diff --git a/README.md b/README.md
index baf652fb..90a350dc 100644
--- a/README.md
+++ b/README.md
@@ -2,14 +2,17 @@
 
 This action can be used to set cluster context before other actions like [`azure/k8s-deploy`](https://github.com/Azure/k8s-deploy/tree/master), [`azure/k8s-create-secret`](https://github.com/Azure/k8s-create-secret/tree/master) or any kubectl commands (in script) can be run subsequently in the workflow.
 
-There are two approaches for specifying the deployment target:
+It is a requirement to use [`azure/login`](https://github.com/Azure/login/tree/master) in your workflow before using this action. 
+
+There are three approaches for specifying the deployment target:
 
 - Kubeconfig file provided as input to the action
 - Service account approach where the secret associated with the service account is provided as input to the action
+- Service principal approach(only applicable for arc cluster) where service principal provided with 'creds' is used as input to action 
 
-If inputs related to both these approaches are provided, kubeconfig approach related inputs are given precedence.
+If inputs related to all these approaches are provided, kubeconfig approach related inputs are given precedence.
 
-In both these approaches it is recommended to store these contents (kubeconfig file content or secret content) in a [secret](https://developer.github.com/actions/managing-workflows/storing-secrets/) which could be referenced later in the action.
+In all these approaches it is recommended to store these contents (kubeconfig file content or secret content) in a [secret](https://developer.github.com/actions/managing-workflows/storing-secrets/) which could be referenced later in the action.
 
 ## Action inputs
 
@@ -22,7 +25,7 @@ In both these approaches it is recommended to store these contents (kubeconfig f
   </thead>
   <tr>
     <td><code>method</code><br/>Method</td>
-    <td>(Optional) Acceptable values: kubeconfig/service-account. Default value: kubeconfig</td>
+    <td>(Optional) Acceptable values: kubeconfig/service-account/service-principal. Default value: kubeconfig</td>
   </tr>
   <tr>
     <td><code>kubeconfig</code><br/>Kubectl config</td>
@@ -40,6 +43,22 @@ In both these approaches it is recommended to store these contents (kubeconfig f
     <td><code>k8s-secret</code><br/>Secret</td>
     <td>(Relevant for service account approach) Secret associated with the service account to be used for deployments</td>
   </tr>
+  <tr>
+    <td><code>cluster-type</code><br/>Type of cluster</td>
+    <td>Type of cluster. Acceptable values: generic/arc</td>
+  </tr>
+  <tr>
+    <td><code>cluster-name</code><br/>Name of arc cluster</td>
+    <td>Name of Azure Arc enabled Kubernetes cluster. Required only if cluster-type is 'arc'.</td>
+  </tr>
+  <tr>
+    <td><code>resource-group</code><br/>resource group</td>
+    <td>Resource group containing the Azure Arc enabled Kubernetes cluster. Required only if cluster-type is 'arc'.</td>
+  </tr>
+  <tr>
+    <td><code>token</code><br/>Service account token</td>
+    <td>Applicable for 'service-account' method.</td>
+  </tr>
 </table>
 
 ## Example usage
@@ -101,6 +120,31 @@ kubectl get serviceAccounts <service-account-name> -n <namespace> -o 'jsonpath={
 kubectl get secret <service-account-secret-name> -n <namespace> -o yaml
 ```
 
+### Service account approach for arc cluster
+
+```yaml
+- uses: azure/k8s-set-context@v1
+  with:
+    method: service-account
+    cluster-type: 'arc'
+    cluster-name: <cluster-name>
+    resource-group: <resource-group>
+    token: '${{ secrets.SA_TOKEN }}'
+  id: setcontext
+```
+
+### Service principal approach for arc cluster
+
+```yaml
+- uses: azure/k8s-set-context@v1
+  with:
+    method: service-principal
+    cluster-type: 'arc'
+    cluster-name: <cluster-name>
+    resource-group: <resource-group>
+  id: setcontext
+```
+
 ## Contributing
 
 This project welcomes contributions and suggestions.  Most contributions require you to agree to a
diff --git a/action.yml b/action.yml
index 8c656ae2..cf50db3d 100644
--- a/action.yml
+++ b/action.yml
@@ -2,8 +2,12 @@ name: 'Kubernetes set context'
 description: 'Kubernetes set context'
 inputs: 
 # Used for setting the target K8s cluster context which will be used by other actions like azure/k8s-actions/k8s-deploy or azure/k8s-actions/k8s-create-secret
+  cluster-type:
+    description: 'Acceptable values: generic or arc'
+    required: true
+    default: 'generic'
   method:
-    description: 'Acceptable values: kubeconfig or service-account'
+    description: 'Acceptable values: kubeconfig or service-account or service-principal'
     required: true
