Quick Answer
The answer is Password hash synchronization (PHS). This is the correct choice because PHS is the specific Microsoft Entra ID Connect feature that replicates password hashes from on-premises Active Directory to the cloud, directly enabling both Microsoft Entra ID Password Protection and Identity Protection. Password Protection uses these synchronized hashes to block weak passwords against a global banned password list, while Identity Protection compares them against known compromised credential databases to detect leaked credentials—neither feature can function without access to the on-premises hashes. On the AZ-500 exam, this question tests your understanding of how PHS underpins cloud-based security controls, often appearing as a distractor alongside pass-through authentication or federation; the trap is assuming any sync method works, but only PHS provides the actual hash data. Memory tip: think “PHS = Password Hash Sync = Protection & Hash Security,” linking the feature directly to the two protection services it unlocks.
This AZ-500 practice question tests your understanding of secure identity and access. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are configuring Microsoft Entra ID Connect to synchronize on-premises Active Directory identities to the cloud. You need to ensure that password hashes are synchronized to enable Microsoft Entra ID Password Protection and Identity Protection. Which option should you enable?
Pass-through authentication
Why wrong: PTA does not synchronize password hashes.
Federation with AD FS
Why wrong: Federation does not sync password hashes.
Password hash synchronization
PHS syncs password hashes for Identity Protection and Password Protection.
Azure AD Connect Health
Why wrong: Connect Health monitors sync health but does not sync password hashes.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Password hash synchronization
Password hash synchronization (PHS) is the correct option because it is the specific feature that synchronizes password hashes from on-premises Active Directory to Microsoft Entra ID. This enables Microsoft Entra ID Password Protection (which blocks weak passwords by comparing against a global banned password list) and Identity Protection (which detects leaked credentials by comparing synchronized hashes against known compromised password databases). Without PHS, these cloud-based security features have no access to the on-premises password hashes.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Pass-through authentication
Why it's wrong here
PTA does not synchronize password hashes.
Federation with AD FS
Why it's wrong here
Federation does not sync password hashes.
Password hash synchronization
Why this is correct
PHS syncs password hashes for Identity Protection and Password Protection.
Related concept
Read the scenario before looking for a memorised answer.
Azure AD Connect Health
Why it's wrong here
Connect Health monitors sync health but does not sync password hashes.
Common exam traps
The trap here is that candidates often confuse Pass-through authentication with Password hash synchronization, assuming that any password validation method that touches on-premises AD will automatically provide hash data for cloud security features, but only PHS actually stores the hashes in Microsoft Entra ID.
Detailed technical explanation
Password hash synchronization uses the Microsoft Entra Connect sync engine to extract password hashes from on-premises AD (using the MS-DRSR protocol) and synchronizes them to Microsoft Entra ID via HTTPS. The hashes are salted and hashed again (using PBKDF2 with SHA256) before storage in the cloud, ensuring that the original plaintext password is never exposed. In a real-world scenario, enabling PHS alongside Pass-through authentication (as a fallback) is common to gain the security benefits of both features without sacrificing user experience.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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FAQ
Secure identity and access — This question tests Secure identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Password hash synchronization — Password hash synchronization (PHS) is the correct option because it is the specific feature that synchronizes password hashes from on-premises Active Directory to Microsoft Entra ID. This enables Microsoft Entra ID Password Protection (which blocks weak passwords by comparing against a global banned password list) and Identity Protection (which detects leaked credentials by comparing synchronized hashes against known compromised password databases). Without PHS, these cloud-based security features have no access to the on-premises password hashes.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 2026
This AZ-500 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-500 exam.
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