diff --git a/src/azure-cli/azure/cli/command_modules/role/_help.py b/src/azure-cli/azure/cli/command_modules/role/_help.py
index 9d6cdc77a27..17580616705 100644
--- a/src/azure-cli/azure/cli/command_modules/role/_help.py
+++ b/src/azure-cli/azure/cli/command_modules/role/_help.py
@@ -536,6 +536,8 @@
   text: az ad sp create-for-rbac -n MyApp
 - name: Create with a Contributor role assignments on specified scopes. To retrieve current subscription ID, run `az account show --query id --output tsv`.
   text: az ad sp create-for-rbac -n MyApp --role Contributor --scopes /subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/resourceGroup1 /subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/resourceGroup2
+- name: Do not create password credential.
+  text: az ad sp create-for-rbac --create-password false
 - name: Create using a self-signed certificate.
   text: az ad sp create-for-rbac --create-cert
 - name: Create using an existing certificate string.
diff --git a/src/azure-cli/azure/cli/command_modules/role/_params.py b/src/azure-cli/azure/cli/command_modules/role/_params.py
index dde58c846aa..5868538004c 100644
--- a/src/azure-cli/azure/cli/command_modules/role/_params.py
+++ b/src/azure-cli/azure/cli/command_modules/role/_params.py
@@ -186,6 +186,9 @@ def load_arguments(self, _):
         c.argument('display_name', options_list=['--display-name', '--name', '-n'],
                    help='Display name of the service principal. If not present, default to azure-cli-%Y-%m-%d-%H-%M-%S '
                         'where the suffix is the time of creation.')
+        c.argument('create_password', arg_type=get_three_state_flag(), arg_group='Credential',
+                   help='Create a password credential (secret) on the the application. This is the default behavior. '
+                        'Set this argument to false to disable creating password credential.')
         c.argument('scopes', nargs='+',
                    help="Space-separated list of scopes the service principal's role assignment applies to. e.g., "
                         "subscriptions/0b1f6471-1bf0-4dda-aec3-111122223333/resourceGroups/myGroup, "
diff --git a/src/azure-cli/azure/cli/command_modules/role/custom.py b/src/azure-cli/azure/cli/command_modules/role/custom.py
index 68f45b2b8e8..d0283ba5fcd 100644
--- a/src/azure-cli/azure/cli/command_modules/role/custom.py
+++ b/src/azure-cli/azure/cli/command_modules/role/custom.py
@@ -1219,6 +1219,7 @@ def create_service_principal_for_rbac(
         # pylint:disable=too-many-statements,too-many-locals, too-many-branches, unused-argument
         cmd, display_name=None,
         service_management_reference=None,
+        create_password=True,
         years=None, create_cert=False, cert=None, scopes=None, role=None,
         show_auth_in_json=None, skip_assignment=False, keyvault=None):
     import time
@@ -1278,7 +1279,7 @@ def create_service_principal_for_rbac(
 
     # Password credential is created *after* application creation.
     # https://learn.microsoft.com/en-us/graph/api/resources/passwordcredential
-    if not use_cert:
+    if create_password and not use_cert:
         result = _application_add_password(graph_client, aad_application, 'rbac', app_start_date, app_end_date)
         password = result['secretText']
 
@@ -1333,7 +1334,9 @@ def create_service_principal_for_rbac(
                                        ex.response.headers)  # pylint: disable=no-member
                     raise
 
-    logger.warning(CREDENTIAL_WARNING)
+    # No need to show warning if no credential is created
+    if password or cert_file:
+        logger.warning(CREDENTIAL_WARNING)
 
     if show_auth_in_json:
         from azure.cli.core._profile import Profile
diff --git a/src/azure-cli/azure/cli/command_modules/role/tests/latest/recordings/test_create_for_rbac_no_password.yaml b/src/azure-cli/azure/cli/command_modules/role/tests/latest/recordings/test_create_for_rbac_no_password.yaml
new file mode 100644
index 00000000000..dbfa2527233
--- /dev/null
+++ b/src/azure-cli/azure/cli/command_modules/role/tests/latest/recordings/test_create_for_rbac_no_password.yaml
@@ -0,0 +1,433 @@
+interactions:
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad sp create-for-rbac
+      Connection:
+      - keep-alive
+      ParameterSetName:
+      - --display-name --create-password