     default: 'kubeconfig'
   kubeconfig:
@@ -23,9 +27,21 @@ inputs:
     description: 'Service account secret. Run kubectl get serviceaccounts <service-account-name> -o yaml and copy the service-account-secret-name. Copy the ouptut of kubectl get secret <service-account-secret-name> -o yaml'
     required: false
     default: ''
+  token:
+    description: 'Token extracted from the secret of service account (should be base 64 decoded)'
+    required: false
+    default: ''
+  resource-group:
+    description: 'Azure resource group name'
+    required: false
+    default: ''
+  cluster-name:
+    description: 'Azure connected cluster name'
+    required: false
+    default: ''
   
 branding:
   color: 'green' # optional, decorates the entry in the GitHub Marketplace
 runs:
   using: 'node12'
-  main: 'lib/login.js'
+  main: 'lib/login.js'
\ No newline at end of file
diff --git a/lib/arc-login.js b/lib/arc-login.js
new file mode 100644
index 00000000..ae57a203
--- /dev/null
+++ b/lib/arc-login.js
@@ -0,0 +1,92 @@
+"use strict";
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments || [])).next());
+    });
+};
+Object.defineProperty(exports, "__esModule", { value: true });
+const core = require("@actions/core");
+const path = require("path");
+const child_process_1 = require("child_process");
+const fs = require("fs");
+const io = require("@actions/io");
+const exec = require("@actions/exec");
+var azPath;
+const kubeconfig_timeout = 120; //timeout in seconds
+function getArcKubeconfig() {
+    return __awaiter(this, void 0, void 0, function* () {
+        try {
+            let method = core.getInput('method');
+            if (method != 'service-account' && method != 'service-principal') {
+                throw Error("Supported methods for arc cluster are 'service-account' and 'service-principal'.");
+            }
+            let resourceGroupName = core.getInput('resource-group');
+            let clusterName = core.getInput('cluster-name');
+            if (!resourceGroupName) {
+                throw Error("'resourceGroupName' is not passed for arc cluster.");
+            }
+            if (!clusterName) {
+                throw Error("'clusterName' is not passed for arc cluster.");
+            }
+            azPath = yield io.which("az", true);
+            yield executeAzCliCommand(`account show`, false);
+            try {
+                yield executeAzCliCommand(`extension remove -n connectedk8s`, false);
+            }
+            catch (_a) {
+                //ignore if this causes an error
+            }
+            yield executeAzCliCommand(`extension add -n connectedk8s`, false);
+            yield executeAzCliCommand(`extension list`, false);
+            const runnerTempDirectory = process.env['RUNNER_TEMP']; // Using process.env until the core libs are updated
+            const kubeconfigPath = path.join(runnerTempDirectory, `kubeconfig_${Date.now()}`);
+            if (method == 'service-account') {
+                let saToken = core.getInput('token');
+                if (!saToken) {
+                    throw Error("'saToken' is not passed for 'service-account' method.");
+                }
+                console.log("using 'service-account' method for authenticating to arc cluster.");
+                const proc = child_process_1.spawn(azPath, ['connectedk8s', 'proxy', '-n', clusterName, '-g', resourceGroupName, '-f', kubeconfigPath, '--token', saToken], {
+                    detached: true,
+                    stdio: 'ignore'
+                });
+                proc.unref();
+            }
+            else {
+                console.log("using 'service-principal' method for authenticating to arc cluster.");
+                const proc = child_process_1.spawn(azPath, ['connectedk8s', 'proxy', '-n', clusterName, '-g', resourceGroupName, '-f', kubeconfigPath], {
+                    detached: true,
+                    stdio: 'ignore'
+                });
+                proc.unref();
+            }
+            console.log(`Waiting for ${kubeconfig_timeout} seconds for kubeconfig to be merged....`);
+            yield sleep(kubeconfig_timeout * 1000); //sleeping for 2 minutes to allow kubeconfig to be merged
+            fs.chmodSync(kubeconfigPath, '600');
+            core.exportVariable('KUBECONFIG', kubeconfigPath);
+            console.log('KUBECONFIG environment variable is set');
+        }
+        catch (ex) {
+            return Promise.reject(ex);
+        }
+    });
+}
+exports.getArcKubeconfig = getArcKubeconfig;
+function sleep(ms) {
+    return new Promise(resolve => setTimeout(resolve, ms));
+}
+function executeAzCliCommand(command, silent, execOptions = {}, args = []) {
