Conditional Access Problems

Fix Azure AD Conditional Access Blocking Microsoft 365 on RDS

Emma BrownEmma Brown Oct 29, 2026 869 views

Question details

Users are being denied access to Microsoft 365 applications from a Remote Desktop Services (RDS) server due to Azure AD Conditional Access policies blocking the connection.

How to Fix Azure AD Conditional Access Denying Microsoft 365 on RDS
Product
Microsoft 365 / Azure AD
Device & OS
Windows Server / RDS
Scenario
Attempting to access and authenticate Microsoft 365 desktop apps within a Remote Desktop Services environment.
Observed behavior
Sign-ins to Microsoft 365 are blocked by Conditional Access, even when the RDS server appears to be Azure AD joined and compliant.
Before you start

Ensure you have Global Administrator or Conditional Access Administrator privileges in the Microsoft Entra ID (formerly Azure AD) portal to view sign-in logs and modify security policies.

Solution 1Recommended

Review Sign-in Logs and Modify Conditional Access Policies

Use the Microsoft Entra ID sign-in logs to identify exactly which Conditional Access policy is blocking the RDS users and adjust the device or location conditions.

When an RDS server connects to Microsoft 365, Conditional Access evaluates the session based on IP address, device state, and operating system. In virtualized environments, the device identity or compliance status might not pass through correctly, triggering a block.

1
Access Microsoft Entra admin center

Log in to the Microsoft Entra admin center (or Azure Portal) using your administrator credentials.

2
Navigate to Sign-in Logs

Go to Identity > Users > All users. Search for and select a user who experienced the blocked access on the RDS server, then click on 'Sign-in logs' in the left menu.

3
Analyze the Failed Sign-in

Locate the failed sign-in attempt corresponding to the RDS session. Click on the log entry to open the Activity Details pane.

4
Check the Conditional Access Tab

In the details pane, select the 'Conditional Access' tab. Identify the specific policy that shows a 'Failure' result.

5
Verify Policy Conditions

Check the policy settings under Protection > Conditional Access. Ensure the RDS server's public IP address, operating system, and Azure AD join status meet the strict requirements, or add an exclusion for the RDS environment if necessary.

RDS Device Join Status: RDS servers often have unique device identity behaviors in Azure AD. Ensure Hybrid Azure AD Join is properly configured and synced if your Conditional Access policies require a compliant or hybrid-joined device.
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Frequently Asked Questions

Why does Conditional Access block my Azure AD joined RDS server?

Conditional Access may block the server if the policy requires a specific operating system, a trusted network location, or a compliant device state that the RDS session is failing to pass through to Azure AD during the authentication process.

How do I check if my RDS server is properly Azure AD joined?

You can verify the device registration status by opening a Command Prompt as an administrator on the RDS server and running the command 'dsregcmd /status'. Look for 'AzureAdJoined : YES' in the output.

Can I exclude my RDS server from Conditional Access policies entirely?

Yes, administrators can create a 'Named location' in Microsoft Entra ID for the public IP address of the RDS server. You can then add this location to the exclusion list of the Conditional Access policy that is currently blocking users.