Quick Answer
The answer is Pass-through authentication (PTA). This identity model is the correct choice because it allows users to authenticate against on-premises Active Directory directly, without synchronizing password hashes to the cloud. When a sign-in request reaches Microsoft Entra ID, it is forwarded to an on-premises PTA agent, which validates the credentials against the local domain controller, ensuring no password hash ever leaves the on-premises environment. On the MS-102 exam, this scenario tests your understanding of the core difference between PTA and Password Hash Synchronization (PHS); a common trap is choosing federation (AD FS) when PTA alone suffices, adding unnecessary complexity. Remember that PTA is the simplest cloud-authentication method that avoids hash sync while still enabling seamless single sign-on. A useful memory tip: think “PTA = Proxy To Active Directory” — the password never travels to the cloud, it only passes through.
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 designing a Microsoft Entra ID tenant for a new subsidiary. You need to ensure that users can authenticate using their existing on-premises Active Directory credentials without synchronizing password hashes to the cloud. Which identity model should you choose?
Federation with AD FS
Why wrong: Federation requires additional infrastructure like AD FS.
Cloud-only identity
Why wrong: Cloud-only does not use on-premises AD.
Pass-through authentication (PTA)
PTA validates passwords on-premises without storing hashes in the cloud.
Password hash synchronization (PHS)
Why wrong: PHS synchronizes password hashes to the cloud.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Pass-through authentication (PTA)
Pass-through authentication (PTA) allows users to authenticate against on-premises Active Directory directly, without synchronizing password hashes to the cloud. When a user signs in to Microsoft Entra ID, the authentication request is forwarded to an on-premises PTA agent, which validates the credentials against the local domain controller. This meets the requirement of using existing on-premises credentials without storing password hashes in the cloud.
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.
Federation with AD FS
Why it's wrong here
Federation requires additional infrastructure like AD FS.
Cloud-only identity
Why it's wrong here
Cloud-only does not use on-premises AD.
Pass-through authentication (PTA)
Why this is correct
PTA validates passwords on-premises without storing hashes in the cloud.
Related concept
Read the scenario before looking for a memorised answer.
Password hash synchronization (PHS)
Why it's wrong here
PHS synchronizes password hashes to the cloud.
Common exam traps
The trap here is that candidates often confuse federation (AD FS) with pass-through authentication, assuming that only federation can avoid password hash sync, but PTA also avoids hash sync while being simpler to deploy and manage.
Detailed technical explanation
PTA uses a lightweight agent installed on-premises that listens on port 443 for authentication requests from Microsoft Entra ID. The agent communicates with the on-premises domain controller using Kerberos or NTLM, and the password is never stored in the cloud—only a validation token is returned. This model is ideal for organizations with strict security policies against storing password hashes in the cloud, such as those in highly regulated industries.
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
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: Pass-through authentication (PTA) — Pass-through authentication (PTA) allows users to authenticate against on-premises Active Directory directly, without synchronizing password hashes to the cloud. When a user signs in to Microsoft Entra ID, the authentication request is forwarded to an on-premises PTA agent, which validates the credentials against the local domain controller. This meets the requirement of using existing on-premises credentials without storing password hashes in the cloud.
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 24, 2026
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