+    return __awaiter(this, void 0, void 0, function* () {
+        execOptions.silent = !!silent;
+        try {
+            yield exec.exec(`"${azPath}" ${command}`, args, execOptions);
+        }
+        catch (error) {
+            throw new Error(error);
+        }
+    });
+}
diff --git a/lib/client.js b/lib/client.js
new file mode 100644
index 00000000..d19f77ec
--- /dev/null
+++ b/lib/client.js
@@ -0,0 +1,99 @@
+"use strict";
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments || [])).next());
+    });
+};
+Object.defineProperty(exports, "__esModule", { value: true });
+const util = require("util");
+const fs = require("fs");
+const httpClient = require("typed-rest-client/HttpClient");
+const core = require("@actions/core");
+var httpCallbackClient = new httpClient.HttpClient('GITHUB_RUNNER', null, {});
+class WebRequest {
+}
+exports.WebRequest = WebRequest;
+class WebResponse {
+}
+exports.WebResponse = WebResponse;
+class WebRequestOptions {
+}
+exports.WebRequestOptions = WebRequestOptions;
+function sendRequest(request, options) {
+    return __awaiter(this, void 0, void 0, function* () {
+        let i = 0;
+        let retryCount = options && options.retryCount ? options.retryCount : 5;
+        let retryIntervalInSeconds = options && options.retryIntervalInSeconds ? options.retryIntervalInSeconds : 2;
+        let retriableErrorCodes = options && options.retriableErrorCodes ? options.retriableErrorCodes : ["ETIMEDOUT", "ECONNRESET", "ENOTFOUND", "ESOCKETTIMEDOUT", "ECONNREFUSED", "EHOSTUNREACH", "EPIPE", "EA_AGAIN"];
+        let retriableStatusCodes = options && options.retriableStatusCodes ? options.retriableStatusCodes : [408, 409, 500, 502, 503, 504];
+        let timeToWait = retryIntervalInSeconds;
+        while (true) {
+            try {
+                if (request.body && typeof (request.body) !== 'string' && !request.body["readable"]) {
+                    request.body = fs.createReadStream(request.body["path"]);
+                }
+                let response = yield sendRequestInternal(request);
+                if (retriableStatusCodes.indexOf(response.statusCode) != -1 && ++i < retryCount) {
+                    core.debug(util.format("Encountered a retriable status code: %s. Message: '%s'.", response.statusCode, response.statusMessage));
+                    yield sleepFor(timeToWait);
+                    timeToWait = timeToWait * retryIntervalInSeconds + retryIntervalInSeconds;
+                    continue;
+                }
+                return response;
+            }
+            catch (error) {
+                if (retriableErrorCodes.indexOf(error.code) != -1 && ++i < retryCount) {
+                    core.debug(util.format("Encountered a retriable error:%s. Message: %s.", error.code, error.message));
+                    yield sleepFor(timeToWait);
+                    timeToWait = timeToWait * retryIntervalInSeconds + retryIntervalInSeconds;
+                }
+                else {
+                    if (error.code) {
+                        core.debug("error code =" + error.code);
+                    }
+                    throw error;
+                }
+            }
+        }
+    });
+}
+exports.sendRequest = sendRequest;
+function sleepFor(sleepDurationInSeconds) {
+    return new Promise((resolve, reject) => {
+        setTimeout(resolve, sleepDurationInSeconds * 1000);
+    });
+}
+exports.sleepFor = sleepFor;
+function sendRequestInternal(request) {
+    return __awaiter(this, void 0, void 0, function* () {
+        core.debug(util.format("[%s]%s", request.method, request.uri));
+        var response = yield httpCallbackClient.request(request.method, request.uri, request.body, request.headers);
+        return yield toWebResponse(response);
+    });
+}
+function toWebResponse(response) {
+    return __awaiter(this, void 0, void 0, function* () {
+        var res = new WebResponse();
+        if (response) {
+            res.statusCode = response.message.statusCode;
+            res.statusMessage = response.message.statusMessage;
+            res.headers = response.message.headers;
+            var body = yield response.readBody();
+            if (body) {
+                try {
+                    res.body = JSON.parse(body);
+                }
+                catch (error) {
+                    core.debug("Could not parse response: " + JSON.stringify(error));
+                    core.debug("Response: " + JSON.stringify(res.body));
+                    res.body = body;
+                }
+            }
+        }
+        return res;
+    });
+}
diff --git a/lib/login.js b/lib/login.js
