How to add a domain name to Microsoft Azure Directory and add users

There are a few ways to provision users in a Microsoft Azure AD directory. The most common is with the use of the Azure AD Connect tool which syncs your on-premises AD directory with Azure AD. The simplest way (and good for Cloud Only scenarios) is to create users directly in Azure AD. If you want to create a user in Azure AD with the UPN of your domain name, you first need to validate the domain name. In this blog I will show you step-by-step how to do this.

To add a new domain name, login the the Azure Classic portal ( and open the Active Directory page.


Click the arrow to the right of the Default Directory


Click on Add domain


Fill in the Domain Name and click Add. If you are planning to enable single sign-on with ADFS for this domain you can select “I plan to configure this domain for single sign-on with my local Active Directory”. For this blog I skip this step.


Create the TXT record for your external domain as displayed in the Verify <domain name> dialog. It may take up to 24 hours before the DNS record is known everywhere so the chances are that verification is not immediately possible. No problem, this can still be done later (see next steps).


To verify the domain name after a few hours select the domain name and click VERIFY at the bottom of the screen.


Click Verify


The domain is now verified. To make the domain the primary domain, click on Change Primary at the bottom of the screen.


Select the new domain as new primary domain and click on the checkmark.


The domain name is now verified and set to primary domain.

Add a new user for the new domain name


Open the USERS tab and click the ADD USER button at the bottom of the screen.


Fill in the USER NAME, in this example Joe. Click the right arrow.


Fill in the FIRST NAME, LAST NAME and DISPLAY NAME. Select a user roll (default is user) and if you want to enable Multi-Factor Authentication you can enable that right away on this page (will be covered in one of my next blogs). Click the right arrow.


A temporary password will be created. Click on Create. (password will be displayed)


The user is now created and can be assigned to resources and Microsoft Online services like Azure RemoteApp or Microsoft Intune.

About Robin Hobo

I am a Technology Specialist working for Microsoft with focus on the Modern Workplace. I am specialized in Microsoft Intune, Azure Virtual Desktop (AVD), Windows 365, Windows 11 and Azure AD. Also interested in mental health, NLP and personal development.

For more information, see the About Me page or my LinkedIn profile.

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