EntraID custom domain name verification versus GoDady

Question

EntraID custom domain name verification versus GoDady

Quinn, Michael 0

Hello ... I've set up a home lab with Azure trial subscription and a Windows 2022 server. I bought a GoDaddy domain 'acme.org'. Registered 'acme.org' successfully in my Entra trial Default Directory, as a custom Domain, by adding the Entra supplied TXT record to GoDaddy DNS and verifying in Entra. Worked great, I could use Azure connect running on my OnPrem Windows 2022 Domain Controller 'acme.org' to sync users from winAD on prem to Azure Default Directory. Then I had a bright idea and bought a GoDaddy mail box (MS365) for one of my winAD users '******@acme.org'. GoDaddy wouldn't let me create the mailbox until I deleted the 'acme.org' custom domain from Entra. I then thought I'd re-add 'acme.org' as a custom domain in Entra. However, issue is that it won't now Verify in Entra even though I've added the new TXT record in GoDaddy DNS. Hope this makes sense. Any help appreciated.

Monalisha Jena 0 Reputation points Microsoft External Staff Moderator

2025-08-11T16:59:40.5333333+00:00
Hello Quinn, Michael,

Welcome to Microsoft Q&A Platform. Thank you for reaching out & hope you are doing well.

This issue is caused by domain ownership and federation conflicts between, the Entra ID tenant you created, and a Microsoft 365 tenant provisioned and managed via GoDaddy on your behalf.

To regain control and re-verify the domain in Entra, you have below possible paths:

Remove Domain from the GoDaddy Microsoft 365 Tenant

This is the cleanest method if you want to fully control acme.org in your Entra lab tenant.

Steps:

Log into your GoDaddy account.

Access your Microsoft 365 tenant via GoDaddy: https://account.microsoft.com/services or https://portal.office.com

Go to the Microsoft 365 Admin center: https://admin.microsoft.com

Under Settings → Domains, find and remove the domain acme.org from the GoDaddy-managed tenant.

Wait 15–30 minutes for DNS and backend propagation.

Return to Entra Admin Center: https://entra.microsoft.com → Custom domains → Add custom domain → Try verification again.

Make sure no users, email addresses, or services are still associated with the domain in the GoDaddy Microsoft 365 tenant before removing it.

You can follow below document for reference:

Remove a domain from Microsoft 365: https://learn.microsoft.com/en-us/microsoft-365/admin/get-help-with-domains/remove-a-domain?view=o365-worldwide

Use a Different Domain in Entra

If the above is too complex or blocked by GoDaddy support:

You can create a subdomain for your lab (e.g., lab.acme.org) in your GoDaddy DNS.

Add lab.acme.org as a custom domain in Entra instead of acme.org.

This avoids the tenant conflict with GoDaddy.

You can follow the below reference:

Add a subdomain to Entra ID: https://learn.microsoft.com/en-us/entra/fundamentals/add-custom-domain

If the domain is still locked in another tenant, you must raise a support ticket to the Data Protection team to request domain release.

To proceed, I will need a few details from you. As this information contains Personally Identifiable Information (PII), please share the following details via private message:

Tenant ID or Domain name

Subscription ID

Contact phone number (add +Country code)

Contact email address

Global admin email address (affected account)

Country

TimeZone

Hope this helps to resolve your issue.

Regards,

Monalisha
Monalisha Jena 0 Reputation points Microsoft External Staff Moderator

2025-08-12T12:43:29.3233333+00:00

Just following up to check if you find the solution helpful, if not if you had a chance to gather and share the requested details to provide so we can proceed with raising the support request to help you.

1 answer

Your answer

Monalisha Jena 0 Reputation points Microsoft External Staff Moderator

2025-08-12T12:43:29.3233333+00:00

Just following up to check if you find the solution helpful, if not if you had a chance to gather and share the requested details to provide so we can proceed with raising the support request to help you.

Answer 1

When you deleted ''acme.org'' from Microsoft Entra ID to set up the GoDaddy Microsoft 365 mailbox, GoDaddy may have taken over DNS management for that domain. That means:

The TXT record you added in GoDaddy might not be active anymore.
Microsoft Entra can't verify the domain because it doesn't see the TXT record it needs.

Log in to GoDaddy, go to Domain, select DNS Management.

Determine whether you are using GoDaddy's default nameserver or have switched to Microsoft 365 (Office 365) DNS?

If you have purchased a Microsoft 365 mailbox, GoDaddy may automatically switch the nameserver to *.onmicrosoft.com or the host record provided by MS365.
This means that any TXT changes you add in the old DNS table will no longer be "broadcast," as you are editing in a location that is not the active nameserver.

Solution:

Check the Nameserver section – if it is not nsXX.domaincontrol.com, you need to go to the management page of Microsoft 365 (or GoDaddy Premium DNS) to add the record.

Alternatively, revert the nameserver back to the default GoDaddy (nsXX.domaincontrol.com), then add the TXT record and wait for propagation.

Add the TXT Record in the right place

Log in to the Microsoft 365 Admin Center (via GoDaddy).
Go to Settings → Domains → acme.org → DNS records.
Add the TXT record that Entra ID gave you

Wait for DNS Propagation

It can take up to 24 hours, but usually 15–60 minutes.
Use https://www.whatsmydns.net to check if the TXT record is visible globally.

Retry Verification in Entra

Go back to Microsoft Entra Admin Center → Identity → Settings → Domain Names.
Click Verify next to acme.org.

Pro Tips

Avoid deleting domains from Entra unless absolutely necessary. It can cause sync and identity issues.
If you’re syncing users from on-prem AD, make sure the domain is verified before assigning UPNs like ******@acme.org.

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EntraID custom domain name verification versus GoDady

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