Clarification on Licensing Requirement for Conditional Access Policies

Question

Hello,

We are evaluating Conditional Access policies for securing access to Microsoft Teams and Outlook—particularly restricting access from personal (unmanaged) devices.

I would like to confirm the licensing requirements:

Can Conditional Access policies be applied to users with Microsoft Entra ID Free (formerly Azure AD Free)?

Or is it mandatory to assign Entra ID P1 or higher licenses to each user targeted by Conditional Access?

We are working within strict budget constraints and are hoping for a solution that does not require purchasing additional licenses, if possible.

Kindly confirm the requirements and share any relevant official documentation for our internal reference.

Thanks in advance for your support.

Answer 1

Hello @Rajeev Singh ,

I Understand you want clarification on Licensing Requirement for Conditional Access Policies for securing access to Microsoft Teams and Outlook—particularly restricting access from personal (unmanaged) devices. You would like to confirm the licensing requirements.

To clarify the licensing requirements for applying Conditional Access policies, users targeted by Conditional Access policies must have Microsoft Entra ID (P1) licenses or higher. Microsoft Entra ID Free does not include the necessary features to support Conditional Access policies. It is mandatory to assign Microsoft Entra ID (P1) or higher licenses to users in order to apply Conditional Access policies effectively. Unfortunately, users with Microsoft Entra ID Free licenses will not be able to benefit from Conditional Access policies.

For additional information you can follow: Microsoft-Entra-Conditional-Access Licensing Requirements , What is Conditional Access
Hope this information helps. Let us know if you have any additional queries. Happy to assist you further.