diff --git a/dev/dags/cosmos_manifest_example.py b/dev/dags/cosmos_manifest_example.py
index 543fe641c..8e35208b8 100644
--- a/dev/dags/cosmos_manifest_example.py
+++ b/dev/dags/cosmos_manifest_example.py
@@ -87,26 +87,24 @@ def cosmos_manifest_example() -> None:
     # [END gcp_gs_example]
 
     # [START azure_abfs_example]
-    # azure_abfs_example = DbtTaskGroup(
-    #     group_id="azure_abfs_example",
-    #     project_config=ProjectConfig(
-    #         manifest_path="abfs://cosmos-manifest-test/manifest.json",
-    #         manifest_conn_id="azure_abfs_conn",
-    #         # `manifest_conn_id` is optional. If not provided, the default connection ID `wasb_default` is used.
-    #         project_name="jaffle_shop",
-    #     ),
-    #     profile_config=profile_config,
-    #     render_config=render_config,
-    #     execution_config=execution_config,
-    #     operator_args={"install_deps": True},
-    # )
+    azure_abfs_example = DbtTaskGroup(
+        group_id="azure_abfs_example",
+        project_config=ProjectConfig(
+            manifest_path="abfs://cosmos-manifest-test/manifest.json",
+            manifest_conn_id="azure_abfs_conn",
+            # `manifest_conn_id` is optional. If not provided, the default connection ID `wasb_default` is used.
+            project_name="jaffle_shop",
+        ),
+        profile_config=profile_config,
+        render_config=render_config,
+        execution_config=execution_config,
+        operator_args={"install_deps": True},
+    )
     # [END azure_abfs_example]
 
     post_dbt = EmptyOperator(task_id="post_dbt")
 
-    (pre_dbt >> local_example >> aws_s3_example >> gcp_gs_example >> post_dbt)
-    # TODO: re-enable the following
-    # (pre_dbt >> local_example >> aws_s3_example >> gcp_gs_example >> azure_abfs_example >> post_dbt)
+    (pre_dbt >> local_example >> aws_s3_example >> gcp_gs_example >> azure_abfs_example >> post_dbt)
 
 
 cosmos_manifest_example()
diff --git a/pyproject.toml b/pyproject.toml
index 912dd83ea..11290b1a5 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -70,7 +70,7 @@ amazon = [
     "apache-airflow-providers-amazon[s3fs]>=3.0.0",
 ]
 google = ["apache-airflow-providers-google>=10.17.0"]
-microsoft = ["apache-airflow-providers-microsoft-azure"]
+microsoft = ["apache-airflow-providers-microsoft-azure>=8.5.0"]
 all = [
     "astronomer-cosmos[dbt-all]",
     "astronomer-cosmos[openlineage]",
@@ -95,7 +95,7 @@ aws_eks = [
     "apache-airflow-providers-amazon>=8.0.0",
 ]
 azure-container-instance = [
-    "apache-airflow-providers-microsoft-azure>=8.4.0",
+    "apache-airflow-providers-microsoft-azure>=8.5.0",
 ]
 gcp-cloud-run-job = [
     "apache-airflow-providers-google>=10.11.0",
@@ -187,7 +187,7 @@ dependencies = [
     "apache-airflow-providers-amazon[s3fs]>=3.0.0",
     "apache-airflow-providers-cncf-kubernetes>=5.1.1",
     "apache-airflow-providers-google>=10.17.0",
-    "apache-airflow-providers-microsoft-azure",
+    "apache-airflow-providers-microsoft-azure>=8.5.0",
     "msgpack",
     "openlineage-airflow",
     "pydantic>=1.10.0",
diff --git a/scripts/test/pre-install-airflow.sh b/scripts/test/pre-install-airflow.sh
index 7017fc628..da8e72fe3 100755
--- a/scripts/test/pre-install-airflow.sh
+++ b/scripts/test/pre-install-airflow.sh
@@ -44,6 +44,7 @@ elif [ "$AIRFLOW_VERSION" = "2.7" ] ; then
 else
   uv pip install "apache-airflow-providers-amazon[s3fs]" --constraint /tmp/constraint.txt
   uv pip install "apache-airflow-providers-cncf-kubernetes" --constraint /tmp/constraint.txt
+
   # The Airflow 2.9 constraints file at
   # https://raw.githubusercontent.com/apache/airflow/constraints-2.9.0/constraints-3.11.txt
   # specifies apache-airflow-providers-google==10.16.0. However, our CI setup uses a Google connection without a token,
@@ -52,7 +53,14 @@ else
   # we are using apache-airflow-providers-google>=10.17.0 and skipping constraints installation, as the specified
   # version does not meet our requirements.
   uv pip install "apache-airflow-providers-google>=10.17.0"
-  uv pip install apache-airflow-providers-microsoft-azure --constraint /tmp/constraint.txt
+
+  # The Airflow 2.8 constraints file at
+  # https://raw.githubusercontent.com/apache/airflow/constraints-2.8.0/constraints-3.11.txt
+  # specifies apache-airflow-providers-microsoft-azure==8.4.0. However, our Azure connection setup in the CI,
+  # previously led to authentication issues with this version. This issue got resolved in
+  # apache-airflow-providers-microsoft-azure==8.5.0. Hence, we are using apache-airflow-providers-microsoft-azure>=8.5.0
+  # and skipping installation with constraints, as the specified version does not meet our requirements.
+  uv pip install "apache-airflow-providers-microsoft-azure>=8.5.0"
 fi
 
 rm /tmp/constraint.txt