diff --git a/backend/src/lib/api-docs/constants.ts b/backend/src/lib/api-docs/constants.ts
index fabcae408..5326a977c 100644
--- a/backend/src/lib/api-docs/constants.ts
+++ b/backend/src/lib/api-docs/constants.ts
@@ -1126,6 +1126,7 @@ export const INTEGRATION = {
       shouldAutoRedeploy: "Used by Render to trigger auto deploy.",
       secretGCPLabel: "The label for GCP secrets.",
       secretAWSTag: "The tags for AWS secrets.",
+      azureLabel: "Define which label to assign to secrets created in Azure App Configuration.",
       githubVisibility:
         "Define where the secrets from the Github Integration should be visible. Option 'selected' lets you directly define which repositories to sync secrets to.",
       githubVisibilityRepoIds:
diff --git a/backend/src/services/integration-auth/integration-sync-secret-fns.ts b/backend/src/services/integration-auth/integration-sync-secret-fns.ts
new file mode 100644
index 000000000..df8b990af
--- /dev/null
+++ b/backend/src/services/integration-auth/integration-sync-secret-fns.ts
@@ -0,0 +1,35 @@
+export const isAzureKeyVaultReference = (uri: string) => {
+  const tryJsonDecode = () => {
+    try {
+      return (JSON.parse(uri) as { uri: string }).uri || uri;
+    } catch {
+      return uri;
+    }
+  };
+
+  const cleanUri = tryJsonDecode();
+
+  if (!cleanUri.startsWith("https://")) {
+    return false;
+  }
+
+  if (!cleanUri.includes(".vault.azure.net/secrets/")) {
+    return false;
+  }
+
+  // 3. Check for non-empty string between https:// and .vault.azure.net/secrets/
+  const parts = cleanUri.split(".vault.azure.net/secrets/");
+  const vaultName = parts[0].replace("https://", "");
+  if (!vaultName) {
+    return false;
+  }
+
+  // 4. Check for non-empty secret name
+  const secretParts = parts[1].split("/");
+  const secretName = secretParts[0];
+  if (!secretName) {
+    return false;
+  }
+
+  return true;
+};
diff --git a/backend/src/services/integration-auth/integration-sync-secret.ts b/backend/src/services/integration-auth/integration-sync-secret.ts
index cd8b8baea..4fd139608 100644
--- a/backend/src/services/integration-auth/integration-sync-secret.ts
+++ b/backend/src/services/integration-auth/integration-sync-secret.ts
@@ -51,6 +51,7 @@ import {
   Integrations,
   IntegrationUrls
 } from "./integration-list";
+import { isAzureKeyVaultReference } from "./integration-sync-secret-fns";
 
 const getSecretKeyValuePair = (secrets: Record<string, { value: string | null; comment?: string } | null>) =>
   Object.keys(secrets).reduce<Record<string, string | null | undefined>>((prev, key) => {
@@ -325,11 +326,12 @@ const syncSecretsAzureAppConfig = async ({
   };
 
   const metadata = IntegrationMetadataSchema.parse(integration.metadata);
-  const azureAppConfigSecrets = (
-    await getCompleteAzureAppConfigValues(
-      `${integration.app}/kv?api-version=2023-11-01&key=${metadata.secretPrefix || ""}*`
-    )
-  ).reduce(
+
+  const azureAppConfigValuesUrl = `${integration.app}/kv?api-version=2023-11-01&key=${metadata.secretPrefix}*${
+    metadata.azureLabel ? `&label=${metadata.azureLabel}` : ""
+  }`;
+
+  const azureAppConfigSecrets = (await getCompleteAzureAppConfigValues(azureAppConfigValuesUrl)).reduce(
     (accum, entry) => {
       accum[entry.key] = entry.value;
 
@@ -410,14 +412,24 @@ const syncSecretsAzureAppConfig = async ({
   }
 
   // create or update secrets on Azure App Config
+
   for await (const key of Object.keys(secrets)) {
     if (!(key in azureAppConfigSecrets) || secrets[key]?.value !== azureAppConfigSecrets[key]) {
       await request.put(
         `${integration.app}/kv/${key}?api-version=2023-11-01`,
         {
-          value: secrets[key]?.value
+          value: secrets[key]?.value,
+          ...(isAzureKeyVaultReference(secrets[key]?.value || "") && {
+            content_type: "application/vnd.microsoft.appconfig.keyvaultref+json;charset=utf-8"
+          })
         },
         {
+          ...(metadata.azureLabel && {
+            params: {
+              label: metadata.azureLabel
+            }
+          }),
+
           headers: {
             Authorization: `Bearer ${accessToken}`
           },
@@ -437,6 +449,11 @@ const syncSecretsAzureAppConfig = async ({
         headers: {
           Authorization: `Bearer ${accessToken}`
         },
+        ...(metadata.azureLabel && {
+          params: {
+            label: metadata.azureLabel
+          }
+        }),
         // we force IPV4 because docker setup fails with ipv6
         httpsAgent: new https.Agent({
           family: 4
diff --git a/backend/src/services/integration/integration-schema.ts b/backend/src/services/integration/integration-schema.ts
index d047a0c11..de4790188 100644
--- a/backend/src/services/integration/integration-schema.ts
+++ b/backend/src/services/integration/integration-schema.ts
@@ -35,6 +35,8 @@ export const IntegrationMetadataSchema = z.object({
     .optional()
     .describe(INTEGRATION.CREATE.metadata.secretAWSTag),
 
