Convert Entra Synced Users to Cloud only Users

1. We will need an active directory OU which is not getting synced with Entra ID. If you already have one, you can use it. If not, then you can create an OU and then exclude it from synchronization.

• Launch Entra Connect > Customize synchronization options > In Domain and OU Filtering Page > Select Sync Selected domains and OUs to exclude an active directory OU from sync.

2. Move the user account (that you want to convert to cloud only) to this OU.
3. Run Entra ID delta Sync.

     Run delta sync
     Start-ADSyncSyncCycle -PolicyType delta
     

4. After delta sync is completed, link between the user and Entra ID will break and it will be moved to Deleted users on Microsoft 365 admin center (refer to the below screenshot)

    Note: There is no data loss when a user account is moved to Deleted Users. Microsoft keeps deleted user account for 30 days before permanent deletion.    
    

5. Select the User account from Deleted users page and click on Restore User. You will have to reset user’s password to restore the user.
6.Once user account has been restored, it will now show in Users > Active Users on Microsoft 365 admin center.
Notice the Icon for the Sync Status column will be changed to cloud symbol which means that the user account is now a cloud only account.