diff --git a/plugin/pkg/client/auth/azure/azure.go b/plugin/pkg/client/auth/azure/azure.go
index 11ef7afb2..f59f2f59e 100644
--- a/plugin/pkg/client/auth/azure/azure.go
+++ b/plugin/pkg/client/auth/azure/azure.go
@@ -273,8 +273,9 @@ func (ts *azureTokenSource) retrieveTokenFromCfg() (*azureToken, error) {
 	if expiresOn == "" {
 		return nil, fmt.Errorf("no expiresOn in cfg: %s", cfgExpiresOn)
 	}
+	tokenAudience := resourceID
 	if ts.configMode == configModeDefault {
-		resourceID = fmt.Sprintf("spn:%s", resourceID)
+		tokenAudience = fmt.Sprintf("spn:%s", resourceID)
 	}
 
 	return &azureToken{
@@ -284,7 +285,7 @@ func (ts *azureTokenSource) retrieveTokenFromCfg() (*azureToken, error) {
 			ExpiresIn:    json.Number(expiresIn),
 			ExpiresOn:    json.Number(expiresOn),
 			NotBefore:    json.Number(expiresOn),
-			Resource:     resourceID,
+			Resource:     tokenAudience,
 			Type:         tokenType,
 		},
 		environment: environment,
diff --git a/plugin/pkg/client/auth/azure/azure_test.go b/plugin/pkg/client/auth/azure/azure_test.go
index 75fb6c3ad..ba093add2 100644
--- a/plugin/pkg/client/auth/azure/azure_test.go
+++ b/plugin/pkg/client/auth/azure/azure_test.go
@@ -18,6 +18,7 @@ package azure
 
 import (
 	"encoding/json"
+	"fmt"
 	"strconv"
 	"strings"
 	"sync"
@@ -170,6 +171,55 @@ func TestAzureTokenSource(t *testing.T) {
 	expectedConfigModes := []string{"1", "0"}
 
 	for i, configMode := range configModes {
+		t.Run(fmt.Sprintf("validate token from cfg with configMode %v", configMode), func(t *testing.T) {
+			const (
+				serverID     = "fakeServerID"
+				clientID     = "fakeClientID"
+				tenantID     = "fakeTenantID"
+				accessToken  = "fakeToken"
+				environment  = "fakeEnvironment"
+				refreshToken = "fakeToken"
+				expiresIn    = "foo"
+				expiresOn    = "foo"
+			)
+			cfg := map[string]string{
+				cfgConfigMode:   string(configMode),
+				cfgApiserverID:  serverID,
+				cfgClientID:     clientID,
+				cfgTenantID:     tenantID,
+				cfgEnvironment:  environment,
+				cfgAccessToken:  accessToken,
+				cfgRefreshToken: refreshToken,
+				cfgExpiresIn:    expiresIn,
+				cfgExpiresOn:    expiresOn,
+			}
+			fakeSource := fakeTokenSource{}
+			persiter := &fakePersister{cache: make(map[string]string)}
+			tokenCache := newAzureTokenCache()
+			tokenSource := newAzureTokenSource(&fakeSource, tokenCache, cfg, configMode, persiter)
+			azTokenSource := tokenSource.(*azureTokenSource)
+			token, err := azTokenSource.retrieveTokenFromCfg()
+			if err != nil {
+				t.Errorf("failed to retrieve the token form cfg: %s", err)
+			}
+			if token.apiserverID != serverID {
+				t.Errorf("expecting token.apiserverID: %s, actual: %s", serverID, token.apiserverID)
+			}
+			if token.clientID != clientID {
+				t.Errorf("expecting token.clientID: %s, actual: %s", clientID, token.clientID)
+			}
+			if token.tenantID != tenantID {
+				t.Errorf("expecting token.tenantID: %s, actual: %s", tenantID, token.tenantID)
+			}
+			expectedAudience := serverID
+			if configMode == configModeDefault {
+				expectedAudience = fmt.Sprintf("spn:%s", serverID)
+			}
+			if token.token.Resource != expectedAudience {
+				t.Errorf("expecting adal token.Resource: %s, actual: %s", expectedAudience, token.token.Resource)
+			}
+		})
+
 		t.Run("validate token against cache", func(t *testing.T) {
 			fakeAccessToken := "fake token 1"
 			fakeSource := fakeTokenSource{