This is one of the most awaited features for Office 365 users. Till now if we wanted to have password synchonized between onpremise Active Directory and cloud ( office 365) we have to implement ADFS.

But now, with Directory Synchonization tool, you can not only sync user account and properties, but you can also sync password of those user accounts 🙂

To get the lastest Directory Synchronization tool, go to If you already have installed a previous version of it, you will need to uninstall it and and reinstall the lastest one. There is no upgrade path. You must be running version 6382.0000 or greater of the Directory Sync tool in order to enable the Password Sync feature.

When you install the tool, it will do a full sync from onpremise to cloud. You cannot choose the set of users that will have their passwords synchronized to the cloud. When an on-premises user changes their password, the Password Sync feature will detect and synchronize the changed password, most often in a matter of minutes. NOTE: The synchronization of a password has no impact on currently logged on users. If a user that is logged into a cloud service also changes their on-premise password, the cloud service session will continue uninterrupted. However, as soon as the cloud service attempts requires the user to re-authenticate, the new password needs to be provided. At this point, the user is required to provide the new password – the password that has been recently synchronized from the on-premise Active Directory to the cloud.

Installation of the new version if same as the previous version, except a new screen has been introduced. Below is the snapshot of it.


Just check the box and you are ready to go.

Happy Syncing!!..