diff --git a/extensions/teams/config.ts b/extensions/teams/config.ts
index 6d99139a1..8330fc537 100644
--- a/extensions/teams/config.ts
+++ b/extensions/teams/config.ts
@@ -2,6 +2,7 @@ const config = {
   botId: process.env.BOT_ID,
   botPassword: process.env.BOT_PASSWORD,
   azureFunctionUrl: process.env.AZURE_FUNCTION_URL,
+  tenantId: process.env.TEAMS_APP_TENANT_ID,
 };
 
 export default config;
diff --git a/extensions/teams/index.ts b/extensions/teams/index.ts
index 555a979b2..3eae007b8 100644
--- a/extensions/teams/index.ts
+++ b/extensions/teams/index.ts
@@ -19,7 +19,8 @@ import config from "./config";
 const credentialsFactory = new ConfigurationServiceClientCredentialFactory({
   MicrosoftAppId: config.botId,
   MicrosoftAppPassword: config.botPassword,
-  MicrosoftAppType: "MultiTenant",
+  MicrosoftAppType: "SingleTenant",
+  MicrosoftAppTenantId: config.tenantId
 });
 
 const botFrameworkAuthentication = new ConfigurationBotFrameworkAuthentication(
diff --git a/extensions/teams/infra/azure.bicep b/extensions/teams/infra/azure.bicep
index 8c706f330..b5b57237f 100644
--- a/extensions/teams/infra/azure.bicep
+++ b/extensions/teams/infra/azure.bicep
@@ -1,4 +1,4 @@
-@maxLength(20)
+@maxLength(25)
 @minLength(4)
 @description('Used to generate names for all resources in this file')
 param resourceBaseName string
@@ -6,6 +6,9 @@ param resourceBaseName string
 @description('Required when create Azure Bot service')
 param botAadAppClientId string
 
+@description('Required when using SingleTenant or UserAssignedMSI app type')
+param botAadAppTenantId string
+
 @secure()
 @description('Required by Bot Framework package in your bot project')
 param botAadAppClientSecret string
@@ -69,6 +72,10 @@ resource webApp 'Microsoft.Web/sites@2021-02-01' = {
           name: 'AZURE_FUNCTION_URL'
           value: azureFunctionURL
         }
+        {
+          name: 'TEAMS_APP_TENANT_ID'
+          value: botAadAppTenantId
+        }
       ]
       ftpsState: 'FtpsOnly'
     }
@@ -81,6 +88,7 @@ module azureBotRegistration './botRegistration/azurebot.bicep' = {
   params: {
     resourceBaseName: resourceBaseName
     botAadAppClientId: botAadAppClientId
+    botAadAppTenantId: botAadAppTenantId
     botAppDomain: webApp.properties.defaultHostName
     botDisplayName: botDisplayName
   }
diff --git a/extensions/teams/infra/azure.parameters.json b/extensions/teams/infra/azure.parameters.json
index 2d8bb37da..c342ec592 100644
--- a/extensions/teams/infra/azure.parameters.json
+++ b/extensions/teams/infra/azure.parameters.json
@@ -8,6 +8,9 @@
     "botAadAppClientId": {
       "value": "${{BOT_ID}}"
     },
+    "botAadAppTenantId": {
+      "value": "${{TEAMS_APP_TENANT_ID}}"
+    },
     "botAadAppClientSecret": {
       "value": "${{SECRET_BOT_PASSWORD}}"
     },
diff --git a/extensions/teams/infra/botRegistration/azurebot.bicep b/extensions/teams/infra/botRegistration/azurebot.bicep
index ab67c7a56..2251c96b4 100644
--- a/extensions/teams/infra/botRegistration/azurebot.bicep
+++ b/extensions/teams/infra/botRegistration/azurebot.bicep
@@ -1,4 +1,4 @@
-@maxLength(20)
+@maxLength(25)  // Changed from 20 to 25 to match parent template
 @minLength(4)
 @description('Used to generate names for all resources in this file')
 param resourceBaseName string
@@ -10,9 +10,10 @@ param botServiceName string = resourceBaseName
 param botServiceSku string = 'F0'
 param botAadAppClientId string
 param botAppDomain string
+param botAadAppTenantId string
 
