How to Add a User in the Microsoft 365 Admin Center
Step-by-step guide to creating a user account in the Microsoft 365 admin center, including domain selection, password options, license assignment, and PowerShell.
TL;DR: In the Microsoft 365 admin center, go to Users > Active users, pick the user, select Reset password. Choose auto-generate or set your own, leave Require this user to change their password when they first sign in checked, and hand off the credentials securely. As of August 2024, Microsoft removed in-product email of credentials — print to PDF and share through a secure channel.
Forgotten passwords are one of the most common helpdesk tickets. This guide covers the manual reset, the bulk reset for up to 40 users at once, and how to set up self-service password reset (SSPR) so users can do this themselves.
Resetting a password in the Microsoft 365 admin center writes a new password to the user’s Microsoft Entra ID account. The optional Require this user to change their password when they first sign in flag forces the user to set a new password the next time they authenticate, which is the right default — you never have to know the long-term password.
Resetting the password does not sign the user out of existing sessions. Tokens issued before the reset stay valid until they expire (typically up to an hour). For account compromises or terminations, follow the reset with Sign out of all sessions to revoke tokens immediately.
Microsoft removed the in-product “email this password” feature on August 30, 2024 for security reasons. Plain-text password emails were never a good idea; now the admin center won’t send them at all.
If you’re resetting because of a compromise or termination, also revoke existing tokens:
The user is prompted to sign in again within an hour (whenever their current access token expires). For an immediate revocation via PowerShell:
Connect-MgGraph -Scopes "User.RevokeSessions.All"
Revoke-MgUserSignInSession -UserId "jakob@contoso.com"
For a larger reset window — say, after a phishing campaign:
Global Administrators can reset other Global Administrators’ passwords — but if you’re the only Global Admin and you’ve forgotten yours, you have two options:
This is exactly why you should always have at least two Global Administrator accounts (or one Global Admin plus one Privileged Authentication Administrator).
For organizations larger than a handful of users, self-service password reset (SSPR) dramatically cuts helpdesk volume. Microsoft includes it free with all Microsoft 365 plans for cloud-only password resets; on-premises writeback requires Microsoft Entra ID P1.
To enable it:
Users register at https://aka.ms/ssprsetup on first prompt and reset at https://passwordreset.microsoftonline.com when they’re locked out.
For scripted resets, use Microsoft Graph PowerShell:
Connect-MgGraph -Scopes "Directory.AccessAsUser.All"
$password = @{
Password = "TempReset!ChangeMeNow123"
ForceChangePasswordNextSignIn = $true
}
Update-MgUser `
-UserId "jakob@contoso.com" `
-PasswordProfile $password
# Then revoke existing sessions
Revoke-MgUserSignInSession -UserId "jakob@contoso.com"
Step-by-step guide to creating a user account in the Microsoft 365 admin center, including domain selection, password options, license assignment, and PowerShell.
Plain-English overview of the most-used Microsoft 365 admin roles, what each can do, when to use them, and the principle of least privilege in practice.