OneDrive for Business 0x8004de40 sign-in error troubleshooting for managed devices: appears after password reset

You recently reset your Microsoft 365 password and now OneDrive for Business shows a sign-in error with code 0x8004de40. The error prevents you from accessing your cloud files through the OneDrive sync client. This error occurs because the cached credentials stored by Windows Credential Manager no longer match your new password. This article explains why the 0x8004de40 error appears specifically after a password reset and provides step-by-step methods to clear the stale credentials and restore OneDrive sync on your managed device.

Why Error 0x8004de40 Appears After a Password Reset

The OneDrive sync client stores your sign-in tokens and password hash in Windows Credential Manager. When you reset your Microsoft 365 password, the stored credentials become invalid. The client attempts to use the old credentials, fails authentication, and returns error 0x8004de40. This error code indicates a credential mismatch or an expired token that the client cannot refresh automatically.

On managed devices, group policies or Conditional Access policies may enforce device compliance checks. After a password reset, the cached device token may also become stale. The sync client then shows the sign-in error instead of prompting for new credentials. Clearing the cached credentials and unlinking the device resolves the mismatch.

Steps to Clear Cached Credentials and Fix the Error

1. Close OneDrive completely
   Right-click the OneDrive cloud icon in the system tray. Select Settings. Click the Account tab, then click Unlink this PC. Confirm the unlink. This stops the sync client and removes the local credential reference.
2. Open Windows Credential Manager
   Press the Windows key and type Credential Manager. Click the result. Select Windows Credentials under the Credential Manager window.
3. Remove all OneDrive and Office credentials
   Scroll through the Generic Credentials list. Look for entries named MicrosoftOffice16_Data:ADAL:… or OneDrive Cached Credential. Also remove any entry containing Microsoft.AAD.BrokerPlugin. Click each entry and select Remove. Confirm each removal.
4. Restart the OneDrive sync client
   Press the Windows key, type OneDrive, and press Enter. The setup window appears. Sign in with your new Microsoft 365 password. OneDrive re-establishes the credential cache with the updated password.
5. Verify sync status
   Check the system tray icon. It should show a solid blue cloud or a green check mark. Open File Explorer and navigate to your OneDrive folder. Confirm that files sync without errors.

Alternative Method: Reset OneDrive Using Command Line

1. Run the OneDrive reset command
   Press Windows key + R, type %localappdata%\Microsoft\OneDrive\onedrive.exe /reset, and press Enter. Wait 30 seconds for OneDrive to restart automatically. If it does not restart, launch OneDrive manually from the Start menu.
2. Sign in again
   After the reset, OneDrive prompts you to sign in. Enter your new password. The reset clears all cached credentials and registry settings, which resolves the 0x8004de40 error.

If OneDrive Still Shows Error 0x8004de40 After Clearing Credentials

OneDrive prompts for credentials but fails again

This indicates that the cached credentials were not fully removed. Open Credential Manager again and remove any entries that reappeared. Also check for credentials under Web Credentials. Remove any entry for login.microsoftonline.com or onedrive.live.com. Then restart OneDrive.

Group policy prevents credential removal

On a managed device, your IT administrator may have deployed a policy that prevents modifying credentials. Contact your help desk and ask them to clear the cached credentials remotely or to provide an exception for your device. As a workaround, you can use OneDrive for the web at https://onedrive.live.com until the policy is adjusted.

Conditional Access blocks the sign-in

If your organization uses Conditional Access policies that require device compliance or multifactor authentication, the password reset may invalidate the device token. Sign out of all Microsoft 365 apps, clear the browser cache, and sign in again at https://portal.office.com. Then restart OneDrive and sign in with your new password. If the error persists, verify that your device is compliant in the Microsoft Intune or Microsoft Entra admin center.

OneDrive sync client version is outdated

An old sync client may not handle token refresh correctly after a password reset. Download the latest OneDrive sync client from https://www.microsoft.com/en-us/microsoft-365/onedrive/download. Install it over the existing version. The update includes fixes for credential handling and modern authentication.

Item	Credential Manager Clear	OneDrive Unlink and Relink
Scope	Removes all cached credentials for OneDrive and Office	Removes the device association with the tenant
Data loss risk	None	None — local files remain untouched
Time required	2 minutes	5 minutes including sign-in
Admin rights needed	No	No
Effect on other Microsoft 365 apps	May require re-sign-in for Outlook, Teams	OneDrive only

The error code 0x8004de40 is a credential mismatch after a password reset. The two methods above both resolve the issue. Use Credential Manager removal if you want to avoid unlinking OneDrive. Use the unlink method if you prefer a clean device reconnection.

You can now fix the 0x8004de40 error by clearing stale credentials and relinking OneDrive. After completing the steps, test sync by creating a new file in your OneDrive folder. For future password resets, sign out of OneDrive before changing your password to avoid the error altogether. If you manage multiple devices, consider using the OneDrive reset command as a faster alternative for each machine.