May 26, 2025 0

Outlook is a key tool for managing email, calendars, and contacts. However, one of the most frustrating issues users encounter is Outlook repeatedly asking for a password, even when the correct credentials are provided.

This article will explore the root causes of this issue and provide step-by-step solutions to fix it.

🔎 Symptoms

  • Outlook repeatedly prompts for password when launching or while running.
  • Entering the correct password doesn’t resolve the prompt.
  • Users may see errors like “Need Password” or “Disconnected” in Outlook’s status bar.

📌 Common Causes

1️⃣ Stored Credentials Corrupted or Outdated

  • Windows Credential Manager stores passwords for Outlook and may become corrupted.

2️⃣ Modern Authentication (OAuth) Issues

  • If Modern Authentication (OAuth) is misconfigured or disabled, Outlook may fall back to Basic Auth, causing prompts.

3️⃣ Outlook Profile Corruption

  • A corrupted Outlook profile can disrupt authentication.

4️⃣ Outdated Outlook Version

  • Using an old version of Outlook can result in compatibility issues with modern authentication methods.

5️⃣ Connectivity Issues with Exchange/Office 365

  • If Outlook cannot properly connect to Exchange Online or on-premises servers, it may prompt for credentials.

6️⃣ Multi-Factor Authentication (MFA) Conflicts

  • If MFA is required but not properly configured or cached, users may face constant prompts.

🛠 Step-by-Step Solutions

🔧 1. Clear Stored Credentials

  • Open Control Panel > Credential Manager.
  • Remove any stored credentials for Outlook, Office, or MSO entries.
  • Restart Outlook and enter credentials again.

🔧 2. Enable Modern Authentication (if applicable)

  • For Office 365 users:
    • Modern Auth is enabled by default but check via PowerShell: powershellCopyEditGet-OrganizationConfig | Format-Table Name,OAuth*
      • If disabled, contact your admin to enable Modern Authentication.

🔧 3. Update Outlook to Latest Version

  • Open Outlook > File > Office Account > Update Options > Update Now.
  • Ensure you’re using a version that supports Modern Authentication.

🔧 4. Create a New Outlook Profile

  • Control Panel > Mail > Show Profiles > Add.
  • Configure the new profile with the correct account.
  • Set the new profile as default and check if the issue persists.

🔧 5. Check Exchange Connectivity

  • Verify Exchange Online/On-Premises is accessible.
  • Run Test E-mail AutoConfiguration in Outlook (Ctrl + right-click the Outlook icon in the system tray).

🔧 6. Review Multi-Factor Authentication (MFA) Settings

  • If MFA is required:
    • Sign out from all Office apps.
    • Clear cached tokens (%localappdata%\Microsoft\IdentityCache and %localappdata%\Microsoft\Office\16.0\Licensing).
    • Sign in again with proper MFA steps.

🔧 7. Check User’s License and Access

  • Ensure the user’s Microsoft 365 license is valid and includes Exchange Online.
  • Confirm the mailbox is not in an inactive or litigation hold state.

💡 Pro Tips

  • If using Outlook 2016 or later, Modern Authentication is preferred for Office 365.
  • For on-premises Exchange environments, check Autodiscover and authentication settings.
  • If using Basic Auth, Microsoft is deprecating it—migrate to Modern Auth.
  • Use Outlook Web (OWA) to confirm if credentials are valid and isolate client-side issues.

📚 Conclusion

When Outlook keeps prompting for a password, it’s often due to a combination of authentication, profile, or connectivity issues. By clearing stored credentials, updating Outlook, recreating the profile, and ensuring Modern Authentication is in place, users can regain seamless access to their email.

Author: Ramprasad Mandal (26th May’2025)

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