diff --git a/sdk/identity/azure-identity/CHANGELOG.md b/sdk/identity/azure-identity/CHANGELOG.md
index 781fe4b105c3..d753337d91cd 100644
--- a/sdk/identity/azure-identity/CHANGELOG.md
+++ b/sdk/identity/azure-identity/CHANGELOG.md
@@ -1,6 +1,9 @@
 # Release History
 
 ## 1.4.0b4 (Unreleased)
+- `AzureCliCredential` raises `CredentialUnavailableError` when no user is
+  logged in to the Azure CLI.
+  ([#11819](https://github.com/Azure/azure-sdk-for-python/issues/11819))
 - `AzureCliCredential` and `VSCodeCredential`, which enable authenticating as
   the identity signed in to the Azure CLI and Visual Studio Code, respectively,
   can be imported from `azure.identity` and `azure.identity.aio`.
diff --git a/sdk/identity/azure-identity/azure/identity/_credentials/azure_cli.py b/sdk/identity/azure-identity/azure/identity/_credentials/azure_cli.py
index e18dd43ca3a6..550e36fc1754 100644
--- a/sdk/identity/azure-identity/azure/identity/_credentials/azure_cli.py
+++ b/sdk/identity/azure-identity/azure/identity/_credentials/azure_cli.py
@@ -24,6 +24,7 @@
 
 CLI_NOT_FOUND = "Azure CLI not found on path"
 COMMAND_LINE = "az account get-access-token --output json --resource {}"
+NOT_LOGGED_IN = "Please run 'az login' to set up an account"
 
 # CLI's "expiresOn" is naive, so we use this naive datetime for the epoch to calculate expires_on in UTC
 EPOCH = datetime.fromtimestamp(0)
@@ -116,6 +117,8 @@ def _run_command(command):
         # non-zero return from shell
         if ex.returncode == 127 or ex.output.startswith("'az' is not recognized"):
             error = CredentialUnavailableError(message=CLI_NOT_FOUND)
+        elif "az login" in ex.output or "az account set" in ex.output:
+            error = CredentialUnavailableError(message=NOT_LOGGED_IN)
         else:
             # return code is from the CLI -> propagate its output
             if ex.output:
diff --git a/sdk/identity/azure-identity/azure/identity/aio/_credentials/azure_cli.py b/sdk/identity/azure-identity/azure/identity/aio/_credentials/azure_cli.py
index 99ca177450e5..c049b1421cde 100644
--- a/sdk/identity/azure-identity/azure/identity/aio/_credentials/azure_cli.py
+++ b/sdk/identity/azure-identity/azure/identity/aio/_credentials/azure_cli.py
@@ -13,6 +13,7 @@
     CLI_NOT_FOUND,
     COMMAND_LINE,
     get_safe_working_dir,
+    NOT_LOGGED_IN,
     parse_token,
     sanitize_output,
 )
@@ -83,5 +84,8 @@ async def _run_command(command):
     if proc.returncode == 127 or output.startswith("'az' is not recognized"):
         raise CredentialUnavailableError(CLI_NOT_FOUND)
 
+    if "az login" in output or "az account set" in output:
+        raise CredentialUnavailableError(message=NOT_LOGGED_IN)
+
     message = sanitize_output(output) if output else "Failed to invoke Azure CLI"
     raise ClientAuthenticationError(message=message)
diff --git a/sdk/identity/azure-identity/tests/test_cli_credential.py b/sdk/identity/azure-identity/tests/test_cli_credential.py
index 7377d330455e..3467a451356a 100644
--- a/sdk/identity/azure-identity/tests/test_cli_credential.py
+++ b/sdk/identity/azure-identity/tests/test_cli_credential.py
@@ -6,7 +6,7 @@
 import json
 
 from azure.identity import AzureCliCredential, CredentialUnavailableError
-from azure.identity._credentials.azure_cli import CLI_NOT_FOUND
+from azure.identity._credentials.azure_cli import CLI_NOT_FOUND, NOT_LOGGED_IN
 from azure.core.exceptions import ClientAuthenticationError
 
 import subprocess
@@ -98,10 +98,19 @@ def test_cannot_execute_shell():
 
 
 def test_not_logged_in():
-    """When the CLI isn't logged in, the credential should raise an error containing the CLI's output"""
+    """When the CLI isn't logged in, the credential should raise CredentialUnavailableError"""
 
     output = "ERROR: Please run 'az login' to setup account."
     with mock.patch(CHECK_OUTPUT, raise_called_process_error(1, output)):
+        with pytest.raises(CredentialUnavailableError, match=NOT_LOGGED_IN):
+            AzureCliCredential().get_token("scope")
+
+
+def test_unexpected_error():
+    """When the CLI returns an unexpected error, the credential should raise an error containing the CLI's output"""
+
+    output = "something went wrong"
+    with mock.patch(CHECK_OUTPUT, raise_called_process_error(42, output)):
         with pytest.raises(ClientAuthenticationError, match=output):
             AzureCliCredential().get_token("scope")
 
diff --git a/sdk/identity/azure-identity/tests/test_cli_credential_async.py b/sdk/identity/azure-identity/tests/test_cli_credential_async.py
index 9e8ad1f82217..ae9dec90a341 100644
--- a/sdk/identity/azure-identity/tests/test_cli_credential_async.py
+++ b/sdk/identity/azure-identity/tests/test_cli_credential_async.py
@@ -9,7 +9,7 @@
 
 from azure.identity import CredentialUnavailableError
 from azure.identity.aio import AzureCliCredential
-from azure.identity._credentials.azure_cli import CLI_NOT_FOUND
+from azure.identity._credentials.azure_cli import CLI_NOT_FOUND, NOT_LOGGED_IN
 from azure.core.exceptions import ClientAuthenticationError
 import pytest
 