index c6f5eff4..f7749276 100644
--- a/lib/login.js
+++ b/lib/login.js
@@ -1,122 +1,135 @@
-"use strict";
-var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
-    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
-    return new (P || (P = Promise))(function (resolve, reject) {
-        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
-        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
-        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
-        step((generator = generator.apply(thisArg, _arguments || [])).next());
-    });
-};
-Object.defineProperty(exports, "__esModule", { value: true });
-exports.run = void 0;
-const core = require("@actions/core");
-const path = require("path");
-const fs = require("fs");
-const io = require("@actions/io");
-const toolCache = require("@actions/tool-cache");
-const os = require("os");
-const toolrunner_1 = require("@actions/exec/lib/toolrunner");
-const jsyaml = require("js-yaml");
-const util = require("util");
-function getKubeconfig() {
-    const method = core.getInput('method', { required: true });
-    if (method == 'kubeconfig') {
-        const kubeconfig = core.getInput('kubeconfig', { required: true });
-        core.debug("Setting context using kubeconfig");
-        return kubeconfig;
-    }
-    else if (method == 'service-account') {
-        const clusterUrl = core.getInput('k8s-url', { required: true });
-        core.debug("Found clusterUrl, creating kubeconfig using certificate and token");
-        let k8sSecret = core.getInput('k8s-secret', { required: true });
-        var parsedk8sSecret = jsyaml.safeLoad(k8sSecret);
-        let kubernetesServiceAccountSecretFieldNotPresent = 'The service acount secret yaml does not contain %s; field. Make sure that its present and try again.';
-        if (!parsedk8sSecret) {
-            throw Error("The service account secret yaml specified is invalid. Make sure that its a valid yaml and try again.");
-        }
-        if (!parsedk8sSecret.data) {
-            throw Error(util.format(kubernetesServiceAccountSecretFieldNotPresent, "data"));
-        }
-        if (!parsedk8sSecret.data.token) {
-            throw Error(util.format(kubernetesServiceAccountSecretFieldNotPresent, "data.token"));
-        }
-        if (!parsedk8sSecret.data["ca.crt"]) {
-            throw Error(util.format(kubernetesServiceAccountSecretFieldNotPresent, "data[ca.crt]"));
-        }
-        const certAuth = parsedk8sSecret.data["ca.crt"];
-        const token = Buffer.from(parsedk8sSecret.data.token, 'base64').toString();
-        const kubeconfigObject = {
-            "apiVersion": "v1",
-            "kind": "Config",
-            "clusters": [
-                {
-                    "cluster": {
-                        "certificate-authority-data": certAuth,
-                        "server": clusterUrl
-                    }
-                }
-            ],
-            "users": [
-                {
-                    "user": {
-                        "token": token
-                    }
-                }
-            ]
-        };
-        return JSON.stringify(kubeconfigObject);
-    }
-    else {
-        throw Error("Invalid method specified. Acceptable values are kubeconfig and service-account.");
-    }
-}
-function getExecutableExtension() {
-    if (os.type().match(/^Win/)) {
-        return '.exe';
-    }
-    return '';
-}
-function getKubectlPath() {
-    return __awaiter(this, void 0, void 0, function* () {
-        let kubectlPath = yield io.which('kubectl', false);
-        if (!kubectlPath) {
-            const allVersions = toolCache.findAllVersions('kubectl');
-            kubectlPath = allVersions.length > 0 ? toolCache.find('kubectl', allVersions[0]) : '';
-            if (!kubectlPath) {
-                throw new Error('Kubectl is not installed');
-            }
-            kubectlPath = path.join(kubectlPath, `kubectl${getExecutableExtension()}`);
-        }
-        return kubectlPath;
-    });
-}
-function setContext(kubeconfigPath) {
-    return __awaiter(this, void 0, void 0, function* () {
-        let context = core.getInput('context');
-        if (context) {
-            //To use kubectl commands, the environment variable KUBECONFIG needs to be set for this step 
-            process.env['KUBECONFIG'] = kubeconfigPath;
-            const kubectlPath = yield getKubectlPath();
-            let toolRunner = new toolrunner_1.ToolRunner(kubectlPath, ['config', 'use-context', context]);
-            yield toolRunner.exec();
-            toolRunner = new toolrunner_1.ToolRunner(kubectlPath, ['config', 'current-context']);
-            yield toolRunner.exec();
