Restricting Users to Specific App Access & by Location in Microsoft Entra ID

Field

Details

Document Type

Runbook

Applies To

Entra ID, Managed Applications

Audience

Identity Administrators

Author

AK. Udofeh

Last Updated

July 2026

Overview
This configuration restricts a specific user or group to accessing only a defined set of target applications, while simultaneously ensuring those allowed applications can only be accessed from a trusted network location.
It is important because it prevents compromised credentials from being used outside corporate boundaries or on unapproved applications. This mitigates the risk of data exfiltration from unauthorised applications and blocks lateral movement from untrusted geographic locations or IP addresses.

Prerequisites

Step 1: Navigation & Entry Point
  1. Log in to the Microsoft Entra admin center (https://entra.microsoft.com).
  2. Expand the left menu and navigate to Protection > Conditional Access.
  3. Click on Policies > New policy.
Step 2: Scope Configuration (Policy 1 & 2)
You must create two separate policies to achieve this setup without logic conflicts.
For Policy 1 (Block Unapproved Apps) & Policy 2 (Location Restrict App):
  1. Under Assignments, click on Users.
  2. Under Include, choose Select users and groups.
  3. Check Users and groups and select your target restricted user.
  4. Under Exclude, ensure your global emergency access ("break-glass") account is listed.
Step 3: Target Resources
For Policy 1 (Block Unapproved Apps):
  1. Under Target resources, select Cloud apps.
  2. Under Include, select All cloud apps.
  3. Under Exclude, select Select excluded cloud apps and choose your [Target Allowed App] (e.g., Office 365).
For Policy 2 (Location Restrict App):
  1. Under Target resources, select Cloud apps.
  2. Under Include, select Select apps and choose the identical [Target Allowed App] excluded in Policy 1.
  3. Leave the Exclude tab completely empty.
Step 4: Core Network Configuration (Policy 2 Only)
  1. In Policy 2, go to Conditions > Network.
  2. Set Configure to Yes.
  3. Under the Include tab, select Any location.
  4. Under the Exclude tab, select Selected locations.
  5. Choose your pre-configured trusted [Named Location].
Step 5: Access Control Enforcement
For both Policy 1 and Policy 2:
  1. Under Access controls, click on Grant.
  2. Select the radio button for Block access.
  3. Click Select.

Policy 1 blocks all other apps everywhere. Policy 2 blocks the allowed app everywhere except inside your named location.

Step 6:  Testing & What If Validation
  1. Set the Enable policy toggle at the bottom of both policies to Report-only and click Save.
  2. In the Conditional Access menu, click What If at the top.
  3. Under User, select your test user.
  4. Under Cloud apps, select your [Target Allowed App].
  5. Under IP address, type an external/untrusted IP address and click What If.
  6. Verify under Policies that will apply that Policy 2 shows a "Block" result.
  7. Change the IP address to your trusted corporate IP and run the tool again; Policy 2 should now appear under Policies that will not apply.
Step 7: Monitoring & Validation
  1. Navigate to Identity > Monitoring & health > Sign-in logs.
  2. Filter by the targeted user's name.
  3. Click on a specific sign-in row and open the Conditional Access tab.
  4. Review the policies listed to confirm they are evaluating as Success (meaning the logic triggered correctly) or Not Applied based on the location and app targeted.
Step 8: Enforcement & Go-Live
  1. Open Policy 1 and Policy 2.
  2. Change the Enable policy toggle from Report-only to On.
  3. Click Save.
  4. Monitor the live Sign-in logs closely for the next 24 hours to catch any unexpected user disruption or overlooked application dependencies.

Important Considerations

Best Practices
Summary

Revision #1
Created 2026-07-20 14:24:36 UTC by AK. Udofeh
Updated 2026-07-20 15:21:17 UTC by AK. Udofeh