The answer is `CREATE USER [app-name] FROM EXTERNAL PROVIDER`. This T-SQL command is correct because it creates a contained database user mapped directly to a Microsoft Entra ID application (service principal) within the Azure SQL Database itself, bypassing the need for a server-level login. In Azure SQL Database, contained database users authenticate at the database level, and the `FROM EXTERNAL PROVIDER` clause links the user to the Entra ID identity, enabling token-based authentication for the application. On the DP-300 exam, this question tests your understanding of modern authentication flows for service principals versus traditional SQL logins; a common trap is confusing this with `CREATE LOGIN` or omitting the square brackets around the application name. Remember that for applications, you must use the exact display name of the Entra ID app registration inside the brackets. A helpful memory tip: think "EXTERNAL PROVIDER" as the bridge between your database and Entra ID—no login needed, just a direct user-to-identity mapping.
DP-300 Implement a secure environment Practice Question
This DP-300 practice question tests your understanding of implement a secure environment. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Your team uses Azure SQL Database and wants to use Microsoft Entra ID authentication. You need to create a contained database user mapped to a Microsoft Entra ID application (service principal). Which T-SQL command should you use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
CREATE USER [app-name] FROM EXTERNAL PROVIDER;
Option D is correct because `CREATE USER [app-name] FROM EXTERNAL PROVIDER` creates a contained database user mapped to a Microsoft Entra ID identity (user, group, or application) directly in the database, without requiring a server-level login. This is the required syntax for authenticating a service principal (application) in Azure SQL Database using Microsoft Entra ID authentication.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
CREATE USER [app-name] FROM LOGIN [app-name];
Why it's wrong here
This maps to a server login, not an Entra ID application.
✗
CREATE LOGIN [app-name] FROM EXTERNAL PROVIDER;
Why it's wrong here
This creates a server-level login, not a contained user.
✗
CREATE USER [app-name] WITH PASSWORD = 'password';
Why it's wrong here
This creates a SQL authenticated user, not Entra ID.
✓
CREATE USER [app-name] FROM EXTERNAL PROVIDER;
Why this is correct
This creates a contained user mapped to an Entra ID identity.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse `CREATE LOGIN ... FROM EXTERNAL PROVIDER` (which creates a server-level principal) with `CREATE USER ... FROM EXTERNAL PROVIDER` (which creates a contained database user), leading them to select Option B when the requirement is specifically for a contained user.
Detailed technical explanation
How to think about this question
When using `FROM EXTERNAL PROVIDER` for a contained user, Azure SQL Database validates the service principal's identity via the Microsoft Entra ID OAuth 2.0 token exchange at connection time. The user's SID is derived from the Entra ID object ID, ensuring that permissions are scoped to the database and that the user can be authenticated without a server-level login—critical for multi-tenant or elastic pool scenarios where server-level objects are undesirable.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this DP-300 question in full detail.
Implement a secure environment — This question tests Implement a secure environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: CREATE USER [app-name] FROM EXTERNAL PROVIDER; — Option D is correct because `CREATE USER [app-name] FROM EXTERNAL PROVIDER` creates a contained database user mapped to a Microsoft Entra ID identity (user, group, or application) directly in the database, without requiring a server-level login. This is the required syntax for authenticating a service principal (application) in Azure SQL Database using Microsoft Entra ID authentication.
What should I do if I get this DP-300 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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