Outlook keeps asking for a password and will not accept it
A cached credential or token has gone stale, and Outlook is looping between a prompt it cannot satisfy and a server that keeps refusing it.
What you see
The credential prompt returns immediately after a correct password is entered, or the status bar reads "Need Password" and clicking it does nothing. Frequently starts after a password change or an MFA enrolment.
What is actually wrong
Three separate credential stores are involved: Windows Credential Manager, the Office identity cache, and the Web Account Manager token. A stale entry in any one of them wins over what is typed at the prompt.
Codes and articles
Fixes (3)
Clear the stored credentials in the right order
Always start here. Clearing one store and not the others is why this fault appears to come back.
Close Outlook and Teams completely — check Task Manager, because both leave background processes that hold the tokens.
Get-Process OUTLOOK,ms-teams,Teams -ErrorAction SilentlyContinue | Stop-Process -ForceList the Office-related credentials before removing them.
cmdkey /list | Select-String -Pattern 'MicrosoftOffice|MS.Outlook|SSO_POP|OneDrive'Remove the Office entries.
cmdkey /list | ForEach-Object { if ($_ -match 'Target:\s*(MicrosoftOffice\S+|MS\.Outlook\S+|SSO_POP\S+)') { cmdkey /delete:$($Matches[1]) }}
These are the entries Outlook consults before it prompts. Leaving one behind means the prompt you fill in is discarded in favour of the stale entry, which is precisely the loop being reported.
Open Outlook. It should prompt once and then stay signed in.
If the prompt returns, sign out of Office entirely from File → Office Account → Sign out, restart, and sign back in.
cmdkey /list | Select-String -Pattern 'MicrosoftOffice'Reset the Office identity cache and the account state
Clearing credentials did not hold, or the machine has been rebuilt or moved between tenants.
Close all Office applications.
Back up the identity keys before removing them.
reg export "HKCU\Software\Microsoft\Office\16.0\Common\Identity" "$env:USERPROFILE\Desktop\identity-backup.reg" /yRemove the cached identities.
Remove-Item 'HKCU:\Software\Microsoft\Office\16.0\Common\Identity' -Recurse -ForceThis is where Office records which account is signed in and which tenant it belongs to. After a tenant migration or a rebuild it can hold an identity that no longer exists, and no prompt will ever satisfy it.
Clear the Web Account Manager cache, which holds the token itself.
Get-ChildItem "$env:LOCALAPPDATA\Packages\Microsoft.AAD.BrokerPlugin_cw5n1h2txyewy\AC\TokenBroker\Accounts" -ErrorAction SilentlyContinue | Remove-Item -Force -RecurseRestart and sign in to Outlook fresh.
Build a fresh mail profile
Neither of the above worked. A damaged profile cannot be repaired reliably and rebuilding is faster than trying.
Note the account details and any PST files in use before starting.
control mlcfg32.cplCreate a new profile rather than modifying the existing one, and set Outlook to prompt for a profile so you can switch back.
Add the account and let autodiscover configure it. Do not use manual settings for a Microsoft 365 mailbox — the manual path skips modern authentication and reintroduces the prompt loop.
Re-attach any PST files by File → Open & Export → Open Outlook Data File.
Local PST archives are not re-added by a new profile, and their absence is the thing most likely to be reported as data loss after this fix. Re-attaching is two clicks if you noted the paths first.
Once the new profile is proven, set it as default and remove the old one.
Related faults
Where this stops. This write-up was written and checked by hand. It says what each step changes, how to confirm it worked and how to reverse it, and anything destructive is flagged before you reach it. If it does not match what your machine is doing, search the Support Centre for the exact code or message — and when something needs a person, get in touch.