Microsoft 365 Administration: Major Update to Exchange Online PowerShell – Credential Parameter Removal (Action Required)

Hi All,

Greetings. LIFE IS BEAUTIFUL 🙂

Today, I’m sharing a major recent update related to the Exchange Online PowerShell cmdlets Connect-ExchangeOnline and Connect-IPPSession

MAJOR UPDATE: Credential parameter will be removed from Connect-ExchangeOnline and Connect-IppsSession cmdlets

Details

• Microsoft is retiring the -Credential parameter used when connecting to Exchange Online PowerShell
• Starting with module versions released in July 2026 and later, the -Credential parameter will be removed from the Connect-ExchangeOnline cmdlets. It will also be removed from the Connect-IppsSession cmdlets
• Organizations using this parameter in automation scripts must migrate to a supported authentication method before that date
• This change improves security by moving away from legacy authentication methods that do not support modern protections such as multifactor authentication (MFA)
• If our organization uses the -Credential parameter in PowerShell scripts or automation workflows connecting to Exchange Online or Security & Compliance PowerShell, those scripts will break when we update to an Exchange Online PowerShell module version released beginning July 2026

Action Required

• If you are using the –Credential parameter, start migrating scripts now.
• Find an alternative approach
  • Interactive admin access: Switch to modern authentication with MFA
  • Automation outside Azure: Use app-only authentication (certificate-based or client secret)
  • Automation within Azure: Use managed identity authentication (no secrets required)

Important Points to consider:

• This change will not take effect automatically
• Our existing scripts will continue to function
• This is possible if we keep using an Exchange Online PowerShell module version released before July 2026
• The –Credential parameter will only be removed when we upgrade to a module version released in July 2026 and later
• Microsoft strongly recommend migrating proactively rather than waiting, to avoid disruption when either change occurs

REFERENCES

• Essential Exchange Online Interview Preparation Guide – https://knowledge-junction.in/2025/08/23/essential-exchange-online-interview-guide/
• https://learn.microsoft.com/powershell/module/exchangepowershell/connect-exchangeonline?view=exchange-ps
• https://learn.microsoft.com/powershell/module/exchangepowershell/connect-ippssession?view=exchange-ps

Thank you for reading. Feel free to discuss about Microsoft 365, PowerShell, Microsoft Graph, Power Automate, CyberSecurity