What is Password hash Synchronization in Azure AD | Explained clearly

Password hash synchronization is one of the sign-in methods used to accomplish hybrid identity.

Password hash synchronization is an extension to the directory synchronization feature implemented by Azure AD Connect sync.

Azure AD Connect synchronizes a hash of a user's password from an on-premises Active Directory instance to a cloud-based Azure AD instance.
You can use this feature to sign in to Azure AD services like Microsoft 365. You sign in to the service by using the same password you use to sign in to your on-premises Active Directory instance.

Password hash synchronization helps by reducing the number of passwords, your users need to maintain to just one. Password hash synchronization can:

Improve the productivity of your users.
Reduce helpdesk costs.

To use password hash synchronization in your environment, you need to:
Install Azure AD Connect.
Configure directory synchronization between on-premises Active Directory instance and Azure Active Directory instance.
Enable password hash synchronization.

How password hash synchronization works.
Active Directory domain service stores passwords in the form of a hash value representation, of the actual user password.

When you change an on-premises password, the updated password is synchronized, most often in a matter of minutes. The password hash synchronization feature automatically retries failed synchronization attempts. If an error occurs during an attempt to synchronize a password, an error is logged in your event viewer.

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