Outlook Login Problems

How to Fix Outlook Password Error for a Hotmail Account

Maira Mehtab Oct 12, 2026 869 views

Question details

The user is experiencing recurring password errors when trying to connect or sync a Hotmail account via Microsoft Outlook.

How to Fix Outlook Password Error for a Hotmail Account

Product: Microsoft Outlook
Device & OS: not provided
Scenario: Attempting to access, sync, or configure a Hotmail email account using the Outlook desktop application.
Observed behavior: Outlook repeatedly displays an error message or a password prompt, failing to accept the correct Hotmail account password.

Before you start

Verify that you have a stable internet connection and ensure your password is correct by successfully logging into your Hotmail account via a web browser.

Solution 1Recommended

Clear Cached Credentials in Windows

Removing outdated or corrupted passwords from your system ensures Outlook prompts you for fresh credentials.

Sometimes Windows saves an old or incorrect password, causing Outlook to repeatedly attempt to log in with the wrong credentials in the background.

Close Microsoft Outlook

Ensure the Outlook application is completely closed before modifying your system credentials.

Open Credential Manager

Click the Windows Start menu, type 'Credential Manager' into the search bar, and press Enter.

Locate Windows Credentials

Select the 'Windows Credentials' tab to view all saved passwords on your local device.

Remove Outlook Passwords

Scroll through the list to find any entries containing 'Outlook', 'MicrosoftAccount', or your Hotmail email address. Click the downward arrow next to the entry and select 'Remove'.

Restart and Log In

Relaunch Outlook. When prompted, enter your current Hotmail password and check the box to remember the password.

Cache Cleared: Clearing credentials safely forces Outlook to establish a brand-new connection with Microsoft's authentication servers.

Solution 2

Generate an App Password for Two-Factor Authentication

If you have Two-Step Verification turned on, older versions of Outlook may require a special app password instead of your standard Hotmail password.

Solution 3

Remove and Re-add the Hotmail Account

A fresh configuration can resolve underlying profile corruption or outdated server settings causing the password error.

Free Microsoft Office alternative

Looking for a Hassle-Free Office Suite? Try WPS Office

If you are tired of dealing with complex configuration errors and recurring sign-in issues in Microsoft Office, consider switching to WPS Office. It provides a lightweight, highly compatible alternative for your document, spreadsheet, and presentation needs.

1. Download the installer: Visit the official WPS website and download the free installation package for your system.
2. Install WPS Office: Run the installer and follow the on-screen instructions to complete the setup in minutes.
3. Open and edit files: Launch WPS Office and immediately start working on your DOCX, XLSX, and PPTX files without complicated sign-ins.

Seamless compatibility with Microsoft Word, Excel, and PowerPoint formats.Lightweight software that runs smoothly on almost any device.Free to use with a familiar, user-friendly interface.No complex account syncing issues just to edit your documents locally.

microsoft office alternative - wps office

Frequently Asked Questions

Why does Outlook keep asking for my Hotmail password?

This usually happens due to cached outdated passwords in Windows, enabled Two-Factor Authentication requiring an app password, temporary network issues, or third-party antivirus software blocking the connection.

What is an app password and how do I get one for Hotmail?

An app password is a one-time code generated in your Microsoft account's security dashboard. It allows older email clients to bypass Two-Factor Authentication securely. You can generate one under 'Advanced security options' in your Microsoft account settings online.

Will removing my Hotmail account from Outlook delete my emails?

No, removing your Hotmail account from the Outlook desktop app only removes the local profile configuration. Your emails, contacts, and calendar events are safely stored on Microsoft's servers and will automatically resync when you re-add the account.

Can outdated Outlook software cause password errors?

Yes. Microsoft frequently updates its security protocols. If your version of Outlook is outdated, it may no longer support modern authentication (OAuth2), resulting in continuous password prompts. Updating your Office suite can resolve this.

Outlook & Email Problems