How to Invite a Guest User to Azure AD for SharePoint Online?

Requirement: Invite guest user to SharePoint Online Azure AD.

How to Invite a guest user to SharePoint Online Azure AD?
SharePoint Online allows us to invite external users to collaborate. However, If the Sharing policy for your SharePoint Online tenant or site is set to "Existing guests - Only guests already in your organization's directory", You must invite the external user to your Azure AD first in order to provide them access. 

sharepoint online external user sharing settings

How to Invite External users to SharePoint Online?

So, Here are the steps to invite an external user to Azure AD:

  • Login to Microsoft Admin Center at https://admin.microsoft.com/, and then open "Azure Active Directory" Admin Center from left navigation.
  • Click on "Users" >> New Guest user. You can also use "Bulk Invite" under "Bulk Activities" to invite multiple external users.
  • Enter the Name of your guest user and fill in the Email and optionally other fields and click on "Invite" button in the bottom of the page.
    Invite guest user to SharePoint Online Azure Active Directory

  • This triggers an invitation Email to the guest user and they've to follow the links to activate their registration with your Azure AD.

Invite Guest User to Azure AD using PowerShell:
To invite guest users to Azure Active Directory, use this PowerShell script.
#Config Variables
$TenantDomain = "crescent.com"
$GuestName= "George"
$GuestEmail = "[email protected]"
$SiteURL = "https://crescent.sharepoint.com/sites/marketing"

#Connect to Azure AD
Connect-AzureAD -TenantDomain $TenantDomain -Credential (Get-Credential)

#Invite Guest User
New-AzureADMSInvitation -InvitedUserDisplayName $GuestName -InvitedUserEmailAddress $GuestEmail -InviteRedirectURL $SiteURL -SendInvitationMessage $True

#Disconnect Azure AD
Disconnect-AzureAD
Once added to Azure AD, you can add the guest user as you add any normal user to SharePoint either through web browser or with PowerShell. How to Add External user to SharePoint Online using PowerShell?

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