diff --git a/cli/azd/pkg/prompt/prompt_service.go b/cli/azd/pkg/prompt/prompt_service.go
index 4527ff0ab5f..f8d4fc0ad97 100644
--- a/cli/azd/pkg/prompt/prompt_service.go
+++ b/cli/azd/pkg/prompt/prompt_service.go
@@ -7,7 +7,9 @@ import (
 	"context"
 	"fmt"
 	"io"
+	"os"
 	"slices"
+	"strconv"
 	"strings"
 
 	"dario.cat/mergo"
@@ -28,6 +30,28 @@ var (
 	ErrNoResourceSelected = fmt.Errorf("no resource selected")
 )
 
+func isDemoModeEnabled() bool {
+	v, err := strconv.ParseBool(os.Getenv("AZD_DEMO_MODE"))
+	return err == nil && v
+}
+
+func formatSubscriptionDisplayName(subscription *account.Subscription, hideId bool) string {
+	if hideId {
+		return subscription.Name
+	}
+
+	return fmt.Sprintf("%s %s", subscription.Name, output.WithGrayFormat("(%s)", subscription.Id))
+}
+
+func formatAutoSelectedSubscriptionMessage(subscription *account.Subscription, hideId bool) string {
+	message := fmt.Sprintf("Auto-selected subscription: %s", subscription.Name)
+	if hideId {
+		return message
+	}
+
+	return fmt.Sprintf("%s (%s)", message, subscription.Id)
+}
+
 // ResourceOptions contains options for prompting the user to select a resource.
 type ResourceOptions struct {
 	// ResourceType is the type of resource to select.
@@ -222,6 +246,8 @@ func (ps *promptService) PromptSubscription(
 		}
 	}
 
+	hideId := isDemoModeEnabled()
+
 	// Handle --no-prompt mode
 	if ps.globalOptions.NoPrompt {
 		// Load subscriptions for both default lookup and auto-selection
@@ -238,6 +264,13 @@ func (ps *promptService) PromptSubscription(
 				}
 			}
 
+			if hideId {
+				return nil, fmt.Errorf(
+					"default subscription not found. " +
+						"Update your default subscription using " +
+						"'azd config set defaults.subscription <subscription-id>'")
+			}
+
 			return nil, fmt.Errorf(
 				"default subscription '%s' not found. "+
 					"Update your default subscription using "+
@@ -254,9 +287,7 @@ func (ps *promptService) PromptSubscription(
 					"and that your account has one or more active subscriptions. " +
 					"If needed, run 'azd auth login' to sign in.")
 		case 1:
-			ps.console.Message(ctx, fmt.Sprintf(
-				"Auto-selected subscription: %s (%s)",
-				subscriptionList[0].Name, subscriptionList[0].Id))
+			ps.console.Message(ctx, formatAutoSelectedSubscriptionMessage(&subscriptionList[0], hideId))
 			return &subscriptionList[0], nil
 		default:
 			return nil, fmt.Errorf(
@@ -281,7 +312,7 @@ func (ps *promptService) PromptSubscription(
 			return subscriptions, nil
 		},
 		DisplayResource: func(subscription *account.Subscription) (string, error) {
-			return fmt.Sprintf("%s %s", subscription.Name, output.WithGrayFormat("(%s)", subscription.Id)), nil
+			return formatSubscriptionDisplayName(subscription, hideId), nil
 		},
 		Selected: func(subscription *account.Subscription) bool {
 			return strings.EqualFold(subscription.Id, defaultSubscriptionId)
diff --git a/cli/azd/pkg/prompt/prompt_service_test.go b/cli/azd/pkg/prompt/prompt_service_test.go
index c16fe277523..01def1c4399 100644
--- a/cli/azd/pkg/prompt/prompt_service_test.go
+++ b/cli/azd/pkg/prompt/prompt_service_test.go
@@ -5,6 +5,7 @@ package prompt
 
 import (
 	"context"
+	"strings"
 	"testing"
 
 	"github.com/azure/azure-dev/cli/azd/internal"
@@ -166,3 +167,79 @@ func Test_PromptService_PromptSubscription_NoPrompt_AutoSelect(t *testing.T) {
 		})
 	}
 }
+
+func TestFormatSubscriptionDisplayName_DemoModeHidesId(t *testing.T) {
+	displayName := formatSubscriptionDisplayName(&account.Subscription{
+		Id:   "/subscriptions/sub-1",
+		Name: "Subscription 1",
+	}, true)
+
+	require.Equal(t, "Subscription 1", displayName)
+}
+
+func TestPromptSubscription_NoPrompt_AutoSelect_DemoModeRedactsOutput(t *testing.T) {
+	t.Setenv("AZD_DEMO_MODE", "true")
+
+	ucm := newInMemoryUserConfigManager(nil)
+	authManager := &mockauth.MockAuthManager{}
+	subscriptionManager := &mockaccount.MockSubscriptionManager{}
+	resourceService := &mockazapi.MockResourceService{}
+	mockConsole := mockinput.NewMockConsole()
+	mockConsole.SetNoPromptMode(true)
+
+	subscriptionManager.
+		On("GetSubscriptions", mock.Anything).
+		Return([]account.Subscription{
+			{Id: "sub-1", TenantId: "tenant-1", Name: "My Only Sub"},
+		}, nil)
+
+	ps := NewPromptService(
+		authManager,
+		mockConsole,
+		ucm,
+		subscriptionManager,
+		resourceService,
+		&internal.GlobalCommandOptions{NoPrompt: true},
+	)
+
+	result, err := ps.PromptSubscription(context.Background(), nil)
+	require.NoError(t, err)
+	require.Equal(t, "sub-1", result.Id)
+	require.Len(t, mockConsole.Output(), 1)
+	require.Equal(t, "Auto-selected subscription: My Only Sub", mockConsole.Output()[0])
+}
+
+func TestPromptSubscription_NoPrompt_DefaultNotFound_DemoModeRedactsId(t *testing.T) {
+	t.Setenv("AZD_DEMO_MODE", "true")
+
+	cfg := config.NewEmptyConfig()
+	err := cfg.Set("defaults.subscription", "sub-secret")
+	require.NoError(t, err)
+
+	ucm := newInMemoryUserConfigManager(cfg)
+	authManager := &mockauth.MockAuthManager{}
+	subscriptionManager := &mockaccount.MockSubscriptionManager{}
+	resourceService := &mockazapi.MockResourceService{}
+	mockConsole := mockinput.NewMockConsole()
+	mockConsole.SetNoPromptMode(true)
+
+	subscriptionManager.
+		On("GetSubscriptions", mock.Anything).
+		Return([]account.Subscription{
+			{Id: "sub-1", TenantId: "tenant-1", Name: "Sub 1"},
+		}, nil)
+
+	ps := NewPromptService(
+		authManager,
+		mockConsole,
+		ucm,
+		subscriptionManager,
+		resourceService,
+		&internal.GlobalCommandOptions{NoPrompt: true},
+	)
+
+	_, err = ps.PromptSubscription(context.Background(), nil)
+	require.Error(t, err)
+	require.ErrorContains(t, err, "default subscription not found")
+	require.False(t, strings.Contains(err.Error(), "sub-secret"))
+}