diff --git a/sdk/identity/azure-identity/CHANGELOG.md b/sdk/identity/azure-identity/CHANGELOG.md
index 40296e83a8bb..69a57465042b 100644
--- a/sdk/identity/azure-identity/CHANGELOG.md
+++ b/sdk/identity/azure-identity/CHANGELOG.md
@@ -7,6 +7,8 @@
 ### Breaking Changes
 
 ### Bugs Fixed
+- Fixed import of `azure.identity.aio.AzureApplicationCredential`
+  ([#19943](https://github.com/Azure/azure-sdk-for-python/issues/19943))
 
 ### Other Changes
 - Reduced redundant `ChainedTokenCredential` and `DefaultAzureCredential`
diff --git a/sdk/identity/azure-identity/azure/identity/_credentials/__init__.py b/sdk/identity/azure-identity/azure/identity/_credentials/__init__.py
index e2da5477db85..05dc788d1bde 100644
--- a/sdk/identity/azure-identity/azure/identity/_credentials/__init__.py
+++ b/sdk/identity/azure-identity/azure/identity/_credentials/__init__.py
@@ -13,7 +13,6 @@
 from .environment import EnvironmentCredential
 from .managed_identity import ManagedIdentityCredential
 from .shared_cache import SharedTokenCacheCredential
-from .azure_arc import AzureArcCredential
 from .azure_cli import AzureCliCredential
 from .device_code import DeviceCodeCredential
 from .user_password import UsernamePasswordCredential
@@ -23,7 +22,6 @@
 __all__ = [
     "AuthorizationCodeCredential",
     "AzureApplicationCredential",
-    "AzureArcCredential",
     "AzureCliCredential",
     "AzurePowerShellCredential",
     "CertificateCredential",
diff --git a/sdk/identity/azure-identity/azure/identity/aio/__init__.py b/sdk/identity/azure-identity/azure/identity/aio/__init__.py
index 09554293b1df..817b87ad06fd 100644
--- a/sdk/identity/azure-identity/azure/identity/aio/__init__.py
+++ b/sdk/identity/azure-identity/azure/identity/aio/__init__.py
@@ -6,6 +6,7 @@
 
 from ._credentials import (
     AuthorizationCodeCredential,
+    AzureApplicationCredential,
     AzureCliCredential,
     AzurePowerShellCredential,
     CertificateCredential,
@@ -21,6 +22,7 @@
 
 __all__ = [
     "AuthorizationCodeCredential",
+    "AzureApplicationCredential",
     "AzureCliCredential",
     "AzurePowerShellCredential",
     "CertificateCredential",
diff --git a/sdk/identity/azure-identity/azure/identity/aio/_credentials/__init__.py b/sdk/identity/azure-identity/azure/identity/aio/_credentials/__init__.py
index a8a2c987bf6e..5ddfe6360133 100644
--- a/sdk/identity/azure-identity/azure/identity/aio/_credentials/__init__.py
+++ b/sdk/identity/azure-identity/azure/identity/aio/_credentials/__init__.py
@@ -2,6 +2,7 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 # ------------------------------------
+from .application import AzureApplicationCredential
 from .authorization_code import AuthorizationCodeCredential
 from .azure_powershell import AzurePowerShellCredential
 from .chained import ChainedTokenCredential
@@ -11,14 +12,13 @@
 from .certificate import CertificateCredential
 from .client_secret import ClientSecretCredential
 from .shared_cache import SharedTokenCacheCredential
-from .azure_arc import AzureArcCredential
 from .azure_cli import AzureCliCredential
 from .vscode import VisualStudioCodeCredential
 
 
 __all__ = [
     "AuthorizationCodeCredential",
-    "AzureArcCredential",
+    "AzureApplicationCredential",
     "AzureCliCredential",
     "AzurePowerShellCredential",
     "CertificateCredential",
diff --git a/sdk/identity/azure-identity/tests/test_application_credential.py b/sdk/identity/azure-identity/tests/test_application_credential.py
index 738787828b5e..0910f8d9f8d1 100644
--- a/sdk/identity/azure-identity/tests/test_application_credential.py
+++ b/sdk/identity/azure-identity/tests/test_application_credential.py
@@ -15,6 +15,25 @@
 except ImportError:  # python < 3.3
     from mock import Mock, patch  # type: ignore
 
+from helpers import build_aad_response, get_discovery_response, mock_response
+
+
+def test_get_token():
+    expected_token = "***"
+
+    def send(request, **_):
+        parsed = urlparse(request.url)
+        tenant_id = parsed.path.split("/")[1]
+        if "/oauth2/v2.0/token" in request.url:
+            return mock_response(json_payload=build_aad_response(access_token=expected_token))
+        return get_discovery_response("https://{}/{}".format(parsed.netloc, tenant_id))
+
+    with patch.dict("os.environ", {var: "..." for var in EnvironmentVariables.CLIENT_SECRET_VARS}, clear=True):
+        credential = AzureApplicationCredential(transport=Mock(send=send))
+
+    token = credential.get_token("scope")
+    assert token.token == expected_token
+
 
 def test_iterates_only_once():
     """When a credential succeeds, AzureApplicationCredential should use that credential thereafter"""
diff --git a/sdk/identity/azure-identity/tests/test_application_credential_async.py b/sdk/identity/azure-identity/tests/test_application_credential_async.py
index 1e9359998e53..5a4407dcfbb2 100644
--- a/sdk/identity/azure-identity/tests/test_application_credential_async.py
+++ b/sdk/identity/azure-identity/tests/test_application_credential_async.py
@@ -6,11 +6,13 @@
 from unittest.mock import Mock, patch
 
 from azure.core.credentials import AccessToken
-from azure.identity import AzureApplicationCredential, CredentialUnavailableError
+from azure.identity import CredentialUnavailableError
+from azure.identity.aio import AzureApplicationCredential
 from azure.identity._constants import EnvironmentVariables
 import pytest
 from six.moves.urllib_parse import urlparse
 
+from helpers import build_aad_response, mock_response
 from helpers_async import get_completed_future
 
 
@@ -73,6 +75,20 @@ def test_initialization(mock_credential, expect_argument):
             test_initialization(mock_credential, expect_argument=False)
 
 
+@pytest.mark.asyncio
+async def test_get_token():
+    expected_token = "***"
+
+    async def send(request, **_):
+        return mock_response(json_payload=build_aad_response(access_token=expected_token))
+
+    with patch.dict("os.environ", {var: "..." for var in EnvironmentVariables.CLIENT_SECRET_VARS}, clear=True):
+        credential = AzureApplicationCredential(transport=Mock(send=send))
+
+    token = await credential.get_token("scope")
+    assert token.token == expected_token
+
+
 def test_managed_identity_client_id():
     """the credential should accept a user-assigned managed identity's client ID by kwarg or environment variable"""