diff --git a/NEWS.md b/NEWS.md
index 9d20db3..b620940 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -7,6 +7,11 @@
 * No longer install 'rpy2' by default. It will prompt user for installation
 the first time `spark_apply()` is called (#125)
 
+* Adding support for Databricks serverless interactive compute (#127)
+
+* Extended authentication method support for Databricks by deferring to SDK
+(#127)
+
 # pysparklyr 0.1.5
 
 ### Improvements
diff --git a/R/databricks-utils.R b/R/databricks-utils.R
index 57eb233..eab2206 100644
--- a/R/databricks-utils.R
+++ b/R/databricks-utils.R
@@ -27,6 +27,10 @@ databricks_host <- function(host = NULL, fail = TRUE) {
 }
 
 databricks_token <- function(token = NULL, fail = FALSE) {
+  # if token provided, return
+  # otherwise, search for token:
+  # DATABRICKS_TOKEN > CONNECT_DATABRICKS_TOKEN > .rs.api.getDatabricksToken
+
   if (!is.null(token)) {
     return(set_names(token, "argument"))
   }
@@ -53,7 +57,6 @@ databricks_token <- function(token = NULL, fail = FALSE) {
         paste0(
           "No authentication token was identified: \n",
           " - No 'DATABRICKS_TOKEN' environment variable found \n",
-          " - No Databricks OAuth token found \n",
           " - Not passed as a function argument"
         ),
         "Please add your Token to 'DATABRICKS_TOKEN' inside your .Renviron file."
@@ -66,15 +69,13 @@ databricks_token <- function(token = NULL, fail = FALSE) {
 }
 
 databricks_dbr_version_name <- function(cluster_id,
-                                        host = NULL,
-                                        token = NULL,
+                                        client,
                                         silent = FALSE) {
   bullets <- NULL
   version <- NULL
   cluster_info <- databricks_dbr_info(
     cluster_id = cluster_id,
-    host = host,
-    token = token,
+    client = client,
     silent = silent
   )
   cluster_name <- substr(cluster_info$cluster_name, 1, 100)
@@ -96,8 +97,7 @@ databricks_extract_version <- function(x) {
 }
 
 databricks_dbr_info <- function(cluster_id,
-                                host = NULL,
-                                token = NULL,
+                                client,
                                 silent = FALSE) {
   cli_div(theme = cli_colors())
 
@@ -109,10 +109,10 @@ databricks_dbr_info <- function(cluster_id,
     )
   }
 
-  out <- databricks_cluster_get(cluster_id, host, token)
+  out <- databricks_cluster_get(cluster_id, client)
   if (inherits(out, "try-error")) {
-    sanitized <- sanitize_host(host, silent)
-    out <- databricks_cluster_get(cluster_id, sanitized, token)
+    # sanitized <- sanitize_host(host, silent)
+    out <- databricks_cluster_get(cluster_id, client)
   }
 
   if (inherits(out, "try-error")) {
@@ -159,30 +159,17 @@ databricks_dbr_info <- function(cluster_id,
   out
 }
 
-databricks_dbr_version <- function(cluster_id,
-                                   host = NULL,
-                                   token = NULL) {
+databricks_dbr_version <- function(cluster_id, client) {
   vn <- databricks_dbr_version_name(
     cluster_id = cluster_id,
-    host = host,
-    token = token
+    client = client
   )
   vn$version
 }
 
-databricks_cluster_get <- function(cluster_id,
-                                   host = NULL,
-                                   token = NULL) {
+databricks_cluster_get <- function(cluster_id, client) {
   try(
-    paste0(
-      host,
-      "/api/2.0/clusters/get"
-    ) %>%
-      request() %>%
-      req_auth_bearer_token(token) %>%
-      req_body_json(list(cluster_id = cluster_id)) %>%
-      req_perform() %>%
-      resp_body_json(),
+    client$clusters$get(cluster_id = cluster_id)$as_dict(),
     silent = TRUE
   )
 }
@@ -227,25 +214,39 @@ databricks_dbr_error <- function(error) {
   )
 }
 
