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How to Set Up Email on a Custom Domain in Microsoft 365
Estimated Time to Fix: 20 minutesApplies to: Microsoft 365 Business
Article Type: How-To
Last Updated: 2026-07-21
Summary
Using a custom domain (like [email protected]) looks much more professional than a generic @outlook.com or @gmail.com address. This guide walks you through connecting a domain you own to your Microsoft 365 account so you can start sending and receiving business email.
If you are setting the whole business up from scratch, this is one stage of a longer job — How to Set Up Microsoft 365 for a Small Business covers the plan choice, users, MFA, and shared files that surround it.
Prerequisites
- You must have a Microsoft 365 Business Basic, Standard, or Premium subscription.
- You must have Global Admin rights in your Microsoft 365 tenant.
- You must have the login credentials for the company where you bought your domain (e.g., GoDaddy, Namecheap, Cloudflare).
Instructions
1. Add the domain in Microsoft 365
First, you need to tell Microsoft which domain you want to use.
- Sign in to the Microsoft 365 Admin Center.
- On the left navigation menu, click Settings > Domains.
- Click Add domain.
- Type your domain name (e.g.,
yourbusiness.com) and click Use this domain.
2. Verify you own the domain
Microsoft needs to prove you actually own the domain before they let you send email from it. They do this by asking you to add a temporary text record to your domain.
- In the Microsoft 365 setup wizard, select Add a TXT record to the domain's DNS records and click Continue.
- Microsoft will provide a TXT Name (usually
@), a TXT Value (starts withMS=), and a TTL (usually3600). - Open a new browser tab, log in to your domain registrar (where you bought the domain), and find the DNS settings or DNS management page.
- Create a new DNS record with the exact details Microsoft provided.
- Go back to Microsoft 365 and click Verify. (Note: DNS changes can sometimes take 10-15 minutes to register. If it fails, wait a few minutes and try again).
3. Update your email DNS records
Once verified, you need to tell the internet to route emails for your domain to Microsoft's servers.
- Microsoft will ask how you want to connect your domain. Select Add your own DNS records and click Continue.
- Microsoft will show you three types of records you need to add to your registrar:
- MX Record: This routes incoming mail to Microsoft.
- CNAME Record: This allows Outlook to automatically discover your account settings.
- TXT Record (SPF): This proves your emails are legitimate and stops them from going to people's spam folders.
- Switch back to your domain registrar's DNS page and add these three records exactly as Microsoft displays them.
- Return to Microsoft 365 and click Continue. Microsoft will check the records.
- Once successful, click Done.
4. Assign the new address to your user
Your domain is connected, but you need to update your actual email address to use it.
- In the Microsoft 365 Admin Center, go to Users > Active users.
- Click your name.
- In the flyout panel, under the Account tab, click Manage username and email.
- In the Primary email address and username section, click the pencil icon to edit.
- Change the dropdown domain from
yourcompany.onmicrosoft.comto your new custom domain, and click Save changes.
Troubleshooting
WARNING
Changing your primary email address means you will use the new address to sign in to all Microsoft 365 services (including Teams and OneDrive). You will be temporarily signed out of your apps until you sign back in with the new username.
| Symptom / Error | Potential Cause | Solution |
|---|---|---|
| Microsoft says verification failed | DNS propagation delay | Wait 15 minutes and click Verify again. DNS changes aren't instant. |
| Emails are going to recipients' spam folders | Missing or incorrect SPF record | Double-check the TXT (SPF) record in your registrar. It must exactly match the value Microsoft provided (v=spf1 include:spf.protection.outlook.com -all). |
| I can send email but not receive it | Incorrect MX record | Verify your MX record points to yourdomain-com.mail.protection.outlook.com and has a priority of 0. |