-        }
-    });
-}
-function run() {
-    return __awaiter(this, void 0, void 0, function* () {
-        let kubeconfig = getKubeconfig();
-        const runnerTempDirectory = process.env['RUNNER_TEMP']; // Using process.env until the core libs are updated
-        const kubeconfigPath = path.join(runnerTempDirectory, `kubeconfig_${Date.now()}`);
-        core.debug(`Writing kubeconfig contents to ${kubeconfigPath}`);
-        fs.writeFileSync(kubeconfigPath, kubeconfig);
-        fs.chmodSync(kubeconfigPath, '600');
-        core.exportVariable('KUBECONFIG', kubeconfigPath);
-        console.log('KUBECONFIG environment variable is set');
-        yield setContext(kubeconfigPath);
-    });
-}
-exports.run = run;
-run().catch(core.setFailed);
+"use strict";
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments || [])).next());
+    });
+};
+Object.defineProperty(exports, "__esModule", { value: true });
+const core = require("@actions/core");
+const path = require("path");
+const fs = require("fs");
+const io = require("@actions/io");
+const toolCache = require("@actions/tool-cache");
+const os = require("os");
+const toolrunner_1 = require("@actions/exec/lib/toolrunner");
+const jsyaml = require("js-yaml");
+const util = require("util");
+const arc_login_1 = require("./arc-login");
+function getKubeconfig() {
+    const method = core.getInput('method', { required: true });
+    if (method == 'kubeconfig') {
+        const kubeconfig = core.getInput('kubeconfig', { required: true });
+        core.debug("Setting context using kubeconfig");
+        return kubeconfig;
+    }
+    else if (method == 'service-account') {
+        const clusterUrl = core.getInput('k8s-url', { required: true });
+        core.debug("Found clusterUrl, creating kubeconfig using certificate and token");
+        let k8sSecret = core.getInput('k8s-secret', { required: true });
+        var parsedk8sSecret = jsyaml.safeLoad(k8sSecret);
+        let kubernetesServiceAccountSecretFieldNotPresent = 'The service acount secret yaml does not contain %s; field. Make sure that its present and try again.';
+        if (!parsedk8sSecret) {
+            throw Error("The service account secret yaml specified is invalid. Make sure that its a valid yaml and try again.");
+        }
+        if (!parsedk8sSecret.data) {
+            throw Error(util.format(kubernetesServiceAccountSecretFieldNotPresent, "data"));
+        }
+        if (!parsedk8sSecret.data.token) {
+            throw Error(util.format(kubernetesServiceAccountSecretFieldNotPresent, "data.token"));
+        }
+        if (!parsedk8sSecret.data["ca.crt"]) {
+            throw Error(util.format(kubernetesServiceAccountSecretFieldNotPresent, "data[ca.crt]"));
+        }
+        const certAuth = parsedk8sSecret.data["ca.crt"];
+        const token = Buffer.from(parsedk8sSecret.data.token, 'base64').toString();
+        const kubeconfigObject = {
+            "apiVersion": "v1",
+            "kind": "Config",
+            "clusters": [
+                {
+                    "cluster": {
+                        "certificate-authority-data": certAuth,
+                        "server": clusterUrl
+                    }
+                }
+            ],
+            "users": [
+                {
+                    "user": {
+                        "token": token
+                    }
+                }
+            ]
+        };
+        return JSON.stringify(kubeconfigObject);
+    }
+    else {
+        throw Error("Invalid method specified. Acceptable values are kubeconfig and service-account.");
+    }
+}
+function getExecutableExtension() {
+    if (os.type().match(/^Win/)) {
+        return '.exe';
+    }
+    return '';
+}
+function getKubectlPath() {
+    return __awaiter(this, void 0, void 0, function* () {
+        let kubectlPath = yield io.which('kubectl', false);
+        if (!kubectlPath) {
+            const allVersions = toolCache.findAllVersions('kubectl');
+            kubectlPath = allVersions.length > 0 ? toolCache.find('kubectl', allVersions[0]) : '';
+            if (!kubectlPath) {
+                throw new Error('Kubectl is not installed');
+            }
+            kubectlPath = path.join(kubectlPath, `kubectl${getExecutableExtension()}`);
+        }
+        return kubectlPath;
+    });
+}
+function setContext(kubeconfigPath) {
+    return __awaiter(this, void 0, void 0, function* () {
+        let context = core.getInput('context');
+        if (context) {
+            //To use kubectl commands, the environment variable KUBECONFIG needs to be set for this step 
+            process.env['KUBECONFIG'] = kubeconfigPath;
