File Sharing Problems

Fix OneDrive External Sharing Requiring Sign-In Instead of Email Code

Tauseeq Magsi Sep 28, 2026 868 views

Question details

External users are being prompted to sign in with an account instead of receiving an email verification code when accessing shared OneDrive or SharePoint folders in certain Microsoft tenants.

Fix OneDrive External Sharing Requiring Sign-In Instead of Email Code

Product: Microsoft OneDrive and SharePoint
Device & OS: not provided
Scenario: Sharing folders with external users across different Microsoft 365 tenants where authentication requirements vary.
Observed behavior: Users receive email verification codes seamlessly in one tenant, but are forced to sign in to another tenant, likely due to automatic guest account creation overriding the passcode settings.

Before you start

You will need Microsoft 365 global administrator or SharePoint administrator privileges to check and modify the Microsoft Entra ID and SharePoint external sharing settings.

Solution 1Recommended

Configure Microsoft Entra ID and SharePoint Sharing Settings

Adjust your tenant's external collaboration settings to ensure email one-time passcodes are prioritized over forcing Microsoft account sign-ins for guests.

When sharing with specific external people, Microsoft 365 might automatically create guest accounts in your directory. If one-time passcode authentication isn't properly configured or if domain settings override it, users will be prompted to log in instead of receiving a verification code.

Access Microsoft Entra Admin Center

Go to the Microsoft Entra admin center (entra.microsoft.com) and sign in with your administrator credentials.

Navigate to External Identities

In the left navigation menu, expand 'Identity', click on 'External Identities', and then select 'External collaboration settings'.

Enable Email One-Time Passcode

Locate the 'Email one-time passcode for guests' setting. Ensure that it is enabled for your tenant so guests can use passcodes instead of creating Microsoft accounts.

Check SharePoint Sharing Policies

Open the SharePoint admin center, navigate to Policies > Sharing, and verify that external sharing is set to allow 'New and existing guests' to ensure compatibility with your Entra ID settings.

Configure Microsoft Entra ID and SharePoint Sharing Settings

Security Policies: Modifying external collaboration settings can impact your organization's security posture. Always verify that relaxing guest access rules complies with your internal IT security policies.

Solution 2

Use 'Anyone with the link' for Sharing

Bypassing the 'Specific people' sharing option prevents the system from authenticating the user against a guest account, avoiding the sign-in requirement.

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Frequently Asked Questions

Why does OneDrive force a sign-in instead of sending an email verification code?

This usually happens when the external user's email is already registered as a guest account in your Microsoft Entra ID (formerly Azure AD), or if the tenant policies strictly require authenticated sign-in rather than allowing email one-time passcodes.

How do I share a OneDrive folder without requiring the recipient to sign in?

When configuring your share settings, select the option 'Anyone with the link' instead of 'Specific people'. This creates an anonymous link that does not require the recipient to have or sign into a Microsoft account, provided your organization's policies allow it.

Is the email verification code feature secure for external sharing?

Yes, the email one-time passcode provides a secure, temporary authentication method. It verifies the recipient's identity by ensuring they have access to the email address the invitation was sent to, without forcing them to manage a separate Microsoft account password.

Document & File Issues