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: GET
+    uri: https://graph.microsoft.com/v1.0/servicePrincipals?$filter=displayName%20eq%20%27azure-cli-test-000001%27
+  response:
+    body:
+      string: '{"@odata.context":"https://graph.microsoft.com/v1.0/$metadata#servicePrincipals","value":[]}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '92'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:26 GMT
+      odata-version:
+      - '4.0'
+      request-id:
+      - 23fcfb42-67a6-430e-b9d6-49c6d88ef8b1
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00008471"}}'
+      x-ms-resource-unit:
+      - '1'
+    status:
+      code: 200
+      message: OK
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad sp create-for-rbac
+      Connection:
+      - keep-alive
+      ParameterSetName:
+      - --display-name --create-password
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: GET
+    uri: https://graph.microsoft.com/v1.0/applications?$filter=startswith%28displayName%2C%27azure-cli-test-000001%27%29
+  response:
+    body:
+      string: '{"@odata.context":"https://graph.microsoft.com/v1.0/$metadata#applications","value":[]}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '87'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:27 GMT
+      odata-version:
+      - '4.0'
+      request-id:
+      - 96d258fb-a463-41f9-ac55-1c3ba60e7028
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00000BCF"}}'
+      x-ms-resource-unit:
+      - '2'
+    status:
+      code: 200
+      message: OK
+- request:
+    body: '{"displayName": "azure-cli-test-000001", "keyCredentials": []}'
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad sp create-for-rbac
+      Connection:
+      - keep-alive
+      Content-Length:
+      - '62'
+      Content-Type:
+      - application/json
+      ParameterSetName:
+      - --display-name --create-password
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: POST
+    uri: https://graph.microsoft.com/v1.0/applications
+  response:
+    body:
+      string: '{"@odata.context": "https://graph.microsoft.com/v1.0/$metadata#applications/$entity",
+        "id": "42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd", "deletedDateTime": null, "appId":
+        "175bcaf1-6850-4192-a3ea-8852192eb783", "applicationTemplateId": null, "disabledByMicrosoftStatus":
+        null, "createdDateTime": "2025-04-09T09:58:28.8914089Z", "displayName": "azure-cli-test-000001",
+        "description": null, "groupMembershipClaims": null, "identifierUris": [],
+        "isDeviceOnlyAuthSupported": null, "isFallbackPublicClient": null, "nativeAuthenticationApisEnabled":
+        null, "notes": null, "publisherDomain": "AzureSDKTeam.onmicrosoft.com", "serviceManagementReference":
+        null, "signInAudience": "AzureADMyOrg", "tags": [], "tokenEncryptionKeyId":
+        null, "uniqueName": null, "samlMetadataUrl": null, "defaultRedirectUri": null,
+        "certification": null, "optionalClaims": null, "servicePrincipalLockConfiguration":
+        null, "requestSignatureVerification": null, "addIns": [], "api": {"acceptMappedClaims":
+        null, "knownClientApplications": [], "requestedAccessTokenVersion": null,
+        "oauth2PermissionScopes": [], "preAuthorizedApplications": []}, "appRoles":
+        [], "info": {"logoUrl": null, "marketingUrl": null, "privacyStatementUrl":
+        null, "supportUrl": null, "termsOfServiceUrl": null}, "keyCredentials": [],
+        "parentalControlSettings": {"countriesBlockedForMinors": [], "legalAgeGroupRule":
+        "Allow"}, "passwordCredentials": [], "publicClient": {"redirectUris": []},
+        "requiredResourceAccess": [], "verifiedPublisher": {"displayName": null, "verifiedPublisherId":
+        null, "addedDateTime": null}, "web": {"homePageUrl": null, "logoutUrl": null,
+        "redirectUris": [], "implicitGrantSettings": {"enableAccessTokenIssuance":
+        false, "enableIdTokenIssuance": false}, "redirectUriSettings": []}, "spa":
+        {"redirectUris": []}}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '1771'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:28 GMT
+      location:
+      - https://graph.microsoft.com/v2/54826b22-38d6-4fb2-bad9-b7b93a3e9c5a/directoryObjects/42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd/Microsoft.DirectoryServices.Application
+      odata-version:
+      - '4.0'
+      request-id:
