Quick Answer
The answer is Password Hash Synchronization (PHS). This feature works by taking the hash of a user’s on-premises Active Directory password and securely syncing it to Microsoft Entra ID, so users can authenticate to cloud services using their existing password without needing any additional on-premises infrastructure like federation servers. On the MS-102 exam, this scenario tests your understanding of how cloud sync handles authentication—the key trap is confusing PHS with Pass-through Authentication (PTA) or federation, but remember that cloud sync relies exclusively on PHS to replicate password hashes. A common memory tip: think of PHS as a “copy and paste” of the password hash, not a live validation—it’s the simplest, most lightweight method for seamless cloud authentication.
This MS-102 practice question tests your understanding of implement and manage microsoft entra 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 planning a migration from on-premises Active Directory to Microsoft Entra ID using cloud sync. You need to synchronize user passwords so that users can authenticate using their existing passwords. Which feature should you enable?
Pass-through Authentication
Why wrong: PTA validates passwords on-premises, does not sync hashes.
Password Hash Synchronization
PHS syncs password hashes for cloud authentication.
Federation with AD FS
Why wrong: Federation uses on-premises identity provider.
Seamless Single Sign-On
Why wrong: Seamless SSO provides automatic sign-in but does not sync passwords.
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 feature because it synchronizes the hash of a user's on-premises Active Directory password to Microsoft Entra ID, allowing users to authenticate with the same password without any additional on-premises infrastructure. Cloud sync specifically relies on PHS to replicate password hashes from AD to Entra ID, enabling seamless authentication for cloud-based services.
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 validates passwords on-premises, does not sync hashes.
Password Hash Synchronization
Why this is correct
PHS syncs password hashes for cloud authentication.
Related concept
Read the scenario before looking for a memorised answer.
Federation with AD FS
Why it's wrong here
Federation uses on-premises identity provider.
Seamless Single Sign-On
Why it's wrong here
Seamless SSO provides automatic sign-in but does not sync passwords.
Common exam traps
The trap here is that candidates often confuse Pass-Through Authentication with password synchronization, but PTA does not synchronize hashes—it only validates passwords in real time against on-premises AD, which is not the same as synchronizing passwords for cloud sync.
Detailed technical explanation
Password Hash Synchronization uses the Microsoft Entra Connect Sync engine to compute a SHA256 hash of the on-premises password hash (which itself is an MD4 hash of the UTF-16-encoded password) and securely transmits it to Entra ID via HTTPS. This allows users to authenticate against Entra ID even if the on-premises domain controller is unreachable, and it also enables features like leaked credential detection and Identity Protection. In a cloud sync scenario, the provisioning agent handles the synchronization of these hashes without requiring a full Entra Connect server.
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
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Implement and manage Microsoft Entra identity and access — study guide chapter
Learn the concepts, then practise the questions
Implement and manage Microsoft Entra identity and access practice questions
Targeted practice on this topic area only
All MS-102 questions
975 questions across all exam domains
Microsoft 365 Administrator MS-102 study guide
Full concept coverage aligned to exam objectives
MS-102 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Practise MS-102 questions linked to Deploy and manage a Microsoft 365 tenant.
Practise MS-102 questions linked to Implement and manage Microsoft Entra identity and access.
Practise MS-102 questions linked to Manage security and threats by using Microsoft Defender XDR.
Practise MS-102 questions linked to Manage compliance by using Microsoft Purview.
Practise MS-102 questions linked to Manage users, groups, licensing, and support.
Practise MS-102 questions linked to Implement and manage identity and access in Microsoft Entra ID.
Practise MS-102 questions linked to MS-102 fundamentals.
Practise MS-102 questions linked to MS-102 scenario.
Practise MS-102 questions linked to MS-102 troubleshooting.
Practice this exam
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra 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 feature because it synchronizes the hash of a user's on-premises Active Directory password to Microsoft Entra ID, allowing users to authenticate with the same password without any additional on-premises infrastructure. Cloud sync specifically relies on PHS to replicate password hashes from AD to Entra ID, enabling seamless authentication for cloud-based services.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization is migrating from on-premises Active Directory to Microsoft Entra ID. You need to ensure that users can use their existing on-premises passwords to log in to cloud services, while maintaining password policy enforcement on-premises. Which feature should you implement?
mediumWhy A: Password Hash Synchronization (PHS) synchronizes the hash of on-premises Active Directory user passwords to Microsoft Entra ID, enabling users to log in to cloud services with the same password. It enforces password policies on-premises because the on-premises domain controller remains the authoritative source for password complexity, expiration, and lockout rules. PHS does not require additional infrastructure beyond Azure AD Connect and works even if the on-premises network is temporarily unavailable.
Variation 2. You have a hybrid identity environment with Microsoft Entra ID and Active Directory Domain Services (AD DS). You need to ensure that user passwords are synchronized to Microsoft Entra ID without any hashing of passwords. Which tool should you use?
mediumWhy D: Microsoft Entra Connect Sync with password hash synchronization (PHS) is the correct choice because it synchronizes a hash of the user's password hash from on-premises AD DS to Microsoft Entra ID, not the plaintext password. The question states 'without any hashing of passwords,' which is technically impossible for password synchronization—PHS always hashes the password hash. However, among the options, only PHS performs password synchronization; the others do not synchronize passwords at all. The key nuance is that PHS synchronizes a hash of the hash (i.e., the password hash is hashed again), so the original plaintext password is never stored or transmitted.
Last reviewed: Jun 24, 2026
This MS-102 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 MS-102 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.