To complete the SMTP setup, we need to generate an app password, which requires enabling MFA (Multi-Factor Authentication) for the user.
Please follow the steps below to enable MFA from the admin account.
Step 1: Enable MFA for the User in the Microsoft 365 Admin Center
Log in to the Microsoft 365 Admin Center:
https://admin.microsoft.comGo to Users → Active users.
Click on the user's name for whom you want to enable MFA.
Under Manage security settings, click Multi-Factor Authentication.
Step 2: Enforce MFA for the User
In the Multi-Factor Authentication page, find the user in the list.
Select the checkbox next to the user’s name.
On the right, click Enable to turn on MFA.
Confirm by clicking Enable multi-factor auth.
Optional: Enforce MFA Immediately
After enabling, click on the user again and select Enforce.
This will ensure that the user is prompted to configure MFA during their next login.
Step 3: User Configures MFA During Next Login
The user logs in to https://portal.office.com with their Microsoft 365 account.
They will be prompted to set up MFA using one of the following methods:
Phone number (SMS or Call)
Authenticator App (e.g., Microsoft Authenticator)
Once MFA is configured, the account will be secured with two-step verification.
Step 4: Generate an App Password
Once MFA is enabled and configured, the user can generate an app password:
Log in to https://myaccount.microsoft.com.
Click Security info from the left menu or go to:
https://mysignins.microsoft.com/security-info
Under Security info, click Add method → Select App password.
Name the password (e.g., "Outlook Desktop") and click Next.
Copy the generated app password and use it in Outlook or any other application.
Note : If you don’t have access to Conditional Access policy then you need to set security defaults to disable. (For this premium is required)
To do this:
Sign in to the Microsoft Entra admin center as at least a Security Administrator.
Browse to Identity > Overview > Properties.
Select Manage security defaults. (It's at the bottom of page)
Set Security defaults to Disable.
Select Save.
Note : If you have access to Conditional Access policy then :
Sign in to the Azure portal as a Security administrator or Conditional Access administrator.
Browse to Microsoft Entra ID > Security > Conditional Access.
In the policy that blocks Legacy Authentication, exclude the mailbox being used under Users and Groups > Exclude.
Select Save.
Final Step: Use App Password for SMTP Setup
Use the generated app password while setting up SMTP in Outlook or any other client. This will allow the client to authenticate correctly without further MFA prompts.
Do email us at [email protected] with any additional questions or if you need help with configuring your SMTP.