@@ -18,6 +18,8 @@
 
 SUBPROCESS_EXEC = AzureCliCredential.__module__ + ".asyncio.create_subprocess_exec"
 
+pytestmark = pytest.mark.asyncio
+
 
 def mock_exec(stdout, stderr="", return_code=0):
     async def communicate():
@@ -27,7 +29,6 @@ async def communicate():
     return mock.Mock(return_value=get_completed_future(process))
 
 
-@pytest.mark.asyncio
 async def test_no_scopes():
     """The credential should raise ValueError when get_token is called with no scopes"""
 
@@ -35,7 +36,6 @@ async def test_no_scopes():
         await AzureCliCredential().get_token()
 
 
-@pytest.mark.asyncio
 async def test_multiple_scopes():
     """The credential should raise ValueError when get_token is called with more than one scope"""
 
@@ -43,14 +43,12 @@ async def test_multiple_scopes():
         await AzureCliCredential().get_token("one scope", "and another")
 
 
-@pytest.mark.asyncio
 async def test_close():
     """The credential must define close, although it's a no-op because the credential has no transport"""
 
     await AzureCliCredential().close()
 
 
-@pytest.mark.asyncio
 async def test_context_manager():
     """The credential must be a context manager, although it does nothing as one because it has no transport"""
 
@@ -59,7 +57,6 @@ async def test_context_manager():
 
 
 @pytest.mark.skipif(not sys.platform.startswith("win"), reason="tests Windows-specific behavior")
-@pytest.mark.asyncio
 async def test_windows_fallback():
     """The credential should fall back to the sync implementation when not using ProactorEventLoop on Windows"""
 
@@ -74,7 +71,6 @@ async def test_windows_fallback():
     assert sync_get_token.call_count == 1
 
 
-@pytest.mark.asyncio
 async def test_get_token():
     """The credential should parse the CLI's output to an AccessToken"""
 
@@ -100,7 +96,6 @@ async def test_get_token():
     assert token.expires_on == valid_seconds
 
 
-@pytest.mark.asyncio
 async def test_cli_not_installed_linux():
     """The credential should raise CredentialUnavailableError when the CLI isn't installed"""
 
@@ -111,7 +106,6 @@ async def test_cli_not_installed_linux():
             await credential.get_token("scope")
 
 
-@pytest.mark.asyncio
 async def test_cli_not_installed_windows():
     """The credential should raise CredentialUnavailableError when the CLI isn't installed"""
 
@@ -122,7 +116,6 @@ async def test_cli_not_installed_windows():
             await credential.get_token("scope")
 
 
-@pytest.mark.asyncio
 async def test_cannot_execute_shell():
     """The credential should raise CredentialUnavailableError when the subprocess doesn't start"""
 
@@ -132,19 +125,27 @@ async def test_cannot_execute_shell():
             await credential.get_token("scope")
 
 
-@pytest.mark.asyncio
 async def test_not_logged_in():
-    """When the CLI isn't logged in, the credential should raise an error containing the CLI's output"""
+    """When the CLI isn't logged in, the credential should raise CredentialUnavailableError"""
 
     output = "ERROR: Please run 'az login' to setup account."
     with mock.patch(SUBPROCESS_EXEC, mock_exec(output, return_code=1)):
+        with pytest.raises(CredentialUnavailableError, match=NOT_LOGGED_IN):
+            credential = AzureCliCredential()
+            await credential.get_token("scope")
+
+
+async def test_unexpected_error():
+    """When the CLI returns an unexpected error, the credential should raise an error containing the CLI's output"""
+
+    output = "something went wrong"
+    with mock.patch(SUBPROCESS_EXEC, mock_exec(output, return_code=42)):
         with pytest.raises(ClientAuthenticationError, match=output):
             credential = AzureCliCredential()
             await credential.get_token("scope")
 
 
 @pytest.mark.parametrize("output", TEST_ERROR_OUTPUTS)
-@pytest.mark.asyncio
 async def test_parsing_error_does_not_expose_token(output):
     """Errors during CLI output parsing shouldn't expose access tokens in that output"""
 
@@ -158,7 +159,6 @@ async def test_parsing_error_does_not_expose_token(output):
 
 
 @pytest.mark.parametrize("output", TEST_ERROR_OUTPUTS)
-@pytest.mark.asyncio
 async def test_subprocess_error_does_not_expose_token(output):
     """Errors from the subprocess shouldn't expose access tokens in CLI output"""