+            const kubectlPath = yield getKubectlPath();
+            let toolRunner = new toolrunner_1.ToolRunner(kubectlPath, ['config', 'use-context', context]);
+            yield toolRunner.exec();
+            toolRunner = new toolrunner_1.ToolRunner(kubectlPath, ['config', 'current-context']);
+            yield toolRunner.exec();
+        }
+    });
+}
+function run() {
+    return __awaiter(this, void 0, void 0, function* () {
+        try {
+            let kubeconfig = '';
+            const cluster_type = core.getInput('cluster-type', { required: true });
+            if (cluster_type == 'arc') {
+                yield arc_login_1.getArcKubeconfig().catch(ex => {
+                    throw new Error('Error: Could not get the KUBECONFIG for arc cluster: ' + ex);
+                });
+            }
+            else {
+                const runnerTempDirectory = process.env['RUNNER_TEMP']; // Using process.env until the core libs are updated
+                const kubeconfigPath = path.join(runnerTempDirectory, `kubeconfig_${Date.now()}`);
+                kubeconfig = getKubeconfig();
+                core.debug(`Writing kubeconfig contents to ${kubeconfigPath}`);
+                fs.writeFileSync(kubeconfigPath, kubeconfig);
+                fs.chmodSync(kubeconfigPath, '600');
+                core.exportVariable('KUBECONFIG', kubeconfigPath);
+                console.log('KUBECONFIG environment variable is set');
+                yield setContext(kubeconfigPath);
+            }
+        }
+        catch (ex) {
+            return Promise.reject(ex);
+        }
+    });
+}
+run().catch(core.setFailed);
diff --git a/node_modules/@actions/core/package.json b/node_modules/@actions/core/package.json
index f85dacee..57f754d6 100644
--- a/node_modules/@actions/core/package.json
+++ b/node_modules/@actions/core/package.json
@@ -23,7 +23,7 @@
   "_resolved": "https://registry.npmjs.org/@actions/core/-/core-1.2.6.tgz",
   "_shasum": "a78d49f41a4def18e88ce47c2cac615d5694bf09",
   "_spec": "@actions/core@^1.2.6",
-  "_where": "/home/n645863/repos/stigok/src/k8s-set-context",
+  "_where": "D:\\Work\\Actions\\k8s-set-context",
   "bugs": {
     "url": "https://github.com/actions/toolkit/issues"
   },
diff --git a/package.json b/package.json
index bc7cb180..6aa01bdb 100644
--- a/package.json
+++ b/package.json
@@ -4,7 +4,7 @@
     "private": true,
     "main": "lib/run.js",
     "scripts": {
-        "build": "tsc --outDir .\\lib\\ --rootDir .\\src\\"
+        "build": "tsc --outDir ./lib --rootDir ./src"
     },
     "keywords": [
         "actions",
diff --git a/src/arc-login.ts b/src/arc-login.ts
new file mode 100644
index 00000000..88e94303
--- /dev/null
+++ b/src/arc-login.ts
@@ -0,0 +1,83 @@
+import * as core from '@actions/core';
+import * as path from 'path';
+import {spawn} from 'child_process';
+import * as fs from 'fs';
+import * as io from '@actions/io';
+import * as exec from '@actions/exec';
+var azPath: string;
+    
+const kubeconfig_timeout = 120;//timeout in seconds
+
+export async function getArcKubeconfig(): Promise<string> {
+    try {
+        let method = core.getInput('method');
+        if (method != 'service-account' && method != 'service-principal'){
+            throw Error("Supported methods for arc cluster are 'service-account' and 'service-principal'.");
+        }        
+        
+        let resourceGroupName = core.getInput('resource-group');
+        let clusterName = core.getInput('cluster-name');
+        if(!resourceGroupName){
+            throw Error("'resourceGroupName' is not passed for arc cluster.")
+        }
+        if(!clusterName){
+            throw Error("'clusterName' is not passed for arc cluster.")
+        }
+        azPath = await io.which("az", true);
+        await executeAzCliCommand(`account show`, false);
+        try{
+            await executeAzCliCommand(`extension remove -n connectedk8s`, false);
+        }
+        catch{
+            //ignore if this causes an error
+        }
+        await executeAzCliCommand(`extension add -n connectedk8s`, false);
+        await executeAzCliCommand(`extension list`, false);
+        const runnerTempDirectory = process.env['RUNNER_TEMP']; // Using process.env until the core libs are updated
+        const kubeconfigPath = path.join(runnerTempDirectory, `kubeconfig_${Date.now()}`);
+        if (method == 'service-account'){
+            let saToken = core.getInput('token');
+            if(!saToken){
+                throw Error("'saToken' is not passed for 'service-account' method.")
+            }
+            console.log("using 'service-account' method for authenticating to arc cluster.")
