The tenancy is set to Allow users to invite and share with authenticated external users and it works for site collections created from the admin center.

I am trying to set a communication site to the exact value and I am using this powershell script.

Set-SPOSite -Identity https://XXXXXXX -SharingCapability ExternalUserAndGuestSharing

I get an error message saying that

The SharingCapability set for this SPOSite will not take effect until the 'ExternalUserAndGuestSharing' SharingCapability is also enabled on the SPOTenant.

I thought ExternalUserAndGuestSharing was the same as "Allow users to invite and share with authenticated external users" but it does not seem the case.

What am I doing wrong?

I would like to avoid to set the tenancy to "Allow sharing to authenticated external users and using anonymous access links"


You have to use below command for external sharing with authenticated external user with valid email address.

Set-SPOSite -Identity https://XXXXXXX -SharingCapability ExternalUserSharingOnly 

Assuming you have below set at Tenant level

“Allow external users who accept sharing invitations and sign in as authenticated users”

Regarding ExternalUserAndGuestSharing - External user sharing (share by email) and guest link sharing are both enabled, this is for anonymous access.

Refer this link for more details

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