The answer is Azure AD Connect with password hash synchronization selected and the Microsoft Entra ID service to process synchronization. These two components are required because Azure AD Connect acts as the local sync engine, hashing on-premises Active Directory passwords and securely transmitting them to the cloud, while the Microsoft Entra ID service must receive and store those hashes in the cloud directory to enable authentication against Entra ID. On the MS-102 exam, this question tests your understanding that password synchronization is a two-sided process—many candidates mistakenly think only the on-premises tool is needed, but without the cloud-side service processing the hashes, authentication fails. A common trap is selecting Azure AD Connect alone, forgetting that Entra ID must actively accept and store the synchronized data. Memory tip: think “sync out and sync in”—Azure AD Connect pushes the hash out, and Entra ID pulls it in to complete the loop.
MS-102 Deploy and manage a Microsoft 365 tenant Practice Question
This MS-102 practice question tests your understanding of deploy and manage a microsoft 365 tenant. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 organization is planning to migrate from on-premises Active Directory to Microsoft Entra ID using Azure AD Connect. You need to ensure that password synchronization is enabled. Which TWO components are required for password synchronization to work?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Azure AD Connect with password hash synchronization selected.
Option A is correct because Azure AD Connect with password hash synchronization (PHS) selected is the component that hashes the on-premises Active Directory password and synchronizes it to Microsoft Entra ID. Option E is correct because the Microsoft Entra ID service must process the incoming password hashes and store them in the cloud directory, enabling authentication against Entra ID. Without both the local sync engine (Azure AD Connect) and the cloud-side service, password synchronization cannot function.
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.
✓
Azure AD Connect with password hash synchronization selected.
Why this is correct
Azure AD Connect must have password hash synchronization enabled.
Related concept
Read the scenario before looking for a memorised answer.
✗
Active Directory Federation Services (AD FS).
Why it's wrong here
AD FS is not required for password sync; it is for federation.
✗
Password Writeback enabled.
Why it's wrong here
Password Writeback allows users to reset passwords from cloud, but is not required for synchronization.
✗
Microsoft Identity Manager (MIM).
Why it's wrong here
MIM is not required for password sync; Azure AD Connect handles it.
✓
Microsoft Entra ID service to process synchronization.
Why this is correct
The Microsoft Entra ID service receives and processes the password hashes.
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 often confuse Password Writeback (a separate feature for cloud-to-on-premises password changes) as a prerequisite for password synchronization, when in fact it is an optional add-on that is not required for the one-way sync of password hashes from on-premises to the cloud.
Detailed technical explanation
How to think about this question
Password hash synchronization works by Azure AD Connect reading the password hash from the on-premises AD domain controller using the MS-DRSR protocol, then applying a one-way hash (MD4, then SHA-256, then salting) before transmitting it over HTTPS to the Entra ID service. The cloud service stores this hash and uses it to authenticate users without requiring the original plaintext password, enabling seamless hybrid authentication even if federation is not deployed.
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 MS-102 question in full detail.
Deploy and manage a Microsoft 365 tenant — This question tests Deploy and manage a Microsoft 365 tenant — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Azure AD Connect with password hash synchronization selected. — Option A is correct because Azure AD Connect with password hash synchronization (PHS) selected is the component that hashes the on-premises Active Directory password and synchronizes it to Microsoft Entra ID. Option E is correct because the Microsoft Entra ID service must process the incoming password hashes and store them in the cloud directory, enabling authentication against Entra ID. Without both the local sync engine (Azure AD Connect) and the cloud-side service, password synchronization cannot function.
What should I do if I get this MS-102 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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