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How to Fix Outlook Not Connecting to Microsoft 365 (Modern Auth & Credential Fix)

MH IT SOLUTION Editorial Team · Updated August 22, 2026 · 7 min readIntermediate

Is your desktop Outlook client stuck on Disconnected or constantly asking for password credentials? Follow these 4 proven methods to restore your Microsoft 365 connection.

Step-by-Step Video Walkthrough   Watch on YouTube ↗

Common Symptoms and Quick Fixes

Symptom Likely Cause Quick Fix
Outlook prompts for Basic Auth popup Modern Authentication disabled or blocked Enforce OAuth2 via Registry / Modern Auth
Stuck on Disconnected after a password change Expired cached token in Credential Manager Clear cached Microsoft credentials
Cannot find server during profile setup Autodiscover CNAME missing or wrong Verify autodiscover CNAME points to outlook.com

Method 1: Clear Cached Microsoft Credentials in Windows

Windows Credential Manager stores encrypted OAuth tokens. When an expired token gets locked, Outlook enters an endless silent authentication loop.

1

Close Outlook and all related appsMake sure outlook.exe, teams.exe and onedrive.exe are closed. Check Task Manager for background processes.
2

Open Windows Credential ManagerPress Win + R, type control keymgr.dll and press Enter. Open the Windows Credentials tab.
3

Remove MicrosoftOffice16 and ADAL tokensUnder Generic Credentials remove entries starting with MicrosoftOffice16_Data:, MS.Outlook.15: and adal_token. Then restart Outlook.
Pro Tip for AdministratorsOn domain-joined PCs, also run klist purge in an elevated prompt before reopening Outlook.

Method 2: Enable Modern Authentication via Registry

Run this in Command Prompt as the affected user, then restart Outlook.

reg add HKCU\Software\Microsoft\Office\16.0\Common\Identity /v EnableADAL /t REG_DWORD /d 1 /f
reg add HKCU\Software\Microsoft\Office\16.0\Common\Identity /v Version /t REG_DWORD /d 1 /f
reg add HKCU\Software\Microsoft\Exchange /v AlwaysUseMSOAuthForAutoDiscover /t REG_DWORD /d 1 /f

Method 3: Verify the Autodiscover CNAME

Run the check below. The result must point to autodiscover.outlook.com.

nslookup -type=cname autodiscover.yourdomain.com
4

Fix the DNS recordIn your DNS host create CNAME autodiscover pointing to autodiscover.outlook.com, then wait for the TTL to expire.

Method 4: Create a Clean Outlook Profile

If a corrupted profile is the cause, a new one fixes it without touching your mailbox.

5

Open Mail settingsControl Panel > Mail (Microsoft Outlook) > Show Profiles > Add.
6

Set the new profile as defaultAdd your Microsoft 365 account, choose Always use this profile, then reopen Outlook.

Frequently Asked Questions (FAQ)

Q: Will deleting credentials in Credential Manager delete my emails or OST files?

No. It only removes cached login tokens. Your mailbox data on Microsoft 365 is untouched.

Q: Is the registry change safe?

Yes. These keys only enable Modern Authentication, which Microsoft 365 requires. Export the key first if you prefer.

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