Using classic Outlook for Windows in business environments
Three separate things have to line up in Exchange Online before Outlook desktop will keep the alias:
- The tenant setting: Exchange admin center → Settings → Mail flow → "Turn on sending from aliases" (
Set-OrganizationConfig -SendFromAliasEnabled $true). Without it, Exchange Online itself rewrites the From to the primary address no matter what the client sends — which is why OWA "working" can be misleading if you only looked at the Sent Items copy. Microsoft's write-up: https://techcommunity.microsoft.com/blog/exchange/sending-from-email-aliases-%E2%80%93-public-preview/3070501 - Outlook must send the alias as a plain SMTP address, not resolve it against a cached contact. Type it into From → Other E-mail Address rather than picking the autocomplete entry, and check the received message's headers, not Sent Items.
- Older Outlook builds rewrote the alias in Online Mode; Microsoft fixed that in a 2024 build, so update the client.
Disclosure: I'm the founder of Servolutions and we make a sender-address add-in — but it targets Exchange on-premises, where no such tenant setting exists. For Exchange Online you don't need it; the three steps above are the whole fix.