diff --git a/prowler/CHANGELOG.md b/prowler/CHANGELOG.md
index 7ee85b6607..286322a155 100644
--- a/prowler/CHANGELOG.md
+++ b/prowler/CHANGELOG.md
@@ -49,6 +49,7 @@ All notable changes to the **Prowler SDK** are documented in this file.
 ### Fixed
 - Check `check_name` has no `resource_name` error for GCP provider [(#9169)](https://github.com/prowler-cloud/prowler/pull/9169)
 - Depth Truncation and parsing error in PowerShell queries [(#9181)](https://github.com/prowler-cloud/prowler/pull/9181)
+- Fix M365 Teams `--sp-env-auth` connection error and enhanced timeout logging [(#9191)](https://github.com/prowler-cloud/prowler/pull/9191)
 
 ---
 
diff --git a/prowler/providers/m365/lib/powershell/m365_powershell.py b/prowler/providers/m365/lib/powershell/m365_powershell.py
index e3d729275f..797fd667ce 100644
--- a/prowler/providers/m365/lib/powershell/m365_powershell.py
+++ b/prowler/providers/m365/lib/powershell/m365_powershell.py
@@ -1,5 +1,4 @@
 import os
-from typing import Optional
 
 from prowler.lib.logger import logger
 from prowler.lib.powershell.powershell import PowerShellSession
@@ -7,12 +6,11 @@ from prowler.providers.m365.exceptions.exceptions import (
     M365CertificateCreationError,
     M365GraphConnectionError,
 )
-from prowler.providers.m365.lib.jwt.jwt_decoder import decode_jwt, decode_msal_token
+from prowler.providers.m365.lib.jwt.jwt_decoder import decode_msal_token
 from prowler.providers.m365.models import M365Credentials, M365IdentityInfo
 
 
 class M365PowerShell(PowerShellSession):
-    CONNECT_TIMEOUT = 15
     """
     Microsoft 365 specific PowerShell session management implementation.
 
@@ -125,9 +123,7 @@ class M365PowerShell(PowerShellSession):
                 '$graphToken = Invoke-RestMethod -Uri "https://login.microsoftonline.com/$tenantID/oauth2/v2.0/token" -Method POST -Body $graphtokenBody | Select-Object -ExpandProperty Access_Token'
             )
 
-    def _execute_connect_command(
-        self, command: str, timeout: Optional[int] = None
-    ) -> str:
+    def execute_connect(self, command: str) -> str:
         """
         Execute a PowerShell connect command ensuring empty responses surface as timeouts.
 
@@ -138,9 +134,9 @@ class M365PowerShell(PowerShellSession):
         Returns:
             str: Command output or 'Timeout' if the command produced no output.
         """
-        effective_timeout = timeout or self.CONNECT_TIMEOUT
-        result = self.execute(command, timeout=effective_timeout)
-        return result or "Timeout"
+        connect_timeout = 15
+        result = self.execute(command, timeout=connect_timeout)
+        return result or "'execute_connect' command timeout reached"
 
     def test_credentials(self, credentials: M365Credentials) -> bool:
         """
@@ -207,7 +203,7 @@ class M365PowerShell(PowerShellSession):
 
     def test_graph_certificate_connection(self) -> bool:
         """Test Microsoft Graph API connection using certificate and raise exception if it fails."""
-        result = self._execute_connect_command(
+        result = self.execute_connect(
             "Connect-Graph -Certificate $certificate -AppId $clientID -TenantId $tenantID"
         )
         if "Welcome to Microsoft Graph!" not in result:
@@ -221,18 +217,13 @@ class M365PowerShell(PowerShellSession):
             self.execute(
                 '$teamstokenBody = @{ Grant_Type = "client_credentials"; Scope = "48ac35b8-9aa8-4d74-927d-1f4a14a0b239/.default"; Client_Id = $clientID; Client_Secret = $clientSecret }'
             )
-            self.execute(
+            result = self.execute(
                 '$teamsToken = Invoke-RestMethod -Uri "https://login.microsoftonline.com/$tenantID/oauth2/v2.0/token" -Method POST -Body $teamstokenBody | Select-Object -ExpandProperty Access_Token'
             )
-            permissions = decode_jwt(self.execute("Write-Output $teamsToken")).get(
-                "roles", []
-            )
-            if "application_access" not in permissions:
-                logger.error(
-                    "Microsoft Teams connection failed: Please check your permissions and try again."
-                )
+            if result != "":
+                logger.error(f"Microsoft Teams connection failed: {result}")
                 return False
-            self._execute_connect_command(
+            self.execute_connect(
                 'Connect-MicrosoftTeams -AccessTokens @("$graphToken","$teamsToken")'
             )
             return True
@@ -244,7 +235,7 @@ class M365PowerShell(PowerShellSession):
 
