Let’s take a look at the typical scenario where you encounter this issue. When you try to create an Outlook profile or connect to a Microsoft Office 365 mailbox, you’re continually prompted for credentials while the client displays a trying to connect… message. If you cancel the credentials prompt, you receive the following error message: In this instance, this issue can occur if the Logon network security setting on the Security tab of the Microsoft Exchange dialog box is set to a value other than Anonymous Authentication.

Outlook keeps asking for password when connecting to Office 365

If you’re faced with this issue, you can follow the instructions below to resolve the issue. Note: Outlook 2016 and some recent builds of Outlook 2013 are not affected by this issue. Those versions have been updated to prevent the problem that has been described above. These versions have the Logon network security setting disabled or removed from the Microsoft Exchange email account settings. However, if you’re an Office 365 user who is experiencing this issue when you try to connect to an Exchange Online mailbox or you may also already be running newer versions of Outlook 2013 or Outlook 2016, you can run these diagnostics from Microsoft to troubleshoot issues in which Outlook continually prompts for a password. If you have an older version of Outlook, you need to change the Logon network security setting to Anonymous Authentication to fix this issue.

Do the following: That’s it! Related read: Outlook cannot connect to Gmail, keeps asking for a password.