diff --git a/providers/microsoft/azure/src/airflow/providers/microsoft/azure/hooks/msgraph.py b/providers/microsoft/azure/src/airflow/providers/microsoft/azure/hooks/msgraph.py
index 376292e1b3c6f..8216e9138149e 100644
--- a/providers/microsoft/azure/src/airflow/providers/microsoft/azure/hooks/msgraph.py
+++ b/providers/microsoft/azure/src/airflow/providers/microsoft/azure/hooks/msgraph.py
@@ -276,6 +276,8 @@ def to_msal_proxies(self, authority: str | None, proxies: dict | None) -> dict |
                     if authority.endswith(domain_name):
                         return None
             return proxies
+        if proxies:
+            return proxies
         return None
 
     def _build_request_adapter(self, connection) -> tuple[str, RequestAdapter]:
diff --git a/providers/microsoft/azure/tests/unit/microsoft/azure/hooks/test_msgraph.py b/providers/microsoft/azure/tests/unit/microsoft/azure/hooks/test_msgraph.py
index 6f6216d8fa9d1..4230bcd8ebec6 100644
--- a/providers/microsoft/azure/tests/unit/microsoft/azure/hooks/test_msgraph.py
+++ b/providers/microsoft/azure/tests/unit/microsoft/azure/hooks/test_msgraph.py
@@ -432,6 +432,46 @@ async def test_build_request_adapter_masks_secrets(self):
                 mock_redact.assert_any_call({"http": "http://user:pass@proxy:3128"}, name="proxies")
                 mock_redact.assert_any_call("my_secret_password", name="client_secret")
 
+    def test_msal_returns_none_when_authority_matches_no_proxy(self):
+        hook = KiotaRequestAdapterHook(conn_id="msgraph")
+
+        proxies = {"http": "http://proxy", "no": "*.example.com"}
+        authority = "api.example.com"
+
+        result = hook.to_msal_proxies(authority, proxies)
+
+        assert result is None
+
+    def test_msal_returns_proxies_when_authority_does_not_match_no_proxy(self):
+        hook = KiotaRequestAdapterHook(conn_id="msgraph")
+
+        proxies = {"http": "http://proxy", "no": "*.example.com"}
+        authority = "api.other.com"
+
+        result = hook.to_msal_proxies(authority, proxies)
+
+        assert result == proxies
+
+    def test_msal_returns_proxies_when_no_authority_no_proxy_key(self):
+        hook = KiotaRequestAdapterHook(conn_id="msgraph")
+
+        proxies = {"no": "*example.com"}
+        authority = None
+
+        result = hook.to_msal_proxies(authority, proxies)
+
+        assert result == proxies
+
+    def test_msal_returns_proxies_when_no_authority_with_proxy_key(self):
+        hook = KiotaRequestAdapterHook(conn_id="msgraph")
+
+        proxies = {"http": "http://proxy"}
+        authority = None
+
+        result = hook.to_msal_proxies(authority, proxies)
+
+        assert result == proxies
+
 
 class TestResponseHandler:
     def test_default_response_handler_when_json(self):