     def test_teams_certificate_connection(self) -> bool:
         """Test Microsoft Teams API connection using certificate and raise exception if it fails."""
-        result = self._execute_connect_command(
+        result = self.execute_connect(
             "Connect-MicrosoftTeams -Certificate $certificate -ApplicationId $clientID -TenantId $tenantID"
         )
         if self.tenant_identity.identity_id not in result:
@@ -268,9 +259,8 @@ class M365PowerShell(PowerShellSession):
                     "Exchange Online connection failed: Please check your permissions and try again."
                 )
                 return False
-            self._execute_connect_command(
-                'Connect-ExchangeOnline -AccessToken $exchangeToken.AccessToken -Organization "$tenantID"',
-                timeout=self.CONNECT_TIMEOUT,
+            self.execute_connect(
+                'Connect-ExchangeOnline -AccessToken $exchangeToken.AccessToken -Organization "$tenantID"'
             )
             return True
         except Exception as e:
@@ -281,9 +271,8 @@ class M365PowerShell(PowerShellSession):
 
     def test_exchange_certificate_connection(self) -> bool:
         """Test Exchange Online API connection using certificate and raise exception if it fails."""
-        result = self._execute_connect_command(
-            "Connect-ExchangeOnline -Certificate $certificate -AppId $clientID -Organization $tenantDomain",
-            timeout=self.CONNECT_TIMEOUT,
+        result = self.execute_connect(
+            "Connect-ExchangeOnline -Certificate $certificate -AppId $clientID -Organization $tenantDomain"
         )
         if "https://aka.ms/exov3-module" not in result:
             logger.error(f"Exchange Online Certificate connection failed: {result}")
diff --git a/tests/providers/m365/lib/powershell/m365_powershell_test.py b/tests/providers/m365/lib/powershell/m365_powershell_test.py
index 8d37b6c095..28b09768c3 100644
--- a/tests/providers/m365/lib/powershell/m365_powershell_test.py
+++ b/tests/providers/m365/lib/powershell/m365_powershell_test.py
@@ -547,8 +547,7 @@ class Testm365PowerShell:
         session.close()
 
     @patch("subprocess.Popen")
-    @patch("prowler.providers.m365.lib.powershell.m365_powershell.decode_jwt")
-    def test_test_teams_connection_success(self, mock_decode_jwt, mock_popen):
+    def test_test_teams_connection_success(self, mock_popen):
         """Test test_teams_connection when token is valid"""
         mock_process = MagicMock()
         mock_popen.return_value = mock_process
@@ -567,30 +566,20 @@ class Testm365PowerShell:
         )
         session = M365PowerShell(credentials, identity)
 
-        # Mock execute to return valid responses
-        def mock_execute(command, *args, **kwargs):
-            if "Write-Output $teamsToken" in command:
-                return "valid_teams_token"
-            return None
-
-        session.execute = MagicMock(side_effect=mock_execute)
-        # Mock JWT decode to return proper permissions
-        mock_decode_jwt.return_value = {"roles": ["application_access"]}
+        session.execute = MagicMock(side_effect=[None, ""])
+        session.execute_connect = MagicMock(return_value="")
 
         result = session.test_teams_connection()
 
         assert result is True
-        # Verify all expected PowerShell commands were called
-        # 4 calls: teamstokenBody, teamsToken, Write-Output $teamsToken, Connect-MicrosoftTeams
-        assert session.execute.call_count == 4
-        mock_decode_jwt.assert_called_once_with("valid_teams_token")
+        assert session.execute.call_count == 2
+        session.execute_connect.assert_called_once_with(
+            'Connect-MicrosoftTeams -AccessTokens @("$graphToken","$teamsToken")'
+        )
         session.close()
 
