OneDrive Sign-in Loop Appears After Password Change: OneDrive for Business Fix

After you change your Microsoft 365 password, OneDrive for Business may repeatedly ask you to sign in. The sign-in window appears, closes, and then appears again. This loop prevents OneDrive from syncing any files. The problem occurs because OneDrive still holds your old cached credentials in the Windows Credential Manager. This article explains how to clear those credentials, reset the OneDrive sync connection, and restore normal syncing without losing your local files.

Why a Password Change Triggers a OneDrive Sign-in Loop

When you change your Microsoft 365 password, the authentication token that OneDrive stored locally becomes invalid. OneDrive tries to use this old token to connect to the cloud service. The server rejects the token and sends a sign-in challenge. OneDrive opens the sign-in window, the new password is not automatically passed through because the cached token is still present, and the process repeats. This cycle continues until the cached credential is removed.

The credential is stored in the Windows Credential Manager under a specific entry named MicrosoftOffice16_Data:ADAL:<GUID>. This entry contains the previous authentication token. As long as this entry exists, OneDrive will use it instead of prompting you to enter the new password properly.

Another factor is the OneDrive sync engine itself. If the engine is in a stuck state, it may not respond to the credential update request. A reset of the sync engine clears this state.

Steps to Fix the OneDrive Sign-in Loop After a Password Change

Follow these steps in order. Do not skip any step. Each step addresses a different part of the problem.

1. Close OneDrive completely
   Right-click the OneDrive cloud icon in the system tray near the clock. Select Settings. In the Microsoft OneDrive window, select the Account tab. Click Unlink this PC. Confirm when prompted. This stops the sync engine and prepares it for a clean reconnection.
2. Open Windows Credential Manager
   Press the Windows key and type Credential Manager. Select the result. In the Credential Manager window, click Windows Credentials.
3. Locate and remove the OneDrive credential entry
   Scroll down to the Generic credentials section. Look for an entry that begins with MicrosoftOffice16_Data:ADAL:. There may be multiple entries with similar names. Select each one and click Remove. Confirm the removal. This deletes the cached authentication token that is causing the loop.
4. Restart OneDrive
   Press the Windows key, type OneDrive, and press Enter. OneDrive will start and show the sign-in window. Enter your full email address and click Sign in. Enter your new password. OneDrive should now connect without looping.
5. If the loop persists, reset the OneDrive sync engine
   Press Windows key + R to open the Run dialog. Type %localappdata%\Microsoft\OneDrive\onedrive.exe /reset and press Enter. A command window will open briefly. Wait two minutes. Press the Windows key, type OneDrive, and press Enter to restart OneDrive. Sign in again.

If OneDrive Still Shows the Sign-in Loop After the Main Fix

OneDrive sign-in loop continues after credential removal

If the loop continues, the issue may be caused by a corrupt OneDrive cache folder. Close OneDrive using the method in step 1. Press Windows key + R, type %localappdata%\Microsoft\OneDrive, and press Enter. Delete the contents of the cache folder if it exists. Do not delete the folder itself. Restart OneDrive and sign in.

OneDrive sign-in loop appears on a shared or domain-joined computer

On a domain-joined computer, the credential may be stored in the Windows Credentials section under a name that does not start with MicrosoftOffice16_Data. Look for entries containing OneDrive or MicrosoftOffice and remove them. If the computer is shared, ensure the user profile is not corrupted. Create a new Windows user profile and test OneDrive there.

OneDrive sign-in loop appears every time the computer restarts

This indicates that OneDrive is starting automatically before the network is ready. Open OneDrive settings by right-clicking the cloud icon and selecting Settings. Go to the Account tab. Under Choose folders, ensure you are not syncing a large number of folders. On the Settings tab, uncheck Start OneDrive automatically when I sign in to Windows. Restart the computer and start OneDrive manually after the network is fully connected.

Windows Credential Removal vs OneDrive Unlink: Key Differences

Item	Remove Credential from Credential Manager	Unlink PC from OneDrive Settings
What it does	Deletes the cached authentication token	Removes the sync partnership between the PC and the OneDrive cloud
Effect on local files	None — files remain in the OneDrive folder	None — files remain in the OneDrive folder but syncing stops
Effect on sync state	OneDrive will prompt for credentials again	OneDrive will require a full reconnection and folder selection
When to use	First fix for sign-in loop after password change	If credential removal alone does not stop the loop
Time to complete	2 minutes	5 minutes

After you remove the cached credential and unlink the PC, OneDrive will start fresh. Your local files stay in the OneDrive folder. You will need to select which folders to sync again. This is a small trade-off for a clean connection that does not loop.

To verify the fix worked, right-click the OneDrive cloud icon and select View sync issues. There should be no errors. Next, open File Explorer and confirm that files in the OneDrive folder show green check marks. If you manage multiple Microsoft 365 accounts, consider using the Add an account option in OneDrive settings to keep personal and work files separate. An advanced tip: if you use a VPN, disconnect it before signing in to OneDrive for the first time after a password change. Some VPNs interfere with the authentication handshake and can cause the loop to return.