diff --git a/cloudplatform/cloudplatform-connectivity/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServiceOptions.java b/cloudplatform/cloudplatform-connectivity/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServiceOptions.java
index daf6edf89..7acb8f029 100644
--- a/cloudplatform/cloudplatform-connectivity/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServiceOptions.java
+++ b/cloudplatform/cloudplatform-connectivity/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServiceOptions.java
@@ -324,6 +324,23 @@ public static OptionsEnhancer<?> withConsumerClient( @Nonnull final String consu
             return new IasCommunicationOptions(null, null, null, consumerClientId, consumerTenantId);
         }
 
+        /**
+         * Specifies the token format to request from IAS during token exchange.
+         * <p>
+         * If not specified, the {@code token_format} parameter is not included in the token exchange request, and IAS
+         * will use its default behavior (SAML). Explicitly set to {@code "jwt"} if the target service requires JWT
+         * tokens.
+         *
+         * @param format
+         *            The token format to request. Typically {@code "jwt"} or {@code "saml"}.
+         * @return An instance of {@link OptionsEnhancer} for the token format.
+         */
+        @Nonnull
+        public static OptionsEnhancer<?> withTokenFormat( @Nonnull final String format )
+        {
+            return new TokenFormat(format);
+        }
+
         /**
          * An {@link OptionsEnhancer} that contains the target URI for an IAS-based destination. Also refer to
          * {@link #withTargetUri(String)}.
@@ -382,5 +399,18 @@ public IasCommunicationOptions getValue()
                 return this;
             }
         }
+
+        /**
+         * An {@link OptionsEnhancer} that specifies the token format for IAS token requests. If not provided, the
+         * {@code token_format} parameter is not included in the token exchange request. Also refer to
+         * {@link #withTokenFormat(String)}.
+         */
+        @Value
+        @AllArgsConstructor( access = AccessLevel.PRIVATE )
+        public static class TokenFormat implements OptionsEnhancer<String>
+        {
+            @Nonnull
+            String value;
+        }
     }
 }
diff --git a/cloudplatform/connectivity-oauth/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliers.java b/cloudplatform/connectivity-oauth/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliers.java
index 2833be740..2e112c0b5 100644
--- a/cloudplatform/connectivity-oauth/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliers.java
+++ b/cloudplatform/connectivity-oauth/src/main/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliers.java
@@ -2,6 +2,7 @@
 
 import static com.sap.cloud.sdk.cloudplatform.connectivity.BtpServiceOptions.AuthenticationServiceOptions.TargetUri;
 import static com.sap.cloud.sdk.cloudplatform.connectivity.BtpServiceOptions.IasOptions.IasCommunicationOptions;
+import static com.sap.cloud.sdk.cloudplatform.connectivity.BtpServiceOptions.IasOptions.TokenFormat;
 import static com.sap.cloud.sdk.cloudplatform.connectivity.MultiUrlPropertySupplier.REMOVE_PATH;
 
 import java.net.URI;
@@ -189,6 +190,9 @@ public OAuth2Options getOAuth2Options()
             } else {
                 attachIasCommunicationOptions(builder);
                 builder.withTokenRetrievalParameter("app_tid", getCredentialOrThrow(String.class, "app_tid"));
+                options
+                    .getOption(TokenFormat.class)
+                    .peek(format -> builder.withTokenRetrievalParameter("token_format", format));
             }
             attachClientKeyStore(builder);
 
diff --git a/cloudplatform/connectivity-oauth/src/test/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliersTest.java b/cloudplatform/connectivity-oauth/src/test/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliersTest.java
index 6afd3fef1..ae9da1462 100644
--- a/cloudplatform/connectivity-oauth/src/test/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliersTest.java
+++ b/cloudplatform/connectivity-oauth/src/test/java/com/sap/cloud/sdk/cloudplatform/connectivity/BtpServicePropertySuppliersTest.java
@@ -789,6 +789,75 @@ void testMutuallyExclusiveOptions()
             }
         }
 
+        @Test
+        void testTokenFormatExplicitJwt()
+        {
+            final ServiceBindingDestinationOptions options =
+                ServiceBindingDestinationOptions
+                    .forService(BINDING)
+                    .onBehalfOf(OnBehalfOf.NAMED_USER_CURRENT_TENANT)
+                    .withOption(IasOptions.withApplicationName("app-name"))
+                    .withOption(IasOptions.withTokenFormat("jwt"))
+                    .build();
+
+            final OAuth2PropertySupplier sut = IDENTITY_AUTHENTICATION.resolve(options);
+            final OAuth2Options oAuth2Options = sut.getOAuth2Options();
+
+            assertThat(oAuth2Options.getAdditionalTokenRetrievalParameters())
+                .containsExactlyInAnyOrderEntriesOf(
+                    Map
+                        .of(
+                            "resource",
+                            "urn:sap:identity:application:provider:name:app-name",
+                            "app_tid",
+                            PROVIDER_TENANT_ID,
+                            "token_format",
+                            "jwt"));
+        }
+
+        @Test
+        void testTokenFormatExplicitSaml()
+        {
+            final ServiceBindingDestinationOptions options =
+                ServiceBindingDestinationOptions
+                    .forService(BINDING)
+                    .onBehalfOf(OnBehalfOf.NAMED_USER_CURRENT_TENANT)
+                    .withOption(IasOptions.withApplicationName("app-name"))
+                    .withOption(IasOptions.withTokenFormat("saml"))
+                    .build();
+
+            final OAuth2PropertySupplier sut = IDENTITY_AUTHENTICATION.resolve(options);
+            final OAuth2Options oAuth2Options = sut.getOAuth2Options();
+
+            assertThat(oAuth2Options.getAdditionalTokenRetrievalParameters())
+                .containsExactlyInAnyOrderEntriesOf(
+                    Map
+                        .of(
+                            "resource",
+                            "urn:sap:identity:application:provider:name:app-name",
+                            "app_tid",
+                            PROVIDER_TENANT_ID,
+                            "token_format",
+                            "saml"));
+        }
+
+        @Test
+        void testTokenFormatWithoutApplicationName()
+        {
+            final ServiceBindingDestinationOptions options =
+                ServiceBindingDestinationOptions
+                    .forService(BINDING)
+                    .onBehalfOf(OnBehalfOf.NAMED_USER_CURRENT_TENANT)
+                    .withOption(IasOptions.withTokenFormat("jwt"))
+                    .build();
+
+            final OAuth2PropertySupplier sut = IDENTITY_AUTHENTICATION.resolve(options);
+            final OAuth2Options oAuth2Options = sut.getOAuth2Options();
+
+            assertThat(oAuth2Options.getAdditionalTokenRetrievalParameters())
+                .containsExactlyInAnyOrderEntriesOf(Map.of("app_tid", PROVIDER_TENANT_ID, "token_format", "jwt"));
+        }
+
         @SneakyThrows
         private static void assertThatClientCertificateIsContained( @Nonnull final KeyStore keyStore )
         {