Step by Step How to Setup an Azure AD Domain Services Environment in Microsoft Azure


The Azure Active Directory Domain Services (AAD DS) is Microsoft’s ‘managed domain’ service in Azure. It provides a subset of fully compatible traditional AD DS features such as domain join, group policy, DNS service, LDAP, and Kerberos / NTLM authentication. learn more.

I am gonna show you, Step by Step How to set up an Azure AD Domain Services Environment in Microsoft Azure.

Step 1: Let’s go to the Microsoft Azure portal. Search for Azure AD Domain Services and click on the search result Azure AD Domain Services.

Step 2: Click on the Create Azure AD Domain Services button on the Azure AD Domain Services window.

Step 3: We have to select the Azure Subscription and the Resource group. Select your DNS domain name as your wish then Click on Next.

Step 4: In the Networking window, Select the Virtual Network and Subnet, or we can create a new Virtual Network as your wish for your managed domain. Then click Next.

Step 5: In the Administration window, Leave everything default. Click on Next.

Step 6: In the Synchronization window, Select the Scoped then click on Next.

Step 7: In the Security Settings windows, Leave everything as default. then click on Review + create.

Step 8: We can see now, the deployment under progress. (This can take up to 30 to 40 minutes).

The Azure AD DS deployment is ongoing.

Step 9: In this step, it will show you “Your deployment is complete”.

Azure AD Domain Services Running

Step 10: We can check it at the Azure AD Domain Services then Your managed domain ( under the Properties then DNS IP address.

Step 11: We have to create a Windows server Virtual Machine for Azure AD DS Management Tools. Follow the below screenshot to create a VM.

Step 12: In the Networking tab, select the Virtual Network and Subnet connected to the Azure AD Domain Services. Then click Review + create.

Step 13: Now, it will validate all the data entered by me and show you the Validation passed. Click on Create.

Step 13: Add the DNS IP address (Azure AD Domain Services) on the Vnet.

Step 14: Once the Management VM is ready, Join the Management VM to the domain (Azure AD Domain Services).

  • Check the DNS Server IP Address:
  • Ping the Primary Domain Controller and Secondary Domain Controller:
  • Join the Management VM to Domain ( Then restart the VM and login with a user that is member of the Azure AD AAD DC Administrators group.

Step 15: Open the Server Manager console, then click Add Roles and Features.

Step 16: Click on Next.

Step 17: Select the Role-based or feature-based installation and click on Next.

Step 18: Click on Next.

Step 19: In the Select Features console, add the following features.

  • Role Administration Tools
  • ADDS and AD LDS Tools
  • Active Directory module for Windows PowerShell
  • AD DS Tools
  • AD DS Snap-ins and Command-Line Tools
  • Group Policy Management Console (GPMC)
  • DNS Server Manager

Then click on Next.

Step 20: Click on Install.

Step 21: Once the installation is completed, we can now start the tools to manage the Active Directory Users and Computers, DNS Manager, and Group Policy Management to manage our Azure AD Domain Services managed domain (

I would greatly appreciate it if you kindly give some feedback on my articles. It will be a booster 🤝

That’s all for now 🙂

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