diff --git a/cli/azd/internal/cmd/add/add_configure.go b/cli/azd/internal/cmd/add/add_configure.go
index f3e5ad18c0a..887b64fe2fb 100644
--- a/cli/azd/internal/cmd/add/add_configure.go
+++ b/cli/azd/internal/cmd/add/add_configure.go
@@ -3,6 +3,7 @@ package add
 import (
 	"context"
 	"fmt"
+	"github.com/azure/azure-dev/cli/azd/internal"
 	"slices"
 	"strings"
 	"unicode"
@@ -32,7 +33,7 @@ func configure(
 		return fillAiModelName(ctx, r, console, p)
 	case project.ResourceTypeDbPostgres,
 		project.ResourceTypeDbMongo:
-		return fillDatabaseName(ctx, r, console, p)
+		return fillDatabaseNameAndAuthType(ctx, r, console, p)
 	case project.ResourceTypeDbRedis:
 		if _, exists := p.prj.Resources["redis"]; exists {
 			return nil, fmt.Errorf("only one Redis resource is allowed at this time")
@@ -45,7 +46,7 @@ func configure(
 	}
 }
 
-func fillDatabaseName(
+func fillDatabaseNameAndAuthType(
 	ctx context.Context,
 	r *project.ResourceConfig,
 	console input.Console,
@@ -56,6 +57,27 @@ func fillDatabaseName(
 
 	for {
 		dbName, err := console.Prompt(ctx, input.ConsoleOptions{
+			Message: fmt.Sprintf("Input the name of the app database (%s)", r.Type.String()),
+			Help: "Hint: App database name\n\n" +
+				"Name of the database that the app connects to. " +
+				"This database will be created after running azd provision or azd up.",
+		})
+		if err != nil {
+			return r, err
+		}
+
+		if err := validateResourceName(dbName, p.prj); err != nil {
+			console.Message(ctx, err.Error())
+			continue
+		}
+
+		r.Name = dbName
+		break
+	}
+
+	// prompt for the database name
+	for {
+		databaseName, err := console.Prompt(ctx, input.ConsoleOptions{
 			Message: fmt.Sprintf("Input the databaseName for %s "+
 				"(Not databaseServerName. This url can explain the difference: "+
 				"'jdbc:mysql://databaseServerName:3306/databaseName'):", r.Type.String()),
@@ -67,18 +89,63 @@ func fillDatabaseName(
 			return r, err
 		}
 
-		if err := validateResourceName(dbName, p.prj); err != nil {
+		if err := validateResourceName(databaseName, p.prj); err != nil {
 			console.Message(ctx, err.Error())
 			continue
 		}
 
-		r.Name = dbName
+		switch r.Type {
+		case project.ResourceTypeDbPostgres:
+			modelProps, ok := r.Props.(project.PostgresProps)
+			if ok {
+				modelProps.DatabaseName = databaseName
+				r.Props = modelProps
+			}
+		case project.ResourceTypeDbMongo:
+			modelProps, ok := r.Props.(project.MongoDBProps)
+			if ok {
+				modelProps.DatabaseName = databaseName
+				r.Props = modelProps
+			}
+		}
 		break
 	}
 
+	if r.Type == project.ResourceTypeDbPostgres {
+		modelProps, ok := r.Props.(project.PostgresProps)
+		if ok {
+			authType, err := chooseAuthTypeByPrompt(r.Name, []internal.AuthType{
+				internal.AuthTypePassword, internal.AuthTypeUserAssignedManagedIdentity}, ctx, console)
+			if err != nil {
+				return r, err
+			}
+			modelProps.AuthType = authType
+			r.Props = modelProps
+		}
+	}
+
 	return r, nil
 }
 