+      - cc47a87b-693a-480e-84ba-7b51c93547fe
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00008476"}}'
+      x-ms-resource-unit:
+      - '1'
+    status:
+      code: 201
+      message: Created
+- request:
+    body: '{"appId": "175bcaf1-6850-4192-a3ea-8852192eb783", "accountEnabled": true}'
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad sp create-for-rbac
+      Connection:
+      - keep-alive
+      Content-Length:
+      - '73'
+      Content-Type:
+      - application/json
+      ParameterSetName:
+      - --display-name --create-password
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: POST
+    uri: https://graph.microsoft.com/v1.0/servicePrincipals
+  response:
+    body:
+      string: '{"@odata.context":"https://graph.microsoft.com/v1.0/$metadata#servicePrincipals/$entity","id":"93521fa5-e235-4be9-abcf-2f1d6e791728","deletedDateTime":null,"accountEnabled":true,"alternativeNames":[],"appDisplayName":"azure-cli-test-000001","appDescription":null,"appId":"175bcaf1-6850-4192-a3ea-8852192eb783","applicationTemplateId":null,"appOwnerOrganizationId":"54826b22-38d6-4fb2-bad9-b7b93a3e9c5a","appRoleAssignmentRequired":false,"createdDateTime":"2025-04-09T09:58:29Z","description":null,"disabledByMicrosoftStatus":null,"displayName":"azure-cli-test-000001","homepage":null,"loginUrl":null,"logoutUrl":null,"notes":null,"notificationEmailAddresses":[],"preferredSingleSignOnMode":null,"preferredTokenSigningKeyThumbprint":null,"replyUrls":[],"servicePrincipalNames":["175bcaf1-6850-4192-a3ea-8852192eb783"],"servicePrincipalType":"Application","signInAudience":"AzureADMyOrg","tags":[],"tokenEncryptionKeyId":null,"samlSingleSignOnSettings":null,"addIns":[],"appRoles":[],"info":{"logoUrl":null,"marketingUrl":null,"privacyStatementUrl":null,"supportUrl":null,"termsOfServiceUrl":null},"keyCredentials":[],"oauth2PermissionScopes":[],"passwordCredentials":[],"resourceSpecificApplicationPermissions":[],"verifiedPublisher":{"displayName":null,"verifiedPublisherId":null,"addedDateTime":null}}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '1302'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:29 GMT
+      location:
+      - https://graph.microsoft.com/v2/54826b22-38d6-4fb2-bad9-b7b93a3e9c5a/directoryObjects/93521fa5-e235-4be9-abcf-2f1d6e791728/Microsoft.DirectoryServices.ServicePrincipal
+      odata-version:
+      - '4.0'
+      request-id:
+      - 4c0b5cde-9165-4a10-88b7-c02013b363eb
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF0000846D"}}'
+      x-ms-resource-unit:
+      - '1'
+    status:
+      code: 201
+      message: Created
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad app show
+      Connection:
+      - keep-alive
+      ParameterSetName:
+      - --id
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: GET
+    uri: https://graph.microsoft.com/v1.0/applications?$filter=appId%20eq%20%27175bcaf1-6850-4192-a3ea-8852192eb783%27
+  response:
+    body:
+      string: '{"@odata.context":"https://graph.microsoft.com/v1.0/$metadata#applications","value":[{"id":"42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd","deletedDateTime":null,"appId":"175bcaf1-6850-4192-a3ea-8852192eb783","applicationTemplateId":null,"disabledByMicrosoftStatus":null,"createdDateTime":"2025-04-09T09:58:28Z","displayName":"azure-cli-test-000001","description":null,"groupMembershipClaims":null,"identifierUris":[],"isDeviceOnlyAuthSupported":null,"isFallbackPublicClient":null,"nativeAuthenticationApisEnabled":null,"notes":null,"publisherDomain":"AzureSDKTeam.onmicrosoft.com","serviceManagementReference":null,"signInAudience":"AzureADMyOrg","tags":[],"tokenEncryptionKeyId":null,"uniqueName":null,"samlMetadataUrl":null,"defaultRedirectUri":null,"certification":null,"optionalClaims":null,"servicePrincipalLockConfiguration":null,"requestSignatureVerification":null,"addIns":[],"api":{"acceptMappedClaims":null,"knownClientApplications":[],"requestedAccessTokenVersion":null,"oauth2PermissionScopes":[],"preAuthorizedApplications":[]},"appRoles":[],"info":{"logoUrl":null,"marketingUrl":null,"privacyStatementUrl":null,"supportUrl":null,"termsOfServiceUrl":null},"keyCredentials":[],"parentalControlSettings":{"countriesBlockedForMinors":[],"legalAgeGroupRule":"Allow"},"passwordCredentials":[],"publicClient":{"redirectUris":[]},"requiredResourceAccess":[],"verifiedPublisher":{"displayName":null,"verifiedPublisherId":null,"addedDateTime":null},"web":{"homePageUrl":null,"logoutUrl":null,"redirectUris":[],"implicitGrantSettings":{"enableAccessTokenIssuance":false,"enableIdTokenIssuance":false},"redirectUriSettings":[]},"spa":{"redirectUris":[]}}]}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '1650'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:30 GMT
