diff --git a/sdk/identity/identity/CHANGELOG.md b/sdk/identity/identity/CHANGELOG.md
index b7bb7acbdad7..e09c0804083f 100644
--- a/sdk/identity/identity/CHANGELOG.md
+++ b/sdk/identity/identity/CHANGELOG.md
@@ -1,9 +1,23 @@
 # Release History
 
+## 2.1.0-beta.1 (Unreleased)
+
+### Features Added
+
+- Added log warning for non-support of user assigned identity in Managed Identity credentials in Cloud Shell environments
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 2.0.3 (Unreleased)
 
 ### Features Added
 
+- Added log warning for non-support of user assigned identity in Managed Identity credentials in Cloud Shell environments
+
 ### Breaking Changes
 
 ### Bugs Fixed
diff --git a/sdk/identity/identity/src/credentials/managedIdentityCredential/cloudShellMsi.ts b/sdk/identity/identity/src/credentials/managedIdentityCredential/cloudShellMsi.ts
index a26e790508d6..fadc597a2780 100644
--- a/sdk/identity/identity/src/credentials/managedIdentityCredential/cloudShellMsi.ts
+++ b/sdk/identity/identity/src/credentials/managedIdentityCredential/cloudShellMsi.ts
@@ -12,7 +12,7 @@ import { MSI, MSIConfiguration } from "./models";
 import { mapScopesToResource } from "./utils";
 
 const msiName = "ManagedIdentityCredential - CloudShellMSI";
-const logger = credentialLogger(msiName);
+export const logger = credentialLogger(msiName);
 
 /**
  * Generates the options used on the request for an access token.
@@ -53,6 +53,7 @@ function prepareRequestOptions(
 
 /**
  * Defines how to determine whether the Azure Cloud Shell MSI is available, and also how to retrieve a token from the Azure Cloud Shell MSI.
+ * Since Azure Managed Identities aren't available in the Azure Cloud Shell, we log a warning for users that try to access cloud shell using user assigned identity.
  */
 export const cloudShellMsi: MSI = {
   async isAvailable(scopes): Promise<boolean> {
@@ -61,6 +62,7 @@ export const cloudShellMsi: MSI = {
       logger.info(`${msiName}: Unavailable. Multiple scopes are not supported.`);
       return false;
     }
+
     const result = Boolean(process.env.MSI_ENDPOINT);
     if (!result) {
       logger.info(`${msiName}: Unavailable. The environment variable MSI_ENDPOINT is needed.`);
@@ -73,6 +75,11 @@ export const cloudShellMsi: MSI = {
   ): Promise<AccessToken | null> {
     const { identityClient, scopes, clientId } = configuration;
 
+    if (clientId) {
+      logger.warning(
+        `${msiName}: does not support user-assigned identities in the Cloud Shell environment. Argument clientId will be ignored.`
+      );
+    }
     logger.info(
       `${msiName}: Using the endpoint coming form the environment variable MSI_ENDPOINT = ${process.env.MSI_ENDPOINT}.`
     );
diff --git a/sdk/identity/identity/src/util/logging.ts b/sdk/identity/identity/src/util/logging.ts
index 85bb44c9d47a..081164a6cb8b 100644
--- a/sdk/identity/identity/src/util/logging.ts
+++ b/sdk/identity/identity/src/util/logging.ts
@@ -69,6 +69,7 @@ export interface CredentialLoggerInstance {
   title: string;
   fullTitle: string;
   info(message: string): void;
+  warning(message: string): void;
   /**
    * The logging functions for warning and error are intentionally left out, since we want the identity logging to be at the info level.
    * Otherwise, they would look like:
@@ -97,10 +98,14 @@ export function credentialLoggerInstance(
     log.info(`${fullTitle} =>`, message);
   }
 
+  function warning(message: string): void {
+    log.warning(`${fullTitle} =>`, message);
+  }
   return {
     title,
     fullTitle,
     info,
+    warning,
   };
 }
 
diff --git a/sdk/identity/identity/test/internal/node/managedIdentityCredential.spec.ts b/sdk/identity/identity/test/internal/node/managedIdentityCredential.spec.ts
index fbce216678b6..567cf02570f3 100644
--- a/sdk/identity/identity/test/internal/node/managedIdentityCredential.spec.ts
+++ b/sdk/identity/identity/test/internal/node/managedIdentityCredential.spec.ts
@@ -7,6 +7,7 @@ import { tmpdir } from "os";
 import { mkdtempSync, rmdirSync, unlinkSync, writeFileSync } from "fs";
 import { RestError } from "@azure/core-rest-pipeline";
 import { ManagedIdentityCredential } from "../../../src";
+import Sinon from "sinon";
 import {
   imdsHost,
   imdsApiVersion,
@@ -19,6 +20,9 @@ import {
 import { createResponse, IdentityTestContextInterface } from "../../httpRequestsCommon";
 import { IdentityTestContext } from "../../httpRequests";
 import { AzureAuthorityHosts, DefaultAuthorityHost, DefaultTenantId } from "../../../src/constants";
+import { setLogLevel } from "@azure/logger";
+import { logger } from "../../../src/credentials/managedIdentityCredential/cloudShellMsi";
+import { Context } from "mocha";
 
 describe("ManagedIdentityCredential", function () {
   let testContext: IdentityTestContextInterface;
@@ -360,18 +364,35 @@ describe("ManagedIdentityCredential", function () {
   it("sends an authorization request correctly in an Cloud Shell environment", async () => {
     // Trigger Cloud Shell behavior by setting environment variables
     process.env.MSI_ENDPOINT = "https://endpoint";
-
     const authDetails = await testContext.sendCredentialRequests({
       scopes: ["https://service/.default"],
-      credential: new ManagedIdentityCredential("client"),
+      credential: new ManagedIdentityCredential(),
       secureResponses: [createResponse(200, { access_token: "token" })],
     });
-
     const authRequest = authDetails.requests[0];
     assert.equal(authRequest.method, "POST");
     assert.equal(authDetails.result!.token, "token");
   });
 
+  it("authorization request fails with client id passed in an Cloud Shell environment", async function (this: Context) {
+    // Trigger Cloud Shell behavior by setting environment variables
+    process.env.MSI_ENDPOINT = "https://endpoint";
+    const msiGetTokenSpy = Sinon.spy(ManagedIdentityCredential.prototype, "getToken");
+    const loggerSpy = Sinon.spy(logger, "warning");
+    setLogLevel("warning");
+    const authDetails = await testContext.sendCredentialRequests({
+      scopes: ["https://service/.default"],
+      credential: new ManagedIdentityCredential("client"),
+      secureResponses: [createResponse(200, { access_token: "token" })],
+    });
+    assert.equal(authDetails.result!.token, "token");
+    assert.equal(msiGetTokenSpy.called, true);
+    assert.equal(loggerSpy.calledOnce, true);
+    assert.deepEqual(loggerSpy.args[0], [
+      "ManagedIdentityCredential - CloudShellMSI: does not support user-assigned identities in the Cloud Shell environment. Argument clientId will be ignored.",
+    ]);
+  });
+
   it("sends an authorization request correctly in an Azure Arc environment", async function (this: Mocha.Context) {
     // Trigger Azure Arc behavior by setting environment variables