As usual, you can then give it a name and click Finish to save it on your XrmToolBox. Upon Approval, the XrmToolBox will be authenticated and it will be connected to the Dynamics 365 environment.One the device, assuming you have the Authenticator App installed already, you can Approve the same to let the Authentication go through.Once you’ve entered the same, it will send a request to your Authenticator on the registered device.Upon clicking Next, you will be asked the Password of the credentials you are using.Supposedly, this is the one on which MFA is enabled. Now, enter the username which you want to connect with.Once you click OK on the above, the Reply Url will be auto-populated and you can proceed further.At this point, I haven’t tried the other method and stuck to the below since I connect XrmToolBox to the Dynamics 365 environment for development purpose. Before that, you’ll see the message notifying which scenarios this is suitable.
If you click on the “Use development Azure AD App”, the Reply Url will be populated automatically. Now, enter the Application ID which you can copy from the registered App in Azure. Enter the URL of the Organization and click Next as shown below. Now, since you are aware that the environment is MFA enabled, select MFA/OAuth method. Open XrmToolBox and create a New Connection. Let’s see what steps you need to follow in order to connect to the Dynamics 365 instance Now, let’s connect XrmToolBox to the Dynamics 365 environment.Ĭonnecting to Dynamics 365 using the XrmToolBox Once this is the state, you are done on Azure side. Select the same and your permissions should look like below. Make sure Delegated Permissions are selected and tick mark user_impersonation and click on Add permissions. Now, search for the permission “Common Data Service” under the tab APIs for my organization uses. 
Now, navigate to API Permissions from the left side menu. Go to the Manifest file and make “ allowPublicClient” to true and Save it. Once you save it, you’ll get the Application (client) ID which which will be needed by the XrmToolBox while connecting. Go to and look for Azure Active Directory. Below is a summary from the original Microsoft Documentation on the same – Microsoft has provided a recommended way to register an App with Azure Active Directory and also the same has been mentioned in the XrmToolBox Connection utility. Register the Dynamics 365 environment as an App in Azure Here’s one of the common challenges in being able to connect to an MFA enabled Dynamics 365 instance using XrmToolBox. 
For developers, it is especially critical that MFA is enabled that developers are also someone who need to connect the more than ever! It has always been recommended to enable MFA on environments we work on.
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