+      odata-version:
+      - '4.0'
+      request-id:
+      - d26ac1ed-444a-4896-9c79-f96c70bbe4c9
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00007E31"}}'
+      x-ms-resource-unit:
+      - '2'
+    status:
+      code: 200
+      message: OK
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad app show
+      Connection:
+      - keep-alive
+      ParameterSetName:
+      - --id
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: GET
+    uri: https://graph.microsoft.com/v1.0/applications/42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd
+  response:
+    body:
+      string: '{"@odata.context":"https://graph.microsoft.com/v1.0/$metadata#applications/$entity","id":"42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd","deletedDateTime":null,"appId":"175bcaf1-6850-4192-a3ea-8852192eb783","applicationTemplateId":null,"disabledByMicrosoftStatus":null,"createdDateTime":"2025-04-09T09:58:28Z","displayName":"azure-cli-test-000001","description":null,"groupMembershipClaims":null,"identifierUris":[],"isDeviceOnlyAuthSupported":null,"isFallbackPublicClient":null,"nativeAuthenticationApisEnabled":null,"notes":null,"publisherDomain":"AzureSDKTeam.onmicrosoft.com","serviceManagementReference":null,"signInAudience":"AzureADMyOrg","tags":[],"tokenEncryptionKeyId":null,"uniqueName":null,"samlMetadataUrl":null,"defaultRedirectUri":null,"certification":null,"optionalClaims":null,"servicePrincipalLockConfiguration":null,"requestSignatureVerification":null,"addIns":[],"api":{"acceptMappedClaims":null,"knownClientApplications":[],"requestedAccessTokenVersion":null,"oauth2PermissionScopes":[],"preAuthorizedApplications":[]},"appRoles":[],"info":{"logoUrl":null,"marketingUrl":null,"privacyStatementUrl":null,"supportUrl":null,"termsOfServiceUrl":null},"keyCredentials":[],"parentalControlSettings":{"countriesBlockedForMinors":[],"legalAgeGroupRule":"Allow"},"passwordCredentials":[],"publicClient":{"redirectUris":[]},"requiredResourceAccess":[],"verifiedPublisher":{"displayName":null,"verifiedPublisherId":null,"addedDateTime":null},"web":{"homePageUrl":null,"logoutUrl":null,"redirectUris":[],"implicitGrantSettings":{"enableAccessTokenIssuance":false,"enableIdTokenIssuance":false},"redirectUriSettings":[]},"spa":{"redirectUris":[]}}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '1646'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:31 GMT
+      odata-version:
+      - '4.0'
+      request-id:
+      - 955f04a1-3d13-490a-8c02-bcc43d3628eb
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF000054C4"}}'
+      x-ms-resource-unit:
+      - '1'
+    status:
+      code: 200
+      message: OK
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad app delete
+      Connection:
+      - keep-alive
+      ParameterSetName:
+      - --id
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: GET
+    uri: https://graph.microsoft.com/v1.0/applications?$filter=appId%20eq%20%27175bcaf1-6850-4192-a3ea-8852192eb783%27
+  response:
+    body:
+      string: '{"@odata.context":"https://graph.microsoft.com/v1.0/$metadata#applications","value":[{"id":"42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd","deletedDateTime":null,"appId":"175bcaf1-6850-4192-a3ea-8852192eb783","applicationTemplateId":null,"disabledByMicrosoftStatus":null,"createdDateTime":"2025-04-09T09:58:28Z","displayName":"azure-cli-test-000001","description":null,"groupMembershipClaims":null,"identifierUris":[],"isDeviceOnlyAuthSupported":null,"isFallbackPublicClient":null,"nativeAuthenticationApisEnabled":null,"notes":null,"publisherDomain":"AzureSDKTeam.onmicrosoft.com","serviceManagementReference":null,"signInAudience":"AzureADMyOrg","tags":[],"tokenEncryptionKeyId":null,"uniqueName":null,"samlMetadataUrl":null,"defaultRedirectUri":null,"certification":null,"optionalClaims":null,"servicePrincipalLockConfiguration":null,"requestSignatureVerification":null,"addIns":[],"api":{"acceptMappedClaims":null,"knownClientApplications":[],"requestedAccessTokenVersion":null,"oauth2PermissionScopes":[],"preAuthorizedApplications":[]},"appRoles":[],"info":{"logoUrl":null,"marketingUrl":null,"privacyStatementUrl":null,"supportUrl":null,"termsOfServiceUrl":null},"keyCredentials":[],"parentalControlSettings":{"countriesBlockedForMinors":[],"legalAgeGroupRule":"Allow"},"passwordCredentials":[],"publicClient":{"redirectUris":[]},"requiredResourceAccess":[],"verifiedPublisher":{"displayName":null,"verifiedPublisherId":null,"addedDateTime":null},"web":{"homePageUrl":null,"logoutUrl":null,"redirectUris":[],"implicitGrantSettings":{"enableAccessTokenIssuance":false,"enableIdTokenIssuance":false},"redirectUriSettings":[]},"spa":{"redirectUris":[]}}]}'
+    headers:
+      cache-control:
+      - no-cache
+      content-length:
+      - '1650'
+      content-type:
+      - application/json;odata.metadata=minimal;odata.streaming=true;IEEE754Compatible=false;charset=utf-8
+      date:
+      - Wed, 09 Apr 2025 09:58:32 GMT
+      odata-version:
+      - '4.0'
+      request-id:
+      - fdb8a7bd-26d7-4c5c-9335-252a18605cec
+      strict-transport-security:
+      - max-age=31536000
+      transfer-encoding:
+      - chunked
+      vary:
+      - Accept-Encoding
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00000BC1"}}'
+      x-ms-resource-unit:
+      - '2'
+    status:
+      code: 200
+      message: OK
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - ad app delete
+      Connection:
+      - keep-alive
+      Content-Length:
+      - '0'
+      ParameterSetName:
+      - --id
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: DELETE
+    uri: https://graph.microsoft.com/v1.0/applications/42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd
+  response:
+    body:
+      string: ''
+    headers:
+      cache-control:
+      - no-cache
+      date:
+      - Wed, 09 Apr 2025 09:58:33 GMT
+      request-id:
+      - 4ea066e7-47d8-40b0-b2fc-f14b4a5a550a
+      strict-transport-security:
+      - max-age=31536000
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00008478"}}'
+      x-ms-resource-unit:
+      - '1'
+    status:
+      code: 204
+      message: No Content
+- request:
+    body: null
+    headers:
+      Accept:
+      - '*/*'
+      Accept-Encoding:
+      - gzip, deflate
+      CommandName:
+      - rest
+      Connection:
+      - keep-alive
+      Content-Length:
+      - '0'
+      ParameterSetName:
+      - --method --url
+      User-Agent:
+      - python/3.12.10 (Windows-11-10.0.26100-SP0) AZURECLI/2.71.0
+    method: DELETE
+    uri: https://graph.microsoft.com/v1.0/directory/deletedItems/42040a6b-ff98-4e6e-a4dc-fa45f7f3f6cd
+  response:
+    body:
+      string: ''
+    headers:
+      cache-control:
+      - no-cache
+      date:
+      - Wed, 09 Apr 2025 09:58:34 GMT
+      request-id:
+      - 8972eb97-b024-47fa-923d-b0ed14dac6f4
+      strict-transport-security:
+      - max-age=31536000
+      x-ms-ags-diagnostic:
+      - '{"ServerInfo":{"DataCenter":"Southeast Asia","Slice":"E","Ring":"5","ScaleUnit":"001","RoleInstance":"SI2PEPF00003BA6"}}'
+      x-ms-resource-unit:
+      - '1'
+    status:
+      code: 204
+      message: No Content
+version: 1
diff --git a/src/azure-cli/azure/cli/command_modules/role/tests/latest/test_role.py b/src/azure-cli/azure/cli/command_modules/role/tests/latest/test_role.py
index 02af12a80c1..4a0ed8c3999 100644
--- a/src/azure-cli/azure/cli/command_modules/role/tests/latest/test_role.py
+++ b/src/azure-cli/azure/cli/command_modules/role/tests/latest/test_role.py
@@ -41,6 +41,15 @@ def test_create_for_rbac_password(self):
         # Make sure no role assignment is created by default
         self.cmd('role assignment list --assignee {app_id} --all', checks=self.check('length(@)', 0))
 
+    def test_create_for_rbac_no_password(self):
+        self.kwargs['display_name'] = self.create_random_name('azure-cli-test-', 30)
+        result = self.cmd('ad sp create-for-rbac --display-name {display_name} --create-password false',
+                          checks=[
+                              self.check('displayName', '{display_name}'),
+                              self.check('password', None)
+                          ]).get_output_in_json()
+        self.kwargs['app_id'] = result['appId']
+
     def test_create_for_rbac_create_cert(self):
 
         self.kwargs['display_name'] = self.create_random_name('azure-cli-test-', 30)