I use multi factor authentication and hence this is little difficult than using plain old password. The following configuration is the recommended method across almost all articles in the Internet, but still the password will fail. There is a solution which I came across in the forums, which worked for me and I’m documenting it here.

IMAP configuration

Incoming server configuration

• outlook.office365.com
• SSL/TLS
• Port 993
• OAuth2
• Full email address as username

SMTP server configuration

• smtp.office365.com
• STARTTLS
• Port 587
• Full email address as username

User configuration at Microsoft Admin Center

• Go to tenant admin center. The URL at the time of writing this article is https://admin.microsoft.com.
• Go to Users > Active users.
• Click/press on the user who has get the incorrect password error.
• In the properties panel, click/press the “Mail” tab.
• Under the “Email apps” section, click the link “Manage email apps”.
• Look at the check box “Authenticated SMTP”.
• Check it if not already checked. If already checked, un check it, press save changes, follow the above steps and check it again.
• Finally save the changes.
• Wait for some 5 to 15 minutes.

Now try adding the account in Thunderbird and most probably this should resolve the issue.

For me the app password didn’t work but the above with OAuth worked!

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