Inviting external users fails with error "Your organization does not allow collaboration"

Question

Inviting an external user to your Azure AD tenant fails with the error:
User's properties could not be updated after invitation
Your organization does not allow collaboration with the domain of the user you're inviting. Contact your admin to allow collaboration with this domain.

Answer 1

Hi @Liju Varghese , Please follow this document detailing external collaboration policies. It's followed by this document that explains how to add allowlists. Following these steps will enable collaboration.

Please let me know if you have any questions.

If this answer helped you please mark it as "Verified" so other users can reference it.

Thank you,
James

Answer 2

Under External collaboration settings, Collaboration restrictions was set to Allow invitations only to the specified domains (most restrictive) and the user's home tenant needed to be added to the list.