diff --git a/.github/policies/pr.dependabot-auto-merge.yml b/.github/policies/pr.dependabot-auto-merge.yml
new file mode 100644
index 00000000000..7136ec2b612
--- /dev/null
+++ b/.github/policies/pr.dependabot-auto-merge.yml
@@ -0,0 +1,37 @@
+id: pr.dependabot-auto-merge
+name: GitOps.PullRequestIssueManagement
+description: Automatically approve and merge Dependabot updates
+owner:
+resource: repository
+disabled: false
+where:
+configuration:
+  resourceManagementConfiguration:
+    eventResponderTasks:
+      - description: Approve and auto-merge Dependabot updates
+        if:
+          - payloadType: Pull_Request
+          - isAction:
+              action: Opened
+          - targetsBranch:
+              branch: main
+          - isActivitySender:
+              user: dependabot[bot]
+              issueAuthor: true
+        then:
+          - approvePullRequest:
+              comment: "Approved automatically for a Dependabot update."
+          - addLabel:
+              label: auto-merge
+          - enableAutoMerge:
+              mergeMethod: Squash
+
+      - description: Disable auto-merge when the auto-merge label is removed
+        if:
+          - payloadType: Pull_Request
+          - labelRemoved:
+              label: auto-merge
+        then:
+          - disableAutoMerge
+onFailure:
+onSuccess:
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index fe452fe7a69..c096fd166a6 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -519,12 +519,13 @@ Process labels
 
 Misc labels
 
-| Name                | Color   | Description                                        |
-| ------------------- | ------- | -------------------------------------------------- |
-| `agentic-workflows` | #000000 | Issues/PR created by github agentic workflows      |
-| `good first issue`  | #7057ff | Good for newcomers                                 |
-| `mq`                | #0969da | Good candidate for MQ                              |
-| `int:azure-specs`   | #0e8a16 | Run integration tests against azure-rest-api-specs |
+| Name                | Color   | Description                                                      |
+| ------------------- | ------- | ---------------------------------------------------------------- |
+| `agentic-workflows` | #000000 | Issues/PR created by github agentic workflows                    |
+| `auto-merge`        | #0e8a16 | Automatically merge the pull request after all requirements pass |
+| `good first issue`  | #7057ff | Good for newcomers                                               |
+| `mq`                | #0969da | Good candidate for MQ                                            |
+| `int:azure-specs`   | #0e8a16 | Run integration tests against azure-rest-api-specs               |
 
 <!-- LABEL GENERATED REF END -->
 
diff --git a/eng/common/config/labels.ts b/eng/common/config/labels.ts
index 8935f48cdb8..55cb25d8d1c 100644
--- a/eng/common/config/labels.ts
+++ b/eng/common/config/labels.ts
@@ -214,6 +214,10 @@ export default defineConfig({
           color: "000000",
           description: "Issues/PR created by github agentic workflows",
         },
+        "auto-merge": {
+          color: "0e8a16",
+          description: "Automatically merge the pull request after all requirements pass",
+        },
         "good first issue": {
           color: "7057ff",
           description: "Good for newcomers",