     @patch("subprocess.Popen")
-    @patch("prowler.providers.m365.lib.powershell.m365_powershell.decode_jwt")
-    def test_test_teams_connection_missing_permissions(
-        self, mock_decode_jwt, mock_popen
-    ):
+    def test_test_teams_connection_missing_permissions(self, mock_popen):
         """Test test_teams_connection when token lacks required permissions"""
         mock_process = MagicMock()
         mock_popen.return_value = mock_process
@@ -609,23 +598,17 @@ class Testm365PowerShell:
         )
         session = M365PowerShell(credentials, identity)
 
-        # Mock execute to return valid token but decode returns no permissions
-        def mock_execute(command, *args, **kwargs):
-            if "Write-Output $teamsToken" in command:
-                return "valid_teams_token"
-            return None
-
-        session.execute = MagicMock(side_effect=mock_execute)
-        # Mock JWT decode to return missing required permission
-        mock_decode_jwt.return_value = {"roles": ["other_permission"]}
+        session.execute = MagicMock(side_effect=[None, "Permission denied"])
+        session.execute_connect = MagicMock()
 
         with patch("prowler.lib.logger.logger.error") as mock_error:
             result = session.test_teams_connection()
 
         assert result is False
         mock_error.assert_called_once_with(
-            "Microsoft Teams connection failed: Please check your permissions and try again."
+            "Microsoft Teams connection failed: Permission denied"
         )
+        session.execute_connect.assert_not_called()
         session.close()
 
     @patch("subprocess.Popen")
@@ -688,15 +671,17 @@ class Testm365PowerShell:
             return None
 
         session.execute = MagicMock(side_effect=mock_execute)
+        session.execute_connect = MagicMock(return_value=None)
         # Mock MSAL token decode to return proper permissions
         mock_decode_msal_token.return_value = {"roles": ["Exchange.ManageAsApp"]}
 
         result = session.test_exchange_connection()
 
         assert result is True
-        # Verify all expected PowerShell commands were called
-        # 4 calls: SecureSecret, exchangeToken, Write-Output $exchangeToken, Connect-ExchangeOnline
-        assert session.execute.call_count == 4
+        assert session.execute.call_count == 3
+        session.execute_connect.assert_called_once_with(
+            'Connect-ExchangeOnline -AccessToken $exchangeToken.AccessToken -Organization "$tenantID"'
+        )
         mock_decode_msal_token.assert_called_once_with("valid_exchange_token")
         session.close()
 
@@ -730,6 +715,7 @@ class Testm365PowerShell:
             return None
 
         session.execute = MagicMock(side_effect=mock_execute)
+        session.execute_connect = MagicMock(return_value=None)
         # Mock MSAL token decode to return missing required permission
         mock_decode_msal_token.return_value = {"roles": ["other_permission"]}
 
@@ -737,6 +723,7 @@ class Testm365PowerShell:
             result = session.test_exchange_connection()
 
         assert result is False
+        session.execute_connect.assert_not_called()
         mock_error.assert_called_once_with(
             "Exchange Online connection failed: Please check your permissions and try again."
         )
@@ -781,7 +768,7 @@ class Testm365PowerShell:
         mock_popen.return_value = mock_process
 
         credentials = M365Credentials()
-        identity = M365IdentityInfo()
+        identity = M365IdentityInfo(identity_id="expected-id")
         session = M365PowerShell(credentials, identity)
 
         # Test with clean base64 content
@@ -924,20 +911,18 @@ class Testm365PowerShell:
         mock_popen.return_value = mock_process
 
         credentials = M365Credentials()
-        identity = M365IdentityInfo()
+        identity = M365IdentityInfo(identity_id="expected-id")
         session = M365PowerShell(credentials, identity)
 
-        # Mock successful Exchange connection
-        session.execute = MagicMock(
+        session.execute_connect = MagicMock(
             return_value="Connected successfully https://aka.ms/exov3-module"
         )
 
         result = session.test_exchange_certificate_connection()
         assert result is True
 
