Permission & Access Issues

How to Restrict Excel Workbook Access Based on a User List

Maira Mehtab Sep 21, 2026 869 views

Question details

The user wants to allow authorized individuals to open an Excel workbook without entering a password, while prompting new or unauthorized users to enter one.

Product: Microsoft Excel
Device & OS: not provided
Scenario: Sharing a secure Excel file with specific individuals without requiring them to memorize or type a password, while keeping out unauthorized users.
Observed behavior: Excel lacks a built-in standard password feature that applies dynamically based on a user list; standard password protection applies uniformly to all users.

Before you start

Verify that your organization uses Microsoft 365 Enterprise or Business plans, as this solution relies on Microsoft Purview Information Protection to manage user-based encryption.

Solution 1Recommended

Use Microsoft Purview Sensitivity Labels with Encryption

Apply a sensitivity label to encrypt the workbook and restrict access based on user credentials rather than a universal file password.

Because standard Excel password protection cannot distinguish between different users, Microsoft Purview provides an enterprise-grade solution. It encrypts the document and checks the user's Microsoft 365 credentials to grant access automatically to authorized users, remaining effective even if the file is moved or renamed.

Access the Compliance Portal

Log in to the Microsoft Purview compliance portal with administrative credentials and navigate to the 'Information Protection' section.

Configure a Sensitivity Label

Create a new sensitivity label or edit an existing one. Ensure you select the option to apply encryption to files and emails.

Assign User Permissions

Under the encryption settings, assign permissions by entering the specific email addresses, groups, or domains of the users who are authorized to access the workbook.

Publish the Label

Save your settings and publish the label via a label policy to make it available to the users in your organization.

Apply the Label in Excel

Open the target Excel workbook. Go to the 'Home' tab, click on the 'Sensitivity' button, and select the newly created label to apply the user-list access restrictions.

Licensing Requirement: Microsoft Purview Information Protection is an enterprise feature. You must have an appropriate Microsoft 365 license (such as E3, E5, or Business Premium) to create and apply sensitivity labels.

Free Microsoft Office alternative

Use WPS Office for Secure and Easy Spreadsheet Management

While enterprise-level DRM like Microsoft Purview requires expensive business subscriptions, WPS Office offers a free, lightweight, and highly compatible alternative for your daily spreadsheet needs. You can easily secure your files with standard encryption or utilize WPS Cloud for seamless, permission-based collaboration.

1. Download and Install WPS Office: Visit the official WPS website to download and install the free version of WPS Office on your device.
2. Open Your Spreadsheet: Launch WPS Spreadsheets and open the file you wish to secure.
3. Apply Encryption: Go to the 'Menu' > 'File' > 'File Encryption' to set up a secure password to prevent unauthorized access.

Seamless format compatibility with Microsoft Excel (.xlsx, .xls, .csv).Free and lightweight alternative to heavy enterprise suites.Familiar user interface requiring zero learning curve.Built-in document encryption and customizable cloud sharing permissions.

microsoft office alternative - wps office

Frequently Asked Questions

Can I set different passwords for different users in standard Excel?

No, standard Excel workbook protection only allows setting one universal password to open the file and one password to modify it. You cannot assign unique passwords per user natively without third-party add-ins or enterprise tools.

How do I share an Excel file securely without a password?

You can upload the file to OneDrive or SharePoint and use the 'Share' feature to create a secure link restricted to 'Specific people'. This grants them access via their Microsoft account authentication without needing a traditional file password.

Are Microsoft Purview sensitivity labels available in Office 365 Personal?

No, Microsoft Purview sensitivity labels are an enterprise-level feature and typically require a Microsoft 365 E3, E5, or equivalent business subscription to configure and deploy.

Will a standard Excel file password work if I email the file?

Yes, standard file-level password encryption travels with the document itself. Anyone who receives the file via email or download will be prompted to enter the password to open it.

Document & File Issues