the variables `AZURE_CLIENT_ID`, `AZURE_TENANT_ID`, `AZURE_CLIENT_CERTIFICATE_PATH` and optionally `AZURE_CLIENT_CERTIFICATE_PASSWORD` are properly set. `AZURE_CLIENT_SEND_CERTIFICATE_CHAIN` may optionally be set to send certificate chain in x5c header to support subject name / issuer based authentication.</li><li>To authenticate a user using a password, ensure the variables `AZURE_USERNAME` and `AZURE_PASSWORD` are properly set.</li></ul> |
 
 ## Troubleshoot `ClientSecretCredential` authentication issues
 `ClientAuthenticationException`
diff --git a/sdk/identity/azure-identity/pom.xml b/sdk/identity/azure-identity/pom.xml
index bf39f31453b3..3a6d4c030af7 100644
--- a/sdk/identity/azure-identity/pom.xml
+++ b/sdk/identity/azure-identity/pom.xml
@@ -31,7 +31,7 @@
     <dependency>
       <groupId>com.azure</groupId>
       <artifactId>azure-core</artifactId>
-      <version>1.49.1</version> <!-- {x-version-update;com.azure:azure-core;dependency} -->
+      <version>1.50.0-beta.1</version> <!-- {x-version-update;unreleased_com.azure:azure-core;dependency} -->
     </dependency>
     <dependency>
       <groupId>com.azure</groupId>
diff --git a/sdk/identity/azure-identity/src/main/java/com/azure/identity/EnvironmentCredential.java b/sdk/identity/azure-identity/src/main/java/com/azure/identity/EnvironmentCredential.java
index d9712129de1e..f54f2fcb3e20 100644
--- a/sdk/identity/azure-identity/src/main/java/com/azure/identity/EnvironmentCredential.java
+++ b/sdk/identity/azure-identity/src/main/java/com/azure/identity/EnvironmentCredential.java
@@ -89,6 +89,8 @@ public class EnvironmentCredential implements TokenCredential {
         String certPassword = configuration.get(Configuration.PROPERTY_AZURE_CLIENT_CERTIFICATE_PASSWORD);
         String username = configuration.get(Configuration.PROPERTY_AZURE_USERNAME);
         String password = configuration.get(Configuration.PROPERTY_AZURE_PASSWORD);
+        String sendCertificateChain = configuration.get(Configuration.PROPERTY_AZURE_CLIENT_SEND_CERTIFICATE_CHAIN, "false");
+
         if (CoreUtils.isNullOrEmpty(identityClientOptions.getAdditionallyAllowedTenants())) {
             identityClientOptions
                 .setAdditionallyAllowedTenants(IdentityUtil.getAdditionalTenantsFromEnvironment(configuration));
@@ -106,6 +108,11 @@ public class EnvironmentCredential implements TokenCredential {
                 } else if (verifyNotNull(certPath)) {
                     // 1.2 Attempt ClientCertificateCredential
                     LOGGER.info("Azure Identity => EnvironmentCredential invoking ClientCertificateCredential");
+
+                    if ("true".equalsIgnoreCase(sendCertificateChain) || "1".equals(sendCertificateChain)) {
+                        identityClientOptions.setIncludeX5c(true);
+                    }
+
                     targetCredential = new ClientCertificateCredential(tenantId, clientId, certPath, null, certPassword,
                             identityClientOptions);
                 } else {