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SMTP Email OAuth2.0

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Posted on by haryadihart

and Hi All,

I see there is an update to the SMTP setup in business central which we can do custom OAuth2.0. does anyone made it successfully to test?

I have registered app registration, add API permission related to email, but seems not works.

got error:
The SMTP server rejected the authentication request, as the authentication data is incorrect. Verify that your Username and Password are correct and that the SMTP server supports the specified authentication type (OAuth 2.0). SMTP error code: 535. Status code: 535:

and also got error:
Unable to get SMTP Account password

Can anyone help point out whats the step and what might be missing?

Thanks

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Dynamics 365 Business Central

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CU30040957-0 22 on at

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Hi @haryadihart,

You can try after testing the OAuth setup following the below steps :-

1) Turn off Use Custom OAuth 2.0 Setting

2) Login Microsoft Admin Centre with the Admin Access

3) Navigate to Active Users and find the User Account you've specify in your Email Account.

4) Navigate to Mail section -> Manage email Apps

5) Enable Authenticated SMTP option and Save changes

6) Try sending a test email from the configured email account.

Please let me know if this works for you, if not, please let me know the error you're facing.

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OussamaSabbouh 17,521 Super User 2026 Season 1 on at

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Hello,

OAuth2 SMTP in BC works, but you must use Exchange Online “SMTP.SendAsApp” (Office 365 Exchange Online app permission + admin consent) and ensure SMTP AUTH + OAuth2 are enabled in Exchange Online; Graph mail permissions alone won’t do it. Your 535 typically means SMTP AUTH is disabled, the Tenant ID is wrong, or OAuth2ClientProfileEnabled isn’t enabled (check Get-TransportConfig → SmtpClientAuthenticationDisabled = False and Get-OrganizationConfig → OAuth2ClientProfileEnabled = True). The “Unable to get SMTP Account password” error usually comes from the secret/password not being saved/available (for example after company copy you must re-enter it).

Regards,
Oussama Sabbouh

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Dhiren Nagar 2,890 Super User 2026 Season 1 on at

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Hi,

Yes it works and the detailed steps and clarification are mentioned in this post here - https://yzhums.com/54545/

✅ Tick the checkbox below to mark the answer as verified, if it helped resolve your question.

Regards,

Dhiren.

LinkedIn - https://www.linkedin.com/in/ca-dhiren-nagar-5079081b2/

Blog - https://dhirennagar.blogspot.com/

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CU03031424-0 2 on at

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There is a bug in Microsoft code.

(Requires the Account password for OAuth).

It was checked for multi-tenant environment (when smtp is in one tenant, BC is in another).

Microsoft promises to fix it in 28 version.

Please don't forget Allow HttpClient Requests for all email extensions in Extension Management (if you are in sandbox).

And: Everyone who uses the email features must be a fully licensed Business Central. For example, delegated admins and guest users can't use the tenant's email account.

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