In Microsoft Entra ID, when one application (App1) needs to access another application's (App2) API securely without user interaction, it uses app-only authentication (also known as client credentials flow). For app-to-app communication: * App1 must be granted permissions to App2 (via application permissions). * App1 must authenticate using credentials that Entra ID recognizes. The valid credential types are: * Certificates - Secure method for app authentication using an X.509 certificate. * Client secrets - A text-based key (password) used to authenticate the app. Microsoft documentation states: "Application identity can be established using a client secret or certificate in the client credentials flow." Options B (Managed identity) apply only to Azure resources (not registered apps). Option D (User account) and E (One-time password) are interactive credentials and not valid for app-only access. In Microsoft Entra ID, when one application (App1) needs to access another application's (App2) API securely without user interaction, it uses app-only authentication (also known as client credentials flow). For app-to-app communication: * App1 must be granted permissions to App2 (via application permissions). * App1 must authenticate using credentials that Entra ID recognizes. The valid credential types are: * Certificates - Secure method for app authentication using an X.509 certificate. * Client secrets - A text-based key (password) used to authenticate the app. Microsoft documentation states: "Application identity can be established using a client secret or certificate in the client credentials flow." Options B (Managed identity) apply only to Azure resources (not registered apps). Option D (User account) and E (One-time password) are interactive credentials and not valid for app-only access.