Authentication Method for lakehouse

Thankyou, tayloramy, for your response.

Hi Padmashri,

We appreciate your inquiry submitted through the Microsoft Fabric Community Forum.

Based on my understanding, the Lakehouse connector in Power Query or Dataflow Gen2 currently supports only OAuth 2.0 (Organizational Account). This connector surface is designed for interactive authoring, and service principal authentication is not yet available in this user interface. For this reason, you will observe a difference compared with the Warehouse connector, which already supports both OAuth 2.0 and Service Principal authentication. This behaviour is consistent across both development and production environments.

In other Fabric or Azure Data Factory scenarios, service principals can be used with Lakehouse, but not through the Dataflow (Power Query) Lakehouse UI.

Please follow the supported Service Principal (SPN) or Managed Identity paths listed below:

1. Azure Data Factory or Fabric Pipelines → Microsoft Fabric Lakehouse connector. Supports Service Principal and Managed Identity.
2. Lakehouse SQL Analytics Endpoint or Warehouse SQL Endpoint. Supports Service Principals for SQL based access.

Additionally, please refer to the links provided below:
Warehouse Connectivity - Microsoft Fabric | Microsoft Learn
Copy and transform data in Microsoft Fabric Lakehouse - Azure Data Factory & Azure Synapse | Microsoft Learn

We hope the information above helps resolve the issue. Should you have any further queries, please feel free to contact the Microsoft Fabric community.

Thank you.