 // Register your web service as a bot with the Bot Framework
-resource botService 'Microsoft.BotService/botServices@2021-03-01' = {
+resource botService 'Microsoft.BotService/botServices@2023-09-15-preview' = {
   kind: 'azurebot'
   location: 'global'
   name: botServiceName
@@ -20,6 +21,8 @@ resource botService 'Microsoft.BotService/botServices@2021-03-01' = {
     displayName: botDisplayName
     endpoint: 'https://${botAppDomain}/api/messages'
     msaAppId: botAadAppClientId
+    msaAppType: 'SingleTenant'
+    msaAppTenantId: botAadAppTenantId
   }
   sku: {
     name: botServiceSku
@@ -27,7 +30,7 @@ resource botService 'Microsoft.BotService/botServices@2021-03-01' = {
 }
 
 // Connect the bot service to Microsoft Teams
-resource botServiceMsTeamsChannel 'Microsoft.BotService/botServices/channels@2021-03-01' = {
+resource botServiceMsTeamsChannel 'Microsoft.BotService/botServices/channels@2023-09-15-preview' = {
   parent: botService
   location: 'global'
   name: 'MsTeamsChannel'
diff --git a/extensions/teams/package.json b/extensions/teams/package.json
index 72aa6557a..92fc66b2d 100644
--- a/extensions/teams/package.json
+++ b/extensions/teams/package.json
@@ -16,7 +16,8 @@
         "build": "tsc --build",
         "start": "node ./lib/index.js",
         "watch": "nodemon --exec \"npm run start\"",
-        "test": "echo \"Error: no test specified\" && exit 1"
+        "test": "echo \"Error: no test specified\" && exit 1",
+        "enable-sp": "node ./scripts/enable-service-principal.js"
     },
     "repository": {
         "type": "git",
diff --git a/extensions/teams/scripts/enable-service-principal.js b/extensions/teams/scripts/enable-service-principal.js
new file mode 100644
index 000000000..303a7509c
--- /dev/null
+++ b/extensions/teams/scripts/enable-service-principal.js
@@ -0,0 +1,46 @@
+// Script to create a service principal for the Microsoft Entra application
+const { exec } = require('child_process');
+const util = require('util');
+const execPromise = util.promisify(exec);
+
+async function createServicePrincipal() {
+  const appId = process.env.BOT_ID;
+  
+  if (!appId) {
+    console.error('Error: BOT_ID environment variable is not set');
+    process.exit(1);
+  }
+  
+  try {
+    // Check if Azure CLI is installed and logged in
+    await execPromise('az account show');
+    
+    // Check if service principal already exists
+    const checkCmd = `az ad sp list --filter "appId eq '${appId}'"`;
+    const { stdout } = await execPromise(checkCmd);
+    
+    const existingSpList = JSON.parse(stdout);
+    if (existingSpList && existingSpList.length > 0) {
+      console.log(`Service principal for application ID ${appId} already exists. Skipping creation.`);
+      process.exit(0);
+    }
+    
+    // Create service principal
+    const createCmd = `az ad sp create --id "${appId}"`;
+    await execPromise(createCmd);
+    
+    console.log('Service principal created successfully.');
+  } catch (error) {
+    console.error('Error:', error.message);
+    if (error.message.includes('az: not found') || error.message.includes('not recognized as an internal or external command')) {
+      console.error('Azure CLI is not installed or not in PATH. Please install it first.');
+    } else if (error.message.includes('Please run az login')) {
+      console.error('You are not logged into Azure. Please run az login first.');
+    } else {
+      console.error('Failed to create service principal. Please ensure you have the right permissions.');
+    }
+    process.exit(1);
+  }
+}
+
+createServicePrincipal();
diff --git a/extensions/teams/teamsapp.yml b/extensions/teams/teamsapp.yml
index 4c7018462..c4000bd75 100644
--- a/extensions/teams/teamsapp.yml
+++ b/extensions/teams/teamsapp.yml
@@ -27,6 +27,14 @@ provision:
       botId: BOT_ID
       # The Microsoft Entra application's client secret created for bot.
       botPassword: SECRET_BOT_PASSWORD
+      
+  # Create service principal for the Microsoft Entra application
+  - uses: cli/runNpmCommand
+    name: Enable Service Principal
+    with:
+      args: run enable-sp
+    env:
+      BOT_ID: ${{BOT_ID}}
 
   - uses: arm/deploy # Deploy given ARM templates parallelly.
     with:
diff --git a/extensions/teams/tsconfig.json b/extensions/teams/tsconfig.json
index 523f4a057..0d39545cd 100644
--- a/extensions/teams/tsconfig.json
+++ b/extensions/teams/tsconfig.json
@@ -2,7 +2,8 @@
   "compilerOptions": {
     "declaration": true,
     "target": "es2021",
-    "module": "commonjs",
+    "module": "node16",
+    "moduleResolution": "node16",
     "outDir": "./lib",
     "rootDir": "./",
     "sourceMap": true,