Fix Microsoft 365 “Unlicensed Product” Warning After Update (2025 Solutions)
After installing the latest Windows or Office updates, does your Microsoft 365 show a red bar on top saying “Unlicensed Product” or “Product Deactivated”? Don’t panic — this is a common issue in 2025 caused by temporary license mismatches or expired tokens. The good news is that it can be fixed easily using the proven steps in this guide.
🧭 Why Does the “Unlicensed Product” Error Appear?
This message usually means that Microsoft 365 couldn’t verify your subscription or product key. It can happen due to:
- Recent Windows or Office updates that reset activation tokens
- Expired Microsoft 365 subscription or payment issue
- Office apps signed in with the wrong account
- Corrupted Office license files
- Firewall or proxy blocking Microsoft activation servers
🧰 Step-by-Step Fixes for Office 365 “Unlicensed Product” Warning
1️⃣ Verify Your Subscription Status
Before anything else, check if your Microsoft 365 subscription is active.
- Go to account.microsoft.com/services
- Sign in using the same account linked to Office 365
- Check your plan’s renewal or expiry date
- If expired, renew your subscription and restart your device
2️⃣ Sign Out and Sign Back In
Sometimes Office apps get confused between work/school and personal accounts. Logging out and back in can refresh your credentials.
- Open Word or Excel → Click File → Account
- Under “User Information,” click Sign Out
- Restart the app → Sign in again with the correct licensed email
3️⃣ Reactivate Using Command Prompt (Advanced)
If the warning persists, you can manually refresh the activation files using these commands:
cd %ProgramFiles%\Microsoft Office\Office16 cscript ospp.vbs /dstatus cscript ospp.vbs /act
Wait for the message “Product activation successful.” If you see errors, move to the next step.
4️⃣ Repair Office Installation
A corrupted Office installation can cause recurring license mismatches.
- Press Win + R → type
appwiz.cpl→ hit Enter - Select Microsoft Office 365 → click Change
- Choose Quick Repair first; if it doesn’t help, try Online Repair
5️⃣ Clear Cached License Files
Deleting cached activation data forces Office to re-fetch valid tokens.
- Press Win + R → type
%ProgramData%\Microsoft\Office\Licenses - Delete all files inside this folder
- Reopen any Office app and sign in again
6️⃣ Check Your Internet & Firewall Settings
Office needs to reach Microsoft’s activation servers. Disable VPNs or firewalls temporarily, then try again.
💡 Bonus Tip: Switch to Cloud Sign-In
Many older activations use legacy keys or local licensing. The modern Microsoft 365 subscription model uses cloud-based identity validation, which avoids most of these issues. Signing in through your Microsoft account instead of entering a product key keeps activation synced automatically.
📘 Related Blog
If you’re facing an activation error code like 0xC004F074 instead of “Unlicensed Product,” follow this guide:
👉 Fix Office 365 Activation Failed — Error 0xC004F074
