Passwords, let’s face it, can be a real pain. While going passwordless is ideal, many of us still rely on them. Fortunately, Microsoft Entra Password Protection offers a smart solution to enhance security by blocking weak and commonly used passwords. It utilizes both Microsoft’s global banned password list and allows for custom entries, ensuring that predictable choices like “Winter2024!” or “CompanyName123” are off-limits. For instance, if you’re in Texas and want to prevent the use of “Cowboys” as a password, you can easily add it to your banned list.
Setting Up Password Protection in Your Tenant
To get started, download the required files:
- AzureADPasswordProtectionDCAgentSetup.msi
- AzureADPasswordProtectionProxySetup.exe
Microsoft provides a handy diagram below on how this all works, but let’s break it down step by step.

Step 1: Setting Up the Password Protection Proxy
Microsoft has a few prerequisites, but the general process goes like this:
- Install the proxy setup file on a designated server. If you’re in a production environment, it’s best to have multiple proxies for redundancy. (I’m just using one in my test setup.)
- The installer will not prompt you for a restart, but trust me, just go ahead and reboot. It helps.

Step 2: Register the Proxy Service
Now that our proxy service server is up and running, we need to register it. Here’s what you need to do:
- Import the AzureADPasswordProtection module.
- Make sure the password protection proxy service is running.
- Run the following command (with Global Admin credentials the first time you do this):
Register-AzureADPasswordProtectionProxy -AccountUpn '[email protected]'
- After that, test your setup to confirm everything is working as expected.

Step 3: Register Your On-Premises Active Directory
Next up, we install the DC Agent on all domain controllers. It’s a super simple install just click a button, let it do its thing, and restart when prompted. (Yes, another restart. Just go with it.) Be sure to grab the prerequisites for this installation.

After rebooting, we run similar commands as before to verify everything is properly registered. If all checks pass, we’re good to move on.

Configuring Password Protection in Entra
Now that our on-premises setup is done, let’s configure our policies in Entra:
- Head over to Authentication Methods > Password Protection.
- Set up the Password Protection policy, including Smart Lockout and your custom banned password list.
- Want to block specific words? Go for it! In my case, I’m banning anything that resembles “Cowboys.” And just for fun, I’m also blocking “poptart” because some of us are obsessed with them.
- Enable Password Protection on Windows Server AD to enforce the policies we just created.
- Set Mode to Audit first so you can see what passwords are getting flagged before enforcing it.

Putting It to the Test
Once everything is in place, I tried changing my password to something resembling “poptart” and boom rejected faster than a vegetarian at a BBQ competition.

A quick check of the event logs under: \Applications and Services Logs\Microsoft\AzureADPasswordProtection\DCAgent\Admin confirmed that my new password was rejected due to Azure’s Password Policy. Success!

Final Thoughts
Entra Password Protection is an easy way to step up your security game while still keeping things simple for your users. It helps eliminate those embarrassingly weak passwords, protects your organization from brute-force attacks, and lets you have a little fun customizing your banned password list (within reason, of course).
So go ahead give it a try, ban some bad passwords, and sleep a little better at night knowing your users won’t be securing their accounts with “Password123!” anymore.