Fixing the Outlook password prompt that keeps popping up on Microsoft 365 usually comes down to stale saved credentials or one stubborn setting. The prompt appears, the correct password is typed, and it returns a minute later. The steps below clear the cause in the order that resolves it fastest, starting with the simplest checks.
Key Takeaways
- Most repeat prompts come from outdated saved credentials in Windows Credential Manager.
- Turning off ‘Always prompt for logon credentials’ in the account settings stops a common trigger.
- Updating Microsoft 365 Apps and signing out of the Office account clears many sign-in glitches.
- A fresh Outlook profile is the final fix when nothing else works.
Step-by-Step Guide to Fix the Outlook Password Prompt That Keeps Popping Up on Microsoft 365
These steps apply to classic Outlook for Windows that comes with Microsoft 365 Apps. Work through them in order and test Outlook after each group. Most people find the problem disappears before reaching the end.
Confirm the Password and Update Outlook
- Step 1: Open a browser, go to outlook.office.com, and sign in with the same email and password. If the sign-in fails or asks for a new password, the account itself needs attention, such as a recent password change or an expired password. Fix that first, then continue.
- Step 2: Open Outlook, select File, then Office Account, then Update Options, and choose Update Now. Let the update finish and restart Outlook when prompted. An outdated build is a frequent reason for a sign-in loop.
Turn Off the Always Prompt Setting
- Step 3: In Outlook, select File, then Account Settings, and choose Account Settings again from the drop-down list.
- Step 4: On the Email tab, select the affected Microsoft 365 account and choose Change.
- Step 5: Select More Settings, open the Security tab, and clear the check box next to ‘Always prompt for logon credentials’. Select OK, then Next, then Finish.
This setting is a common culprit. It forces Outlook to ask for a password every time it connects, even when a valid one is saved.
Clear the Saved Credentials in Windows
- Step 6: Close Outlook completely. If it hangs in the background, press Ctrl + Shift + Esc to open Task Manager, select Outlook, and choose End task.
- Step 7: Select the Start button, type Credential Manager, and open it. Choose Windows Credentials.
- Step 8: Look through the list for entries that begin with MicrosoftOffice16_Data or that mention outlook.office365.com. Expand each entry and select Remove. Repeat until none are left.
- Step 9: Restart the computer, open Outlook, and sign in once when asked. Complete any multi-factor approval that appears. Outlook then saves a fresh, clean credential.
Tip: Think of Credential Manager as a drawer of old keys. If one key no longer fits the lock, Outlook keeps trying it and asking for help. Removing the old keys forces Outlook to cut a new one.
Sign Out of the Office Account
- Step 10: If the prompt still returns, open Outlook, select File, then Office Account, and choose Sign out. Close all Office apps, reopen Outlook, and sign in again with the work or school email address.
Create a New Outlook Profile
- Step 11: Close Outlook. Select the Start button, type Control Panel, and open it. Search for Mail and open Mail (Microsoft Outlook).
- Step 12: Select Show Profiles, then Add. Enter a new profile name, such as Outlook New, and select OK.
- Step 13: Enter the Microsoft 365 email address, choose Connect, and follow the sign-in prompts. Select Finish when the setup completes.
- Step 14: Back on the Mail screen, choose ‘Always use this profile’, select the new profile from the list, and choose OK. Open Outlook and check that mail loads without a password prompt.
Tip: Leave the old profile in place until the new one works properly. It can be removed later from the same Show Profiles screen.
Common Problems and Fixes
The Prompt Returns Right After Clearing Credentials
Another Office app may be running in the background and saving the old sign-in again. Close Teams, OneNote, and any other Office app, then repeat Steps 6 to 9. Restarting the computer before opening Outlook helps every time.
The ‘Always prompt for logon credentials’ Option Is Missing
The Security tab only appears for Exchange-based Microsoft 365 accounts. If the account was added as IMAP or POP, the option will not be there. In that case, skip to Step 7 and continue with the credential cleanup.
The Sign-In Window Asks for a Password That Is Already Correct
The password may have changed recently, or the account may require multi-factor approval. Confirm the sign-in works at outlook.office.com. If the browser sign-in works but Outlook keeps failing, sign out of the Office account as described in Step 10.
The Status Bar Shows ‘Need Password’ or ‘Disconnected’
Check that the Work Offline option is off. On the Send / Receive tab, make sure the Work Offline button is not highlighted. Then continue with the credential steps if the message stays.
The Prompt Appears Only After a Computer Restart
This points to a damaged profile rather than a damaged credential. Create a new Outlook profile using Steps 11 to 14.
Frequently Asked Questions
Why does the Outlook password prompt keep popping up on Microsoft 365?
The most common reasons are outdated saved credentials in Windows, the ‘Always prompt for logon credentials’ setting being turned on, an outdated Office build, or a damaged Outlook profile.
Is it safe to delete entries in Credential Manager?
Yes. Removing the Office and Outlook entries only deletes saved sign-in data. Outlook creates new entries the next time a successful sign-in happens.
Which Credential Manager entries should be removed?
Remove the Windows Credentials entries that begin with MicrosoftOffice16_Data and any entries that mention outlook.office365.com. Leave unrelated entries alone.
Will clearing credentials delete emails or contacts?
No. Emails, contacts, and calendar items stay on the Microsoft 365 mailbox. Clearing credentials only removes the saved sign-in details on the computer.
Where is the ‘Always prompt for logon credentials’ setting?
Select File, then Account Settings, then Account Settings. Choose the account, select Change, then More Settings, and open the Security tab. The check box appears there for Exchange-based accounts.
Does changing the Microsoft 365 password cause the prompt?
Yes, it can. Outlook keeps using the old saved password until it is replaced. Enter the new password when asked and clear old credentials from Credential Manager if the prompt continues.
Do I need to reinstall Office to stop the password prompt?
Reinstalling is rarely needed. Updating Office, clearing credentials, signing out of the Office account, and creating a new profile solve almost every case.
How long does a new Outlook profile take to set up?
Setup usually takes a few minutes. The mailbox then needs some extra time to download and sync messages, depending on the mailbox size and connection speed.
Can multi-factor authentication cause repeated password prompts?
It can if the approval is not completed or the saved token has expired. Approve the request when it appears and, if prompts continue, sign out of the Office account and sign in again.