-sanitize_host <- function(url, silent = FALSE) {
-  parsed_url <- url_parse(url)
-  new_url <- url_parse("http://localhost")
-  if (is.null(parsed_url$scheme)) {
-    new_url$scheme <- "https"
-    if (!is.null(parsed_url$path) && is.null(parsed_url$hostname)) {
-      new_url$hostname <- parsed_url$path
-    }
-  } else {
-    new_url$scheme <- parsed_url$scheme
-    new_url$hostname <- parsed_url$hostname
+# from httr2
+is_hosted_session <- function () {
+  if (nzchar(Sys.getenv("COLAB_RELEASE_TAG"))) {
+    return(TRUE)
   }
-  ret <- url_build(new_url)
-  if (ret != url && !silent) {
-    cli_div(theme = cli_colors())
-    cli_alert_warning(
-      "{.header Changing host URL to:} {.emph {ret}}"
+  Sys.getenv("RSTUDIO_PROGRAM_MODE") == "server" &&
+    !grepl("localhost", Sys.getenv("RSTUDIO_HTTP_REFERER"), fixed = TRUE)
+}
+
+databricks_desktop_login <- function(host = NULL, profile = NULL) {
+
+  # host takes priority over profile
+  if (!is.null(host)) {
+    method <- "--host"
+    value <- host
+  } else if (!is.null(profile)) {
+    method <- "--profile"
+    value <- profile
+  } else {
+    # todo rlang error?
+    stop("must specifiy `host` or `profile`, neither were set")
+  }
+
+  cli_path <- Sys.getenv("DATABRICKS_CLI_PATH", "databricks")
+  if (!is_hosted_session() && nchar(Sys.which(cli_path)) != 0) {
+    # When on desktop, try using the Databricks CLI for auth.
+    output <- suppressWarnings(
+      system2(
+        cli_path,
+        c("auth", "login", method, value),
+        stdout = TRUE,
+        stderr = TRUE
+      )
     )
-    cli_end()
   }
-  ret
 }
diff --git a/R/deploy.R b/R/deploy.R
index c99a98c..1e53bdc 100644
--- a/R/deploy.R
+++ b/R/deploy.R
@@ -52,6 +52,7 @@ deploy_databricks <- function(
 
   cluster_id <- cluster_id %||% Sys.getenv("DATABRICKS_CLUSTER_ID")
 
+  # TODO: this needs to be adjusted to use client, might need to refactor?
   if (is.null(version) && !is.null(cluster_id)) {
     version <- databricks_dbr_version(
       cluster_id = cluster_id,
diff --git a/R/python-install.R b/R/python-install.R
index 0fafe49..3351488 100644
--- a/R/python-install.R
+++ b/R/python-install.R
@@ -217,7 +217,8 @@ install_environment <- function(
     "PyArrow",
     "grpcio",
     "google-api-python-client",
-    "grpcio_status"
+    "grpcio_status",
+    "databricks-sdk"
   )
 
   if (add_torch && install_ml) {
diff --git a/R/sparklyr-spark-connect.R b/R/sparklyr-spark-connect.R
index 753c0d9..b1e1a3f 100644
--- a/R/sparklyr-spark-connect.R
+++ b/R/sparklyr-spark-connect.R
@@ -63,32 +63,19 @@ spark_connect_method.spark_method_databricks_connect <- function(
     ...) {
   args <- list(...)
   cluster_id <- args$cluster_id
+  serverless <- args$serverless %||% FALSE
+  profile <- args$profile %||% NULL
   token <- args$token
   envname <- args$envname
   host_sanitize <- args$host_sanitize %||% TRUE
   silent <- args$silent %||% FALSE
 
   method <- method[[1]]
+
   token <- databricks_token(token, fail = FALSE)
   cluster_id <- cluster_id %||% Sys.getenv("DATABRICKS_CLUSTER_ID")
-  master <- databricks_host(master, fail = FALSE)
-  if (host_sanitize && master != "") {
-    master <- sanitize_host(master, silent)
-  }
-
-  cluster_info <- NULL
-  if (cluster_id != "" && master != "" && token != "") {
-    cluster_info <- databricks_dbr_version_name(
-      cluster_id = cluster_id,
-      host = master,
-      token = token,
-      silent = silent
-    )
-    if (is.null(version)) {
-      version <- cluster_info$version
-    }
-  }
 
+  # load python env
   envname <- use_envname(
     backend = "databricks",
     version = version,
@@ -102,16 +89,71 @@ spark_connect_method.spark_method_databricks_connect <- function(
     return(invisible)
   }
 
