diff --git a/NEXT_CHANGELOG.md b/NEXT_CHANGELOG.md
index cffb802d6..ee1d5ee71 100644
--- a/NEXT_CHANGELOG.md
+++ b/NEXT_CHANGELOG.md
@@ -4,9 +4,10 @@
 
 ### New Features and Improvements
 
-* Add native support for authentication through Azure DevOps OIDC
+* Add native support for authentication through Azure DevOps OIDC.
 
 ### Bug Fixes
+* Fix a security issue that resulted in bearer tokens being logged in exception messages.
 
 ### Documentation
 
diff --git a/databricks/sdk/_base_client.py b/databricks/sdk/_base_client.py
index 5af684cb6..33dbd17c9 100644
--- a/databricks/sdk/_base_client.py
+++ b/databricks/sdk/_base_client.py
@@ -99,7 +99,10 @@ def __init__(
         # Default to 60 seconds
         self._http_timeout_seconds = http_timeout_seconds or 60
 
-        self._error_parser = _Parser(extra_error_customizers=extra_error_customizers)
+        self._error_parser = _Parser(
+            extra_error_customizers=extra_error_customizers,
+            debug_headers=debug_headers,
+        )
 
     def _authenticate(self, r: requests.PreparedRequest) -> requests.PreparedRequest:
         if self._header_factory:
diff --git a/databricks/sdk/errors/parser.py b/databricks/sdk/errors/parser.py
index 64d83de05..2fefc4e2f 100644
--- a/databricks/sdk/errors/parser.py
+++ b/databricks/sdk/errors/parser.py
@@ -31,12 +31,15 @@
 ]
 
 
-def _unknown_error(response: requests.Response) -> str:
+def _unknown_error(response: requests.Response, debug_headers: bool = False) -> str:
     """A standard error message that can be shown when an API response cannot be parsed.
 
     This error message includes a link to the issue tracker for the SDK for users to report the issue to us.
+
+    :param response: The response object from the API request.
+    :param debug_headers: Whether to include headers in the request log. Defaults to False to defensively handle cases where request headers might contain sensitive data (e.g. tokens).
     """
-    request_log = RoundTrip(response, debug_headers=True, debug_truncate_bytes=10 * 1024).generate()
+    request_log = RoundTrip(response, debug_headers=debug_headers, debug_truncate_bytes=10 * 1024).generate()
     return (
         "This is likely a bug in the Databricks SDK for Python or the underlying "
         "API. Please report this issue with the following debugging information to the SDK issue tracker at "
@@ -56,11 +59,13 @@ def __init__(
         self,
         extra_error_parsers: List[_ErrorDeserializer] = [],
         extra_error_customizers: List[_ErrorCustomizer] = [],
+        debug_headers: bool = False,
     ):
         self._error_parsers = _error_deserializers + (extra_error_parsers if extra_error_parsers is not None else [])
         self._error_customizers = _error_customizers + (
             extra_error_customizers if extra_error_customizers is not None else []
         )
+        self._debug_headers = debug_headers
 
     def get_api_error(self, response: requests.Response) -> Optional[DatabricksError]:
         """
@@ -84,7 +89,7 @@ def get_api_error(self, response: requests.Response) -> Optional[DatabricksError
                     )
             return _error_mapper(
                 response,
-                {"message": "unable to parse response. " + _unknown_error(response)},
+                {"message": "unable to parse response. " + _unknown_error(response, self._debug_headers)},
             )
 
         # Private link failures happen via a redirect to the login page. From a requests-perspective, the request
diff --git a/tests/test_errors.py b/tests/test_errors.py
index e0032900f..57e045c3a 100644
--- a/tests/test_errors.py
+++ b/tests/test_errors.py
@@ -371,3 +371,47 @@ def test_get_api_error(test_case: TestCase):
     assert isinstance(e.value, test_case.want_err_type)
     assert str(e.value) == test_case.want_message
     assert e.value.get_error_details() == test_case.want_details
+
+
+def test_debug_headers_disabled_by_default():
+    """Test that debug_headers=False by default does not leak sensitive headers in unparseable errors."""
+    # Create a response with Authorization header that cannot be parsed.
+    resp = requests.Response()
+    resp.status_code = 400
+    resp.reason = "Bad Request"
+    resp.request = requests.Request("POST", "https://databricks.com/api/2.0/sql/statements").prepare()
+    resp.request.headers["Authorization"] = "Bearer secret-token-12345"
+    resp.request.headers["X-Databricks-Azure-SP-Management-Token"] = "secret-azure-token-67890"
+    resp._content = b"unparseable response"
+
+    parser = errors._Parser(debug_headers=False)
+    error = parser.get_api_error(resp)
+
+    error_message = str(error)
+    # Verify that sensitive tokens are NOT in the error message.
+    assert "secret-token-12345" not in error_message
+    assert "secret-azure-token-67890" not in error_message
+    assert "Authorization" not in error_message
+    assert "X-Databricks-Azure-SP-Management-Token" not in error_message
+
+
+def test_debug_headers_enabled_shows_headers():
+    """Test that debug_headers=True includes headers in unparseable error messages."""
+    # Create a response with Authorization header that cannot be parsed.
+    resp = requests.Response()
+    resp.status_code = 400
+    resp.reason = "Bad Request"
+    resp.request = requests.Request("POST", "https://databricks.com/api/2.0/sql/statements").prepare()
+    resp.request.headers["Authorization"] = "Bearer debug-token-12345"
+    resp.request.headers["X-Databricks-Azure-SP-Management-Token"] = "debug-azure-token-67890"
+    resp._content = b"unparseable response"
+
+    parser = errors._Parser(debug_headers=True)
+    error = parser.get_api_error(resp)
+
+    error_message = str(error)
+    # Verify that headers ARE included when explicitly enabled.
+    assert "Authorization" in error_message
+    assert "debug-token-12345" in error_message
+    assert "X-Databricks-Azure-SP-Management-Token" in error_message
+    assert "debug-azure-token-67890" in error_message