How to change subdomain authentication type in Microsoft Entra ID (formerly Azure Active Directory)

Once a root domain is added to your Microsoft Entra ID, any subsequent subdomains added within your Microsoft Entra organization will automatically adopt the authentication settings inherited from the root domain. But now, you can manage the authentication settings independently from the root domain settings using Microsoft Graph API.

As subdomains inherently adopt the authentication type of the root domain, it is necessary to elevate the subdomain to the status of a root domain within Microsoft Entra ID through the Microsoft Graph. This enables you to customize the authentication type according to your preferences.

To add a subdomain:

1. Add a new subdomain, which has its root domain's default authentication type, using PowerShell.

       Connect-MgGraph -Scopes "Domain.ReadWrite.All"
       $param = @{
       id="test.contoso.com"
       AuthenticationType="Federated"  
       }
       New-MgDomain -Name "child.mydomain.com" -Authentication Federated

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2. Use the provided example to retrieve the domain via GET request. Since the domain is not designated as a root domain, it automatically inherits the authentication type set for the root domain.

           GET https://graph.microsoft.com/v1.0/domains/foo.contoso.com/
           Return:
           {
               "authenticationType": "Federated",
               "availabilityStatus": null,
               "isAdminManaged": true,
               "isDefault": false,
               "isDefaultForCloudRedirections": false,
               "isInitial": false,
               "isRoot": false,          <---------------- Not a root domain, so it inherits parent domain's authentication type (federated)
               "isVerified": true,
               "name": "child.mydomain.com",
               "supportedServices": [],
               "forceDeleteState": null,
               "state": null,
               "passwordValidityPeriodInDays": null,
               "passwordNotificationWindowInDays": null
           },

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To change the subdomain to a root domain:

        POST https://graph.microsoft.com/v1.0/{tenant-id}/domains/foo.contoso.com/promote

To change the subdomain authentication type to managed:

1. Use this command to change the subdomain authentication type:

           Update-MgDomain -DomainId "test.contoso.com" -BodyParameter @{AuthenticationType="Managed"}

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2. Confirm through a GET request in the Microsoft Graph API that the authentication type for the subdomain is now under management.

           GET https://graph.microsoft.com/v1.0/domains/foo.contoso.com/
           Return:
             {
                 "authenticationType": "Managed",   <---------- Now this domain is successfully added as Managed
                 and not inheriting Federated status
                 "availabilityStatus": null,
                 "isAdminManaged": true,
                 "isDefault": false,
                 "isDefaultForCloudRedirections": false,
                 "isInitial": false,
                 "isRoot": true,   <------------------------------ Also a root domain, so not inheriting from parent domain any longer
                 "isVerified": true,
                 "name": "child.mydomain.com",
                 "supportedServices": [
                     "Email",
                     "OfficeCommunicationsOnline",
                     "Intune"
                 ],
                 "forceDeleteState": null,
                 "state": null,
                 "passwordValidityPeriodInDays": null,
                 "passwordNotificationWindowInDays": null }

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