Outlook password requirement

For Outlook in Microsoft 365, the password prompt is usually asking for the password for the email account that Outlook is trying to open.

• If the mailbox is an Outlook.com, Hotmail, Live, or MSN account, use the Microsoft account password for that email address.
• If the mailbox is from another provider, Outlook needs that provider’s email password instead.

For Outlook on Windows, these are the supported fixes from the documented issues:

1. If Outlook asks for the password every time, or shows Need Password, check whether Allow Office to connect to the Internet is turned on:
   • Open Outlook.
   • Go to Trust Center Privacy Options.
   • Make sure Allow Office to connect to the Internet is selected.
2. If Outlook is an older affected version, change the Exchange account security setting:
   • Exit Outlook.
   • Open Control Panel > Mail.
   • Select Show Profiles > the Outlook profile > Properties.
   • Click E-mail Accounts.
   • Select the email account and click Change.
   • Click More Settings.
   • On the Microsoft Exchange dialog, open the Security tab.
   • Set Logon network security to Anonymous Authentication.
   • Click OK, then Next, Finish, and close the dialogs.
3. If Outlook for Microsoft 365 stopped remembering the password after certain Windows 10 updates, install the Windows update that fixed that issue: February 2, 2021—KB4598291 (OS Builds 19041.789 and 19042.789) Preview.
4. If the mailbox is a password-protected Outlook Data File (.pst), the password is separate from the Microsoft 365 subscription. That password is case-sensitive, and Microsoft can’t recover it if it was forgotten.

If the issue is with a newer Outlook 2013 or Outlook 2016 build connected to an Exchange Online mailbox, the documented next step is to run the Diag: Outlook keeps asking for my password self-diagnostics tool.

References:

• Outlook continually prompts for your password when you try to connect to Microsoft 365
• Password prompt at every Outlook start or can't create profile
• Outlook and other apps won't remember password after Windows Updates
• My Outlook Data File (.pst) password doesn’t work
• Outlook access denied, asking for password - Microsoft Q&A