Microsoft Entra ID tenant stuck at 500 object limit despite Microsoft 365 licensing

Aladin Mujovic 20 Reputation points
2026-03-23T10:46:34.75+00:00

Hi everyone,

we are currently facing an issue with the Microsoft Entra ID tenant object limit.

Our tenant still shows the default limit of 500 objects, and we are already exceeding it.

Current situation:

  • Users: 334 (all licensed with Microsoft 365)
  • Total objects: ~593
  • Warning: "Tenant object quota exceeded"
  • Limit shown: 500 objects

Given the number of licensed users, the tenant should no longer be operating under the default 500 object limit.

However, the limit is still enforced and causing issues when managing identities and objects.

It seems like the tenant is still being treated as a "Free" tier directory despite active Microsoft 365 licensing.

Has anyone experienced a similar situation where the object quota did not automatically adjust based on licensing?

Any insights would be appreciated.

Thanks!

Microsoft Security | Microsoft Entra | Microsoft Entra ID
0 comments
Answer accepted by question author
Sridevi Machavarapu 33,820 Reputation points Microsoft External Staff Moderator
2026-03-23T11:01:27.85+00:00

Hello Aladin Mujovic,

The engineering team has raised the quota on your tenant since your organization surpassed the default Microsoft Entra service limit.

You can check and confirm if the directory object quota limit has been increased.

Hope this helps. Let us know if you have any queries. Happy to assist you further.

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