I am having troubles creating a template for my email that has a watermark that says "draft"

Outlook on the web does not provide a true text watermark feature, but you can create a “DRAFT” image, insert it into a message, and save that full message as a reusable Mail Template.

Create the template

1. Create a PNG or JPG containing the word DRAFT—preferably light gray and sized so it does not overwhelm the message.
2. In Outlook on the web, select New → Mail.
3. Place the cursor where the watermark should appear.
4. Select Insert → Pictures, choose the image, and select Open. Use the corner handles to resize it. Outlook supports inline images in the message body.^1^
5. Add the standard subject, body text, recipients, and attachments that should be reusable.
6. On the Message ribbon, select Mail template → Save email as template.
7. Name it—for example, Draft email—and select Save. Full Mail Templates retain the body’s rich formatting and images.^2^

To use it later, select Home → New → Mail from template, choose the template, edit the resulting draft, and send it.^3^

Important limitations

• The image is inline content, not a floating, semi-transparent watermark behind the email text. Outlook on the web’s documented editor supports inserting an image into the body, but does not document Word-style watermark positioning.
• Use Mail Templates, not My Templates. Mail Templates support full messages, rich formatting, images, tables, and attachments; My Templates is intended for short text snippets with basic styling.^2^
• Mail Templates and My Templates in Outlook on the web require a qualifying Microsoft 365 subscription.^2^
• Avoid custom HTML/CSS background-image techniques. Email clients render them inconsistently; Outlook Classic, in particular, does not natively support CSS background images on sections and columns.^4^
• Test the template by sending it to yourself and viewing it in both Outlook web and any desktop/mobile clients your recipients commonly use.

If Mail template is unavailable, the documented feature may not be included with the account’s subscription. As a simpler fallback, insert the DRAFT image manually in each message, or place a prominent DRAFT heading at the top of the email.

References

1. [Web](https://support.microsoft.com/outlook/mail/add-pictures-or-attach-files-to-emails-in-outlook)
2. [Outlook on the web](https://support.microsoft.com/outlook/create-email-templates-in-outlook#create-a-template-using-mail-templates)
3. [Classic Outlook](https://support.microsoft.com/outlook/send-an-email-message-based-on-a-template)
4. Troubleshoot email rendering issues in Customer Insights - Journeys