diff --git a/cmd/root/auth.go b/cmd/root/auth.go
index a1118b5a48..a64bb000cd 100644
--- a/cmd/root/auth.go
+++ b/cmd/root/auth.go
@@ -47,6 +47,36 @@ func profileFlagValue(cmd *cobra.Command) (string, bool) {
 	return value, value != ""
 }
 
+var explicitAuthSelectorNames = map[string]struct{}{
+	"account_id":                     {},
+	"actions_id_token_request_token": {},
+	"actions_id_token_request_url":   {},
+	"audience":                       {},
+	"auth_type":                      {},
+	"azure_environment":              {},
+	"experimental_is_unified_host":   {},
+	"host":                           {},
+	"profile":                        {},
+	"workspace_id":                   {},
+}
+
+func hasExplicitAuthEnvOverride() bool {
+	for i := range config.ConfigAttributes {
+		attr := &config.ConfigAttributes[i]
+		_, isExplicitSelector := explicitAuthSelectorNames[attr.Name]
+		if !attr.HasAuthAttribute() && !isExplicitSelector {
+			continue
+		}
+
+		value, _ := attr.ReadEnv()
+		if value != "" {
+			return true
+		}
+	}
+
+	return false
+}
+
 // Helper function to create an account client or prompt once if the given configuration is not valid.
 func accountClientOrPrompt(ctx context.Context, cfg *config.Config, allowPrompt bool) (*databricks.AccountClient, error) {
 	a, err := databricks.NewAccountClient((*databricks.Config)(cfg))
@@ -195,8 +225,9 @@ func MustWorkspaceClient(cmd *cobra.Command, args []string) error {
 	}
 
 	_, isTargetFlagSet := targetFlagValue(cmd)
-	// If the profile flag is set but the target flag is not, we should skip loading the bundle configuration.
-	if !isTargetFlagSet && hasProfileFlag {
+	// Keep bundle auth as the default in bundle context.
+	// Explicit auth configuration should override implicit bundle auth only when no target/environment is set.
+	if !isTargetFlagSet && (hasProfileFlag || hasExplicitAuthEnvOverride()) {
 		cmd.SetContext(SkipLoadBundle(cmd.Context()))
 	}
 
diff --git a/cmd/root/auth_bundle_loading_test.go b/cmd/root/auth_bundle_loading_test.go
new file mode 100644
index 0000000000..1deece48df
--- /dev/null
+++ b/cmd/root/auth_bundle_loading_test.go
@@ -0,0 +1,160 @@
+package root
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/databricks/cli/internal/testutil"
+	"github.com/databricks/cli/libs/cmdctx"
+	"github.com/spf13/cobra"
+	"github.com/stretchr/testify/require"
+)
+
+const (
+	devHost = "https://dev-environment.cloud.databricks.com"
+	stgHost = "https://stg-environment.cloud.databricks.com"
+)
+
+func newWorkspaceAuthTestCommand() *cobra.Command {
+	cmd := &cobra.Command{}
+	cmd.SetContext(context.Background())
+	initProfileFlag(cmd)
+	initTargetFlag(cmd)
+	initEnvironmentFlag(cmd)
+	return cmd
+}
+
+func setupWorkspaceAuthFixture(t *testing.T) {
+	testutil.CleanupEnvironment(t)
+
+	rootDir := t.TempDir()
+	testutil.Chdir(t, rootDir)
+
+	err := os.WriteFile(filepath.Join(rootDir, "databricks.yml"), []byte(`
+bundle:
+  name: test
+targets:
+  dev:
+    default: true
+    workspace:
+      host: https://dev-environment.cloud.databricks.com
+  stg:
+    workspace:
+      host: https://stg-environment.cloud.databricks.com
+`), 0o644)
+	require.NoError(t, err)
+
+	err = os.WriteFile(filepath.Join(rootDir, ".databrickscfg"), []byte(`
+[DEV]
+host = https://dev-environment.cloud.databricks.com
+token = dev-token
+
+[STG]
+host = https://stg-environment.cloud.databricks.com
+token = stg-token
+`), 0o644)
+	require.NoError(t, err)
+
+	t.Setenv("DATABRICKS_CONFIG_FILE", filepath.Join(rootDir, ".databrickscfg"))
+}
+
+func assertConfigUsedHost(t *testing.T, cmd *cobra.Command, expectedHost string) {
+	cfg := cmdctx.ConfigUsed(cmd.Context())
+	require.NotNil(t, cfg)
+	require.Equal(t, expectedHost, cfg.Host)
+}
+
+func TestMustWorkspaceClientUsesBundleDefaultWithoutExplicitOverride(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, devHost)
+}
+
+func TestMustWorkspaceClientIgnoresBundleWhenHostEnvIsSetWithoutTargetFlag(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	t.Setenv("DATABRICKS_HOST", stgHost)
+	t.Setenv("DATABRICKS_TOKEN", "stg-token")
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, stgHost)
+}
+
+func TestMustWorkspaceClientIgnoresBundleWhenProfileEnvIsSetWithoutTargetFlag(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	t.Setenv("DATABRICKS_CONFIG_PROFILE", "STG")
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, stgHost)
+}
+
+func TestMustWorkspaceClientUsesBundleWhenTargetFlagIsSetWithExplicitEnv(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	t.Setenv("DATABRICKS_HOST", stgHost)
+	t.Setenv("DATABRICKS_TOKEN", "stg-token")
+	t.Setenv("DATABRICKS_CONFIG_PROFILE", "DEV")
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := cmd.Flag("target").Value.Set("dev")
+	require.NoError(t, err)
+
+	err = MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, devHost)
+}
+
+func TestMustWorkspaceClientUsesBundleWhenEnvironmentFlagIsSetWithExplicitEnv(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	t.Setenv("DATABRICKS_HOST", stgHost)
+	t.Setenv("DATABRICKS_TOKEN", "stg-token")
+	t.Setenv("DATABRICKS_CONFIG_PROFILE", "DEV")
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := cmd.Flag("environment").Value.Set("dev")
+	require.NoError(t, err)
+
+	err = MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, devHost)
+}
+
+func TestMustWorkspaceClientKeepsBundleDefaultWhenOnlyNonAuthEnvIsSet(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	t.Setenv("DATABRICKS_RATE_LIMIT", "500")
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, devHost)
+}
+
+func TestMustWorkspaceClientKeepsBundleDefaultWhenOnlyCliPathEnvIsSet(t *testing.T) {
+	setupWorkspaceAuthFixture(t)
+
+	t.Setenv("DATABRICKS_CLI_PATH", "/usr/local/bin/databricks")
+
+	cmd := newWorkspaceAuthTestCommand()
+	err := MustWorkspaceClient(cmd, nil)
+	require.NoError(t, err)
+
+	assertConfigUsedHost(t, cmd, devHost)
+}