How to Fix DeletingLicensedGroupNotAllowed Errors in Entra Sync

If you manage a hybrid Microsoft Entra ID (formerly Azure AD) environment, you know that Azure AD Connect is usually a “set it and forget it” tool. But occasionally, you might check your sync logs and find a stubborn export error: DeletingLicensedGroupNotAllowed.

In this quick guide, we’ll look at why this error happens and how you can easily resolve it.

Understanding the Error

When you delete a synchronized security or Microsoft 365 group from your on-premises Active Directory, Azure AD Connect naturally tries to delete it from Entra ID as well. However, if that group is currently being used for group-based licensing, Entra ID will block the deletion to prevent accidental license removal for your users.

When this happens, the Azure AD Connect sync cycle throws the DeletingLicensedGroupNotAllowed error.

What You Need Before We Start

To fix this, you’ll need a few things ready:

• Access to your Azure AD Connect server.
• Global Administrator or Directory Writer permissions in Entra ID.
• The Microsoft Graph PowerShell module installed. (If you don’t have it, run Install-Module Microsoft.Graph -Scope AllUsers).

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Step-by-Step Fix

Step 1: Find the Problematic Group’s Object ID

First, we need to identify exactly which group is causing the hiccup.

1. Hop onto your Azure AD Connect server and open the Synchronization Service Manager (C:\Program Files\Microsoft Azure AD Sync\UIShell\miisclient.exe).
2. Navigate to the Connectors tab.
3. Select your on-premises Active Directory Connector.
4. Go to the Export (or Export Errors) section.
5. Look for the DeletingLicensedGroupNotAllowed error. Double-click it to open the Error Details.
6. Copy the Cloud Anchor or Object ID. We will need this to find the group in the cloud.

Step 2: Locate the Group in Entra ID

Now let’s head over to PowerShell to see what this group is. Connect to Microsoft Graph with the necessary permissions:

Connect-MgGraph -Scopes "Group.Read.All"

Once connected, run the following command, replacing OBJECT-ID with the ID you copied in the previous step:

Get-MgGroup -GroupId "OBJECT-ID" | Select-Object DisplayName, Id, Mail, MailEnabled, SecurityEnabled

This will give you the display name of the group so you know exactly what you are dealing with.

Step 3: Remove the Licenses and Re-Sync

Before proceeding, double-check with your team to ensure this group was intentionally deleted from on-premises and isn’t needed anymore.

Once confirmed:

1. Log in to the Microsoft Entra Admin Center or Azure Portal.
2. Find the group and navigate to its Licenses blade.
3. Remove all assigned licenses from the group.
4. Go back to your Azure AD Connect server (or open an elevated PowerShell prompt) and force a Delta Sync:

Start-ADSyncSyncCycle -PolicyType Delta

Check the Synchronization Service Manager one last time. The export error should be gone, and the group will finally be deleted from Entra ID!

Note: If the error still persists after removing the licenses, a delta sync might not be enough. Try running an initial (full) sync instead: Start-ADSyncSyncCycle -PolicyType Initial.

Wrapping Up

Group-based licensing is a fantastic feature, but its built-in safety mechanisms can sometimes cause sync friction. By removing the licenses first, you clear the path for Azure AD Connect to do its job.

Happy syncing!