+            const proc=spawn(azPath,['connectedk8s','proxy','-n',clusterName,'-g',resourceGroupName,'-f',kubeconfigPath,'--token',saToken], {
+                detached: true,
+                stdio: 'ignore'
+            });
+            proc.unref();
+        } else{
+            console.log("using 'service-principal' method for authenticating to arc cluster.")
+            const proc=spawn(azPath,['connectedk8s','proxy','-n',clusterName,'-g',resourceGroupName,'-f',kubeconfigPath], {
+                detached: true,
+                stdio: 'ignore'
+            });
+            proc.unref();
+        }
+        console.log(`Waiting for ${kubeconfig_timeout} seconds for kubeconfig to be merged....`)
+        await sleep(kubeconfig_timeout*1000) //sleeping for 2 minutes to allow kubeconfig to be merged
+        fs.chmodSync(kubeconfigPath, '600');
+        core.exportVariable('KUBECONFIG', kubeconfigPath);
+        console.log('KUBECONFIG environment variable is set');
+    } catch (ex) {
+        return Promise.reject(ex);
+    }
+}
+
+function sleep(ms) {
+    return new Promise(resolve => setTimeout(resolve, ms));
+}
+
+async function executeAzCliCommand(
+    command: string, 
+    silent?: boolean, 
+    execOptions: any = {}, 
+    args: any = []) {
+    execOptions.silent = !!silent;
+    try {
+        await exec.exec(`"${azPath}" ${command}`, args,  execOptions); 
+    }
+    catch (error) {
+        throw new Error(error);
+    }
+}
\ No newline at end of file
diff --git a/src/client.ts b/src/client.ts
new file mode 100644
index 00000000..a314d2df
--- /dev/null
+++ b/src/client.ts
@@ -0,0 +1,103 @@
+import util = require("util");
+import fs = require('fs');
+import httpClient = require("typed-rest-client/HttpClient");
+import * as core from '@actions/core';
+
+var httpCallbackClient = new httpClient.HttpClient('GITHUB_RUNNER', null, {});
+
+export class WebRequest {
+    public method: string;
+    public uri: string;
+    // body can be string or ReadableStream
+    public body: string | NodeJS.ReadableStream;
+    public headers: any;
+}
+
+export class WebResponse {
+    public statusCode: number;
+    public statusMessage: string;
+    public headers: any;
+    public body: any;
+}
+
+export class WebRequestOptions {
+    public retriableErrorCodes?: string[];
+    public retryCount?: number;
+    public retryIntervalInSeconds?: number;
+    public retriableStatusCodes?: number[];
+    public retryRequestTimedout?: boolean;
+}
+
+export async function sendRequest(request: WebRequest, options?: WebRequestOptions): Promise<WebResponse> {
+    let i = 0;
+    let retryCount = options && options.retryCount ? options.retryCount : 5;
+    let retryIntervalInSeconds = options && options.retryIntervalInSeconds ? options.retryIntervalInSeconds : 2;
+    let retriableErrorCodes = options && options.retriableErrorCodes ? options.retriableErrorCodes : ["ETIMEDOUT", "ECONNRESET", "ENOTFOUND", "ESOCKETTIMEDOUT", "ECONNREFUSED", "EHOSTUNREACH", "EPIPE", "EA_AGAIN"];
+    let retriableStatusCodes = options && options.retriableStatusCodes ? options.retriableStatusCodes : [408, 409, 500, 502, 503, 504];
+    let timeToWait: number = retryIntervalInSeconds;
+    while (true) {
+        try {
+            if (request.body && typeof (request.body) !== 'string' && !request.body["readable"]) {
+                request.body = fs.createReadStream(request.body["path"]);
+            }
+
+            let response: WebResponse = await sendRequestInternal(request);
+            if (retriableStatusCodes.indexOf(response.statusCode) != -1 && ++i < retryCount) {
+                core.debug(util.format("Encountered a retriable status code: %s. Message: '%s'.", response.statusCode, response.statusMessage));
+                await sleepFor(timeToWait);
+                timeToWait = timeToWait * retryIntervalInSeconds + retryIntervalInSeconds;
+                continue;
+            }
+
+            return response;
+        }
+        catch (error) {
+            if (retriableErrorCodes.indexOf(error.code) != -1 && ++i < retryCount) {
+                core.debug(util.format("Encountered a retriable error:%s. Message: %s.", error.code, error.message));
+                await sleepFor(timeToWait);
+                timeToWait = timeToWait * retryIntervalInSeconds + retryIntervalInSeconds;
+            }
+            else {
+                if (error.code) {
+                    core.debug("error code =" + error.code);
+                }
+
+                throw error;