+  azureLabel: z.string().optional().describe(INTEGRATION.CREATE.metadata.azureLabel),
+
   githubVisibility: z
     .union([z.literal("selected"), z.literal("private"), z.literal("all")])
     .optional()
diff --git a/frontend/src/hooks/api/integrations/queries.tsx b/frontend/src/hooks/api/integrations/queries.tsx
index 11d42631a..5c059ae98 100644
--- a/frontend/src/hooks/api/integrations/queries.tsx
+++ b/frontend/src/hooks/api/integrations/queries.tsx
@@ -80,6 +80,7 @@ export const useCreateIntegration = () => {
           key: string;
           value: string;
         }[];
+        azureLabel?: string;
         githubVisibility?: string;
         githubVisibilityRepoIds?: string[];
         kmsKeyId?: string;
diff --git a/frontend/src/hooks/api/integrations/types.ts b/frontend/src/hooks/api/integrations/types.ts
index 0346b065a..7054befc7 100644
--- a/frontend/src/hooks/api/integrations/types.ts
+++ b/frontend/src/hooks/api/integrations/types.ts
@@ -41,6 +41,7 @@ export type TIntegration = {
       key: string;
       value: string;
     }[];
+    azureLabel?: string;
 
     kmsKeyId?: string;
     secretSuffix?: string;
diff --git a/frontend/src/pages/integrations/azure-app-configuration/create.tsx b/frontend/src/pages/integrations/azure-app-configuration/create.tsx
index c9fe4d1db..9b647c2a2 100644
--- a/frontend/src/pages/integrations/azure-app-configuration/create.tsx
+++ b/frontend/src/pages/integrations/azure-app-configuration/create.tsx
@@ -10,6 +10,7 @@ import { zodResolver } from "@hookform/resolvers/zod";
 import queryString from "query-string";
 import { z } from "zod";
 
+import { createNotification } from "@app/components/notifications";
 import { SecretPathInput } from "@app/components/v2/SecretPathInput";
 import { useCreateIntegration } from "@app/hooks/api";
 import { IntegrationSyncBehavior } from "@app/hooks/api/integrations/types";
@@ -19,9 +20,11 @@ import {
   Card,
   CardTitle,
   FormControl,
+  FormLabel,
   Input,
   Select,
-  SelectItem
+  SelectItem,
+  Switch
 } from "../../../components/v2";
 import { useGetIntegrationAuthById } from "../../../hooks/api/integrationAuth";
 import { useGetWorkspaceById } from "../../../hooks/api/workspace";
@@ -39,7 +42,9 @@ const schema = z.object({
   secretPath: z.string().trim().min(1, { message: "Secret path is required" }),
   sourceEnvironment: z.string().trim().min(1, { message: "Source environment is required" }),
   initialSyncBehavior: z.nativeEnum(IntegrationSyncBehavior),
-  secretPrefix: z.string().default("")
+  secretPrefix: z.string().default(""),
+  useLabels: z.boolean().default(false),
+  azureLabel: z.string().min(1).optional()
 });
 
 type TFormSchema = z.infer<typeof schema>;
@@ -60,6 +65,7 @@ export default function AzureAppConfigurationCreateIntegration() {
   const router = useRouter();
   const {
     control,
+    watch,
     setValue,
     handleSubmit,
     formState: { isSubmitting }
@@ -85,16 +91,28 @@ export default function AzureAppConfigurationCreateIntegration() {
     }
   }, [workspace]);
 
+  const shouldUseLabels = watch("useLabels");
+
   const handleIntegrationSubmit = async ({
     secretPath,
+    useLabels,
     sourceEnvironment,
     baseUrl,
     initialSyncBehavior,
-    secretPrefix
+    secretPrefix,
+    azureLabel
   }: TFormSchema) => {
     try {
       if (!integrationAuth?.id) return;
 