-  db <- import_check("databricks.connect", envname, silent)
+  # load python libs
+  dbc <- import_check("databricks.connect", envname, silent)
+  db_sdk <- import_check("databricks.sdk", envname, silent = TRUE)
+
+  # SDK behaviour
+  # https://databricks-sdk-py.readthedocs.io/en/latest/authentication.html#default-authentication-flow
+
+  conf_args <- list()
+
+  # the profile as specified - which has a default of 'DEFAULT'
+  # otherwise, if a token is found, propagate to SDK config
+
+  # TODO: emit messages about connection here?
+  # specific vars taken priority, profile only works when no env vars are set
+  if (token != "" && master != "") {
+    conf_args$host <-  master
+    conf_args$token <- token
+    conf_args$auth_type <- "pat"
+    databricks_desktop_login(host = master)
+  } else if (!is.null(profile)) {
+    conf_args$profile <- profile
+    databricks_desktop_login(profile = profile)
+  }
+
+  # serverless config related settings
+  if (serverless) {
+    conf_args$serverless_compute_id <- "auto"
+  } else {
+    conf_args$cluster_id <- cluster_id
+  }
+
+  sdk_config <- db_sdk$core$Config(!!!conf_args)
+
+  # create workspace client
+  sdk_client <- db_sdk$WorkspaceClient(config = sdk_config)
+
+  # if serverless is TRUE, cluster_id is overruled (set to NULL)
+  cluster_info <- NULL
+  if (!serverless) {
+    if (cluster_id != "" && master != "" && token != "") {
+      cluster_info <- databricks_dbr_version_name(
+        cluster_id = cluster_id,
+        client = sdk_client,
+        silent = silent
+      )
+      if (is.null(version)) {
+        version <- cluster_info$version
+      }
+    }
+  } else {
+    cluster_id <- NULL
+  }
 
   if (!is.null(cluster_info)) {
     msg <- "{.header Connecting to} {.emph '{cluster_info$name}'}"
     msg_done <- "{.header Connected to:} {.emph '{cluster_info$name}'}"
     master_label <- glue("{cluster_info$name} ({cluster_id})")
-  } else {
+  } else if (!serverless) {
     msg <- "{.header Connecting to} {.emph '{cluster_id}'}"
     msg_done <- "{.header Connected to:} '{.emph '{cluster_id}'}'"
     master_label <- glue("Databricks Connect - Cluster: {cluster_id}")
+  } else if (serverless) {
+    msg <- "{.header Connecting to} {.emph serverless}"
+    msg_done <- "{.header Connected to:} '{.emph serverless}'"
+    master_label <- glue("Databricks Connect - Cluster: serverless")
   }
 
   if (!silent) {
@@ -119,17 +161,8 @@ spark_connect_method.spark_method_databricks_connect <- function(
     cli_progress_step(msg, msg_done)
   }
 
-  remote_args <- list()
-  if (master != "") remote_args$host <- master
-  if (token != "") remote_args$token <- token
-  if (cluster_id != "") remote_args$cluster_id <- cluster_id
-
-  databricks_session <- function(...) {
-    user_agent <- build_user_agent()
-    db$DatabricksSession$builder$remote(...)$userAgent(user_agent)
-  }
-
-  conn <- exec(databricks_session, !!!remote_args)
+  user_agent <- build_user_agent()
+  conn <- dbc$DatabricksSession$builder$sdkConfig(sdk_config)$userAgent(user_agent)
 
   if (!silent) {
     cli_progress_done()
@@ -141,6 +174,7 @@ spark_connect_method.spark_method_databricks_connect <- function(
     master_label = master_label,
     con_class = "connect_databricks",
     cluster_id = cluster_id,
+    serverless = serverless,
     method = method,
     config = config
   )
@@ -151,6 +185,7 @@ initialize_connection <- function(
     master_label,
     con_class,
     cluster_id = NULL,
+    serverless = NULL,
     method = NULL,
     config = NULL) {
   warnings <- import("warnings")
@@ -173,12 +208,15 @@ initialize_connection <- function(
     "ignore",
     message = "Index.format is deprecated and will be removed in a future version"
   )
+
   session <- conn$getOrCreate()
   get_version <- try(session$version, silent = TRUE)
   if (inherits(get_version, "try-error")) databricks_dbr_error(get_version)
-  session$conf$set("spark.sql.session.localRelationCacheThreshold", 1048576L)
-  session$conf$set("spark.sql.execution.arrow.pyspark.enabled", "true")
-  session$conf$set("spark.sql.execution.arrow.pyspark.fallback.enabled", "false")
+  if (!serverless) {
+    session$conf$set("spark.sql.session.localRelationCacheThreshold", 1048576L)
+    session$conf$set("spark.sql.execution.arrow.pyspark.enabled", "true")
+    session$conf$set("spark.sql.execution.arrow.pyspark.fallback.enabled", "false")
+  }
 
   # do we need this `spark_context` object?
   spark_context <- list(spark_context = session)