Hello @Eddie Vincent,
Thank you for reaching out to Microsoft Q&A.
We understand that you are trying to use Entra Domain Services for moving some of your applications from on premises to the cloud. As a part of the transition, you would like to implement Azure DNS resolver for the network for both cloud and on premises.
You can have the combination of Entra Domain Services and Azure DNS if it is configured carefully as there are some restrictions to Azure DNS Private Resolver. Whenever you are using Entra Domain Services, it provides its own DNS service, and the virtual network must rely on that DNS. However, this environment can be handled effectively by using DNS Forwarders and Conditional Forwarders. If there are additional namespaces that need to be resolved, you can configure conditional DNS forwarding. The on-premises DNS should be configured to forward queries for the Azure AD DS domain to the Azure AD DS DNS service.
By using conditional forwarding between the on-premises DNS and Azure AD DS DNS, along with DNS servers configured in your VNet, you can achieve seamless hybrid DNS resolution while ensuring that resources in both domains can communicate with each other.
Sharing relevant document for more information: https://learn.microsoft.com/en-us/azure/dns/dns-private-resolver-overview
I hope this explanation helps to clarify the situation. If you have any further questions or need assistance with any other issues, feel free to reach out.
Thanks & Best Regards,
Janaki Kota
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