-        session.execute.assert_called_once_with(
-            "Connect-ExchangeOnline -Certificate $certificate -AppId $clientID -Organization $tenantDomain",
-            timeout=M365PowerShell.CONNECT_TIMEOUT,
+        session.execute_connect.assert_called_once_with(
+            "Connect-ExchangeOnline -Certificate $certificate -AppId $clientID -Organization $tenantDomain"
         )
 
         session.close()
@@ -949,20 +934,23 @@ class Testm365PowerShell:
         mock_popen.return_value = mock_process
 
         credentials = M365Credentials()
-        identity = M365IdentityInfo()
+        identity = M365IdentityInfo(identity_id="expected-id")
         session = M365PowerShell(credentials, identity)
 
-        # Mock failed Exchange connection
-        session.execute = MagicMock(
+        session.execute_connect = MagicMock(
             return_value="Connection failed: Authentication error"
         )
 
-        result = session.test_exchange_certificate_connection()
+        with patch("prowler.lib.logger.logger.error") as mock_error:
+            result = session.test_exchange_certificate_connection()
+
         assert result is False
 
-        session.execute.assert_called_once_with(
-            "Connect-ExchangeOnline -Certificate $certificate -AppId $clientID -Organization $tenantDomain",
-            timeout=M365PowerShell.CONNECT_TIMEOUT,
+        session.execute_connect.assert_called_once_with(
+            "Connect-ExchangeOnline -Certificate $certificate -AppId $clientID -Organization $tenantDomain"
+        )
+        mock_error.assert_called_once_with(
+            "Exchange Online Certificate connection failed: Connection failed: Authentication error"
         )
 
         session.close()
@@ -981,20 +969,15 @@ class Testm365PowerShell:
             session = M365PowerShell(credentials, identity)
 
         # Mock successful Teams connection - the method returns bool
-        def mock_execute_side_effect(command, *_, **__):
-            if "Connect-MicrosoftTeams" in command:
-                # Return result that contains the identity_id for success
-                return "Connected successfully test_identity_id"
-            return ""
-
-        session.execute = MagicMock(side_effect=mock_execute_side_effect)
+        session.execute_connect = MagicMock(
+            return_value="Connected successfully test_identity_id"
+        )
 
         result = session.test_teams_certificate_connection()
         assert result is True
 
-        session.execute.assert_called_once_with(
-            "Connect-MicrosoftTeams -Certificate $certificate -ApplicationId $clientID -TenantId $tenantID",
-            timeout=M365PowerShell.CONNECT_TIMEOUT,
+        session.execute_connect.assert_called_once_with(
+            "Connect-MicrosoftTeams -Certificate $certificate -ApplicationId $clientID -TenantId $tenantID"
         )
 
         session.close()
@@ -1006,22 +989,21 @@ class Testm365PowerShell:
         mock_popen.return_value = mock_process
 
         credentials = M365Credentials()
-        identity = M365IdentityInfo()
+        identity = M365IdentityInfo(identity_id="expected-id")
         session = M365PowerShell(credentials, identity)
 
-        # Mock failed Teams connection
-        def mock_execute_side_effect(command, **kwargs):
-            if "Connect-MicrosoftTeams" in command:
-                raise Exception("Connection failed: Authentication error")
-            return ""
+        session.execute_connect = MagicMock(return_value="Connection failed")
 
-        session.execute = MagicMock(side_effect=mock_execute_side_effect)
+        with patch("prowler.lib.logger.logger.error") as mock_error:
+            result = session.test_teams_certificate_connection()
 
-        # Should raise exception on connection failure
-        with pytest.raises(Exception) as exc_info:
-            session.test_teams_certificate_connection()
-
-        assert "Connection failed: Authentication error" in str(exc_info.value)
+        assert result is False
+        session.execute_connect.assert_called_once_with(
+            "Connect-MicrosoftTeams -Certificate $certificate -ApplicationId $clientID -TenantId $tenantID"
+        )
+        mock_error.assert_called_once_with(
+            "Microsoft Teams Certificate connection failed: Connection failed"
+        )
 
         session.close()