Password Hash Synchronization (PHS)
π What is Password Hash Synchronization (PHS)?
Password Hash Synchronization is a method used in Azure AD Connect to sync password hashes from your on-premises Active Directory to Azure Active Directory (Microsoft 365 cloud).
π It allows users to use the same password on-prem and in the cloud (single sign-on experience).
π§ How It Works (Simplified):
A user changes or sets their password in on-prem AD.
Azure AD Connect takes a hashed version of the password (already hashed in AD), adds its own extra hash and salt.
This double-hashed password is synced securely to Azure AD.
When a user logs into Microsoft 365, Azure AD uses that hash to verify the password.
⚠️ The actual password is never sent or stored in plain text — it's always in a hashed and salted format.
π¦ Why Use Password Hash Sync?
Benefit | Description |
---|---|
✅ Simple to set up | No need for extra servers like ADFS. |
✅ Same password across systems | Users don’t need to remember two passwords. |
✅ Supports cloud authentication | Azure AD validates the login directly. |
✅ Supports MFA + Conditional Access | Works with modern security controls in Azure. |
✅ Backup login method | If on-prem goes down, users can still authenticate in the cloud. |
π Compared to Other Authentication Methods:
Method | Auth Location | Needs On-Prem Infra | MFA Support | Resilience |
---|---|---|---|---|
Password Hash Sync (PHS) | Cloud (Azure AD) | ❌ No (after sync) | ✅ Yes | ✅ High |
Pass-through Auth (PTA) | On-prem AD | ✅ Yes (agents) | ✅ Yes | ⚠️ Needs uptime |
Federation (ADFS) | On-prem ADFS | ✅ Yes (ADFS servers) | ✅ Yes | ⚠️ Complex |
π Is It Secure?
Yes — Microsoft never syncs the actual password.
It syncs a SHA-256 hashed version of the already-hashed NTLM password, plus adds a salt.
π§ͺ Real-life Use Case:
A company wants users to sign into Microsoft Teams, Outlook, and SharePoint using the same password they use for their company computers — but without maintaining a complex ADFS setup.
✅ Password Hash Sync is perfect.