+            }
+        }
+    }
+}
+
+export function sleepFor(sleepDurationInSeconds: number): Promise<any> {
+    return new Promise((resolve, reject) => {
+        setTimeout(resolve, sleepDurationInSeconds * 1000);
+    });
+}
+
+async function sendRequestInternal(request: WebRequest): Promise<WebResponse> {
+    core.debug(util.format("[%s]%s", request.method, request.uri));
+    var response: httpClient.HttpClientResponse = await httpCallbackClient.request(request.method, request.uri, request.body, request.headers);
+    return await toWebResponse(response);
+}
+
+async function toWebResponse(response: httpClient.HttpClientResponse): Promise<WebResponse> {
+    var res = new WebResponse();
+    if (response) {
+        res.statusCode = response.message.statusCode;
+        res.statusMessage = response.message.statusMessage;
+        res.headers = response.message.headers;
+        var body = await response.readBody();
+        if (body) {
+            try {
+                res.body = JSON.parse(body);
+            }
+            catch (error) {
+                core.debug("Could not parse response: " + JSON.stringify(error));
+                core.debug("Response: " + JSON.stringify(res.body));
+                res.body = body;
+            }
+        }
+    }
+
+    return res;
+}
\ No newline at end of file
diff --git a/src/login.ts b/src/login.ts
index 62026aef..eb44f6e7 100644
--- a/src/login.ts
+++ b/src/login.ts
@@ -7,18 +7,19 @@ import * as os from 'os';
 import { ToolRunner } from "@actions/exec/lib/toolrunner";
 import * as jsyaml from 'js-yaml';
 import * as util from 'util';
+import { getArcKubeconfig } from './arc-login';
 
 function getKubeconfig(): string {
-    const method =  core.getInput('method', {required: true});
+    const method = core.getInput('method', { required: true });
     if (method == 'kubeconfig') {
-        const kubeconfig = core.getInput('kubeconfig', {required : true});
+        const kubeconfig = core.getInput('kubeconfig', { required: true });
         core.debug("Setting context using kubeconfig");
         return kubeconfig;
     }
     else if (method == 'service-account') {
         const clusterUrl = core.getInput('k8s-url', { required: true });
         core.debug("Found clusterUrl, creating kubeconfig using certificate and token");
-        let k8sSecret = core.getInput('k8s-secret', {required : true});
+        let k8sSecret = core.getInput('k8s-secret', { required: true });
         var parsedk8sSecret = jsyaml.safeLoad(k8sSecret);
         let kubernetesServiceAccountSecretFieldNotPresent = 'The service acount secret yaml does not contain %s; field. Make sure that its present and try again.';
         if (!parsedk8sSecret) {
@@ -102,15 +103,28 @@ async function setContext(kubeconfigPath: string) {
 }
 
 async function run() {
-    let kubeconfig = getKubeconfig();
-    const runnerTempDirectory = process.env['RUNNER_TEMP']; // Using process.env until the core libs are updated
-    const kubeconfigPath = path.join(runnerTempDirectory, `kubeconfig_${Date.now()}`);
-    core.debug(`Writing kubeconfig contents to ${kubeconfigPath}`);
-    fs.writeFileSync(kubeconfigPath, kubeconfig);
-    fs.chmodSync(kubeconfigPath, '600');
-    core.exportVariable('KUBECONFIG', kubeconfigPath);
-    console.log('KUBECONFIG environment variable is set');
-    await setContext(kubeconfigPath);
+    try {
+        let kubeconfig = '';
+        const cluster_type = core.getInput('cluster-type', { required: true });
+        if (cluster_type == 'arc') {
+            await getArcKubeconfig().catch(ex => {
+                throw new Error('Error: Could not get the KUBECONFIG for arc cluster: ' + ex);
+            });
+        }
+        else {
+            const runnerTempDirectory = process.env['RUNNER_TEMP']; // Using process.env until the core libs are updated
+            const kubeconfigPath = path.join(runnerTempDirectory, `kubeconfig_${Date.now()}`);
+            kubeconfig = getKubeconfig();
+            core.debug(`Writing kubeconfig contents to ${kubeconfigPath}`);
+            fs.writeFileSync(kubeconfigPath, kubeconfig);
+            fs.chmodSync(kubeconfigPath, '600');
+            core.exportVariable('KUBECONFIG', kubeconfigPath);
+            console.log('KUBECONFIG environment variable is set');
+            await setContext(kubeconfigPath);
+        }
+    } catch (ex) {
+        return Promise.reject(ex);
+    }
 }
 
 run().catch(core.setFailed);
\ No newline at end of file