+func chooseAuthTypeByPrompt(
+	name string,
+	authOptions []internal.AuthType,
+	ctx context.Context,
+	console input.Console) (internal.AuthType, error) {
+	var options []string
+	for _, option := range authOptions {
+		options = append(options, internal.GetAuthTypeDescription(option))
+	}
+	selection, err := console.Select(ctx, input.ConsoleOptions{
+		Message: "Choose auth type for " + name + ":",
+		Options: options,
+	})
+	if err != nil {
+		return internal.AuthTypeUnspecified, err
+	}
+	return authOptions[selection], nil
+}
+
 func fillAiModelName(
 	ctx context.Context,
 	r *project.ResourceConfig,
diff --git a/cli/azd/internal/cmd/add/add_select.go b/cli/azd/internal/cmd/add/add_select.go
index 015be1d271b..14957093aef 100644
--- a/cli/azd/internal/cmd/add/add_select.go
+++ b/cli/azd/internal/cmd/add/add_select.go
@@ -54,5 +54,11 @@ func selectDatabase(
 	}
 
 	r.Type = resourceTypesDisplayMap[resourceTypesDisplay[dbOption]]
+	switch r.Type {
+	case project.ResourceTypeDbPostgres:
+		r.Props = project.PostgresProps{}
+	case project.ResourceTypeDbMongo:
+		r.Props = project.MongoDBProps{}
+	}
 	return r, nil
 }
diff --git a/cli/azd/internal/scaffold/scaffold_test.go b/cli/azd/internal/scaffold/scaffold_test.go
index d5a7dc212fb..baacaf13981 100644
--- a/cli/azd/internal/scaffold/scaffold_test.go
+++ b/cli/azd/internal/scaffold/scaffold_test.go
@@ -2,6 +2,7 @@ package scaffold
 
 import (
 	"context"
+	"github.com/azure/azure-dev/cli/azd/internal"
 	"os"
 	"path/filepath"
 	"strings"
@@ -168,6 +169,29 @@ func TestExecInfra(t *testing.T) {
 				},
 			},
 		},
+		// with azd add, users could add only mongo resource
+		{
+			"Only Mongo",
+			InfraSpec{
+				DbCosmosMongo: &DatabaseCosmosMongo{},
+			},
+		},
+		// with azd add, users could add only redis resource
+		{
+			"Only Redis",
+			InfraSpec{
+				DbRedis: &DatabaseRedis{},
+			},
+		},
+		// with azd add, users could add only postgresql resource
+		{
+			"Only Postgres",
+			InfraSpec{
+				DbPostgres: &DatabasePostgres{
+					AuthType: internal.AuthTypeUserAssignedManagedIdentity,
+				},
+			},
+		},
 	}
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
diff --git a/cli/azd/resources/scaffold/templates/resources.bicept b/cli/azd/resources/scaffold/templates/resources.bicept
index 7cc9db9d53d..8997db4c67e 100644
--- a/cli/azd/resources/scaffold/templates/resources.bicept
+++ b/cli/azd/resources/scaffold/templates/resources.bicept
@@ -171,6 +171,7 @@ module postgreServer 'br/public:avm/res/db-for-postgre-sql/flexible-server:0.1.4
     skuName: 'Standard_B1ms'
     tier: 'Burstable'
     // Non-required parameters
+    tags: tags
     administratorLogin: postgreSqlDatabaseUser
     administratorLoginPassword: postgreSqlDatabasePassword
     geoRedundantBackup: 'Disabled'
@@ -195,6 +196,11 @@ module postgreServer 'br/public:avm/res/db-for-postgre-sql/flexible-server:0.1.4
         principalType: 'ServicePrincipal'
         roleDefinitionIdOrName: 'b24988ac-6180-42a0-ab88-20f7382dd24c'
       }
+      {
+        principalId: principalId
+        principalType: 'ServicePrincipal'
+        roleDefinitionIdOrName: 'b24988ac-6180-42a0-ab88-20f7382dd24c'
+      }
     ]
     {{- end}}
   }
@@ -704,7 +710,7 @@ module redisConn './modules/set-redis-conn.bicep' = {
 }
 {{- end}}
 
-{{- if .Services}}
+{{- if (or .Services .DbCosmosMongo .DbRedis)}}
 // Create a keyvault to store secrets
 module keyVault 'br/public:avm/res/key-vault/vault:0.6.1' = {
   name: 'keyvault'