MC1243549 (Updated) Retirement of SharePoint One-Time Passcode (SPO OTP) and transition to Microsoft Entra B2B
Updated July 17, 2026: Phase 1, which enables Entra B2B for new external sharing, is now fully rolled out for Production environments. To ensure a smooth transition, Phase 2, the retirement of SharePoint Online OTP, has been rescheduled to begin on October 1 and is expected to complete by October 31 for Production environments.Both Phase 1 and Phase 2 roll outs exclude GCC, GCCH & DoD. New dates for these environments will be communicated via Message center when we are ready to proceed. Thank you for your patience.[Introduction]We are retiring SharePoint One‑Time Passcode (SPO OTP) authentication in OneDrive and SharePoint starting October 2026. Beginning in May 2026, new external sharing invitations and authentication will start using Microsoft Entra B2B instead of SPO OTP. This transition simplifies external collaboration, aligns authentication with Microsoft identity standards, and en