Security Policy Errors

How to Enable External Email Forwarding for Selected Microsoft 365 Users

Muhammad TalhaMuhammad Talha Nov 2, 2026 873 views

Question details

The administrator needs to allow specific users within the organization to automatically forward emails to external addresses without enabling this feature globally for all users.

How to Enable External Email Forwarding for Selected Microsoft 365 Users
Product
Microsoft 365
Device & OS
not provided
Scenario
Configuring selective external email forwarding permissions for a distinct group of users while maintaining the default block on automatic external forwarding across the rest of the tenant.
Observed behavior
External automatic forwarding is disabled by default organization-wide, preventing users from creating their own rules to forward emails outside the company.
Before you start

Ensure you have Exchange Online Administrator or Global Administrator privileges in Microsoft 365, as modifying outbound anti-spam policies or transport rules requires elevated administrative permissions.

Solution 1Recommended

Create a Custom Outbound Anti-Spam Policy (Recommended)

This is the most secure and standard method to allow specific users or groups to forward emails externally without altering the organization's default security posture.

By default, Microsoft 365 blocks automatic forwarding to external domains to prevent data exfiltration. Instead of changing the default policy, administrators should create a new, targeted outbound spam filter policy.

This method does not require PowerShell; it can be entirely configured through the Microsoft 365 Defender portal.

1
Access the Microsoft 365 Defender Portal

Log in to the Microsoft 365 Defender portal at security.microsoft.com using your admin credentials.

2
Navigate to Anti-Spam Policies

Go to 'Email & collaboration' > 'Policies & rules' > 'Threat policies' > 'Anti-spam' in the left-hand navigation pane.

3
Create a New Outbound Policy

Click on 'Create policy' and select 'Outbound'. Give the policy a descriptive name, such as 'Allow External Forwarding for Selected Users', and click Next.

4
Define the Scope (Users or Groups)

In the 'Users, groups, and domains' section, add the specific users or Microsoft 365 groups that require external forwarding permissions.

5
Enable Automatic Forwarding

Proceed to the 'Protection settings' section. Under 'Forwarding rules', select 'On - Forwarding is enabled' from the dropdown menu, then save and activate the policy.

Create a Custom Outbound Anti-Spam Policy (Recommended)
Policy Application Time: It may take up to an hour for the newly created anti-spam policy to propagate and take effect across your Microsoft 365 tenant.
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Frequently Asked Questions

Is PowerShell required to enable external email forwarding in Microsoft 365?

No, PowerShell is not strictly required. While you can use PowerShell to configure these settings, administrators can easily create custom outbound anti-spam policies directly through the graphical interface of the Microsoft 365 Defender portal.

Why do my users receive bounce-back messages when setting up Inbox rules to forward emails?

This occurs because Microsoft 365's default outbound anti-spam policy blocks automatic external forwarding to protect against data leaks. Unless an exception is created for those specific users, the server will reject the forwarding attempt and send a non-delivery report (NDR).

Can I allow external forwarding for my entire organization instead of selected users?

Yes, but it is highly discouraged for security reasons. If absolutely necessary, you can modify the default outbound anti-spam policy in the Microsoft 365 Defender portal and set 'Automatic forwarding rules' to 'On - Forwarding is enabled', which will apply to the entire tenant.

What is the difference between an anti-spam policy forwarding exception and a mail flow rule?

An anti-spam policy exception allows users to safely set up their own forwarding rules (like Outlook Inbox rules) without being blocked. A mail flow (transport) rule is an admin-enforced server-side rule that automatically routes or copies messages behind the scenes, overriding user settings.