+      if (useLabels && !azureLabel) {
+        createNotification({
+          type: "error",
+          text: "Label must be provided when 'Use Labels' is enabled"
+        });
+        return;
+      }
+
       await mutateAsync({
         integrationAuthId: integrationAuth?.id,
         isActive: true,
@@ -103,7 +121,8 @@ export default function AzureAppConfigurationCreateIntegration() {
         secretPath,
         metadata: {
           initialSyncBehavior,
-          secretPrefix
+          secretPrefix,
+          ...(useLabels && { azureLabel })
         }
       });
 
@@ -155,35 +174,70 @@ export default function AzureAppConfigurationCreateIntegration() {
           </div>
         </CardTitle>
         <div className="px-6">
-          <Controller
-            control={control}
-            name="sourceEnvironment"
-            render={({ field, fieldState: { error } }) => (
-              <FormControl
-                label="Project Environment"
-                errorText={error?.message}
-                isError={Boolean(error)}
-              >
-                <Select
-                  className="w-full border border-mineshaft-500"
-                  dropdownContainerClassName="max-w-full"
-                  value={field.value}
-                  onValueChange={(val) => {
-                    field.onChange(val);
-                  }}
+          <div className="">
+            <Controller
+              control={control}
+              name="sourceEnvironment"
+              render={({ field, fieldState: { error } }) => (
+                <FormControl
+                  label="Project Environment"
+                  errorText={error?.message}
+                  isError={Boolean(error)}
                 >
-                  {workspace?.environments.map((sourceEnvironment) => (
-                    <SelectItem
-                      value={sourceEnvironment.slug}
-                      key={`source-environment-${sourceEnvironment.slug}`}
+                  <Select
+                    className="w-full border border-mineshaft-500"
+                    dropdownContainerClassName="max-w-full"
+                    value={field.value}
+                    onValueChange={(val) => {
+                      field.onChange(val);
+                    }}
+                  >
+                    {workspace?.environments.map((sourceEnvironment) => (
+                      <SelectItem
+                        value={sourceEnvironment.slug}
+                        key={`source-environment-${sourceEnvironment.slug}`}
+                      >
+                        {sourceEnvironment.name}
+                      </SelectItem>
+                    ))}
+                  </Select>
+                </FormControl>
+              )}
+            />
+
+            <div className="mb-2 flex w-full flex-col gap-1">
+              <Controller
+                control={control}
+                name="useLabels"
+                render={({ field: { onChange, value } }) => (
+                  <Switch
+                    id="use-environment-labels"
+                    onCheckedChange={(isChecked) => onChange(isChecked)}
+                    isChecked={value}
+                  >
+                    <FormLabel label="Use Labels" />
+                  </Switch>
+                )}
+              />
+
+              {shouldUseLabels && (
+                <Controller
+                  control={control}
+                  name="azureLabel"
+                  render={({ field, fieldState: { error } }) => (
+                    <FormControl
+                      className=""
+                      // label="Label"
+                      errorText={error?.message}
+                      isError={Boolean(error)}
                     >
-                      {sourceEnvironment.name}
-                    </SelectItem>
-                  ))}
-                </Select>
-              </FormControl>
-            )}
-          />
+                      <Input {...field} placeholder="pre-prod" />
+                    </FormControl>
+                  )}
+                />
+              )}
+            </div>
+          </div>
           <Controller
             control={control}
             name="secretPath"
diff --git a/frontend/src/views/IntegrationsPage/IntegrationDetailsPage/components/IntegrationSettingsSection.tsx b/frontend/src/views/IntegrationsPage/IntegrationDetailsPage/components/IntegrationSettingsSection.tsx
index f537baec6..0b8174c18 100644
--- a/frontend/src/views/IntegrationsPage/IntegrationDetailsPage/components/IntegrationSettingsSection.tsx
+++ b/frontend/src/views/IntegrationsPage/IntegrationDetailsPage/components/IntegrationSettingsSection.tsx
@@ -14,6 +14,7 @@ const metadataMappings: Record<keyof NonNullable<TIntegrationWithEnv["metadata"]
   githubVisibilityRepoIds: "Github Visibility Repo Ids",
   shouldAutoRedeploy: "Auto Redeploy Target Application When Secrets Change",
   secretAWSTag: "Tags For Secrets Stored In AWS",
+  azureLabel: "Azure Label",
   kmsKeyId: "AWS KMS Key ID",
   secretSuffix: "Secret Suffix",
   secretPrefix: "Secret Prefix",
@@ -86,7 +87,7 @@ export const IntegrationSettingsSection = ({ integration }: Props) => {
           Object.entries(integration.metadata).map(([key, value]) => (
             <div key={key} className="flex flex-col">
               <p className="text-sm text-gray-400">
-                {metadataMappings[key as keyof typeof metadataMappings]}
+                {!!value && metadataMappings[key as keyof typeof metadataMappings]}
               </p>
               <p className="text-sm text-gray-200">{renderValue(key as MetadataKey, value)}</p>
             </div>