Hi @Paul Wittle ,
Thank you for your inquiry. Here’s an overview of our current capabilities and the recommended approach:
Current Limitation At present, Microsoft Entra External ID does not support using other Entra tenants as identity providers. Issuer URIs from the microsoftonline.com domain are not accepted, which means direct federation between two Entra tenants via External ID isn’t available.
Recommended Solution:
Custom Sign-In Page: By offering options such as “Sign in with work account” or “Sign in as a guest,” you can help guide users in choosing the correct authentication method if HRD alone does not clarify the choice.
OpenID Connect (OIDC) for Customer Sign-In: If you are evaluating external identities (such as Google or Facebook), please note that these providers require users to already have an account with them. In an OIDC federation scenario, Microsoft Entra External ID (similarly to Azure AD B2C) acts as the service provider that delegates authentication to the third-party IdP. However, this setup only supports external users—not workforce accounts. For more details on how to set up OIDC as an external identity provider, please refer to:
https://learn.microsoft.com/en-us/entra/external-id/customers/how-to-custom-oidc-federation-customers
Regarding External Identity Providers (e.g., Google or Facebook) According to this document https://learn.microsoft.com/en-us/entra/external-id/customers/how-to-custom-oidc-federation-customers#configure-a-new-openid-connect-identity-provider-in-the-admin-center, it is by design that if you try to use a third-party IdP such as Google—even for users who aren’t Google account holders—they won’t be able to authenticate unless they already have an account with that provider. The IdP is solely responsible for verifying the user’s identity. In a typical federation scenario, Azure AD B2C (or External ID functioning in that role) acts as the service provider by delegating the authentication process to the third-party IdP. Note, however, that OIDC federation as described in our documentation only supports external users and does not extend to workforce tenant accounts. For further details on Microsoft Accounts federation, please refer to this reference https://learn.microsoft.com/en-us/entra/external-id/customers/how-to-microsoft-accounts-federation-customers.
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Best regards,
Eric