Hi @Nithin Karathan Chanolian,
I hope you’re having a great day. I appreciate your patience and the details you provided.
A - What's happening
The “DL” may actually be a personal Contact List (not an org-wide Distribution Group).
In Outlook on the web (and the new Outlook experience), users can create a Contact list / Contact group. This type of list is personal and stored under the creator’s mailbox/contacts. It works when you send a message (because you own the list), but other people won’t be able to use it unless they also create the same list in their own contacts.
For you reference: Create, edit, or delete a contact list (or contact group) in Outlook - Microsoft Support
1/ Why your test worked: When you sent the email, Outlook expanded the contact list and delivered it to recipients successfully.
2/ Why the member cannot use it: Because personal contact lists are not global objects in Exchange/Microsoft 365, they don’t show up as a shared, centrally managed DL that everyone can address or search in the organization directory.
To confirm, please check whether the group has:
- A real email address in your organization like ******@company.com (a true Exchange/M365 group), and is searchable in the Global Address List/Directory for other users.
- If it’s only visible under People > Your contact lists, it’s a personal contact list (creator-only).
Also, if the group was newly created in the Microsoft 365/Exchange admin center, please allow up to ~60 minutes for it to fully provision and become available across the service.
B - If it is a real Exchange Distribution Group
If the DL is an Exchange/M365 Distribution Group (i.e., centrally created and shows in the Global Address List), then the member’s inability to “use” it usually means sending is restricted or approval is required.
1/ Delivery restrictions (who is allowed to send to the group)
Exchange supports “message delivery restrictions” such as:
- Only allowing selected senders, or
- Requiring senders to be authenticated (internal only).
In this scenario, one member may be blocked from sending to the group even if they are a member, because membership and sending rights can be configured separately.
If that user gets an NDR/bounce message when trying to send, it typically indicates “not authorized” / “sender not permitted.”, please refer to the following Microsoft article for more details on this scenario: Fix NDR error 550 5.7.1 in Exchange Online - Exchange | Microsoft Learn
2/ Moderation enabled (messages require approval)
If the group is configured for moderation, emails sent to it are held for approval by a moderator before delivery. This can look like “I can’t use the DL” because messages don’t go through immediately.
More info here: Distribution group issues - Microsoft 365 | Microsoft Learn
C - Recommended next steps
Please ask the affected member to search the DL name/email in the Directory/Global Address List. If they can’t find it there, it strongly indicates a personal contact list rather than an org-wide DL.
1/ If you need everyone to be able to use it
If your goal is: anyone in the organization can email the group using one shared address, then you’ll want an Exchange/M365 Distribution Group (centrally managed and visible in the directory).
2/ If it’s already an Exchange Distribution Group
If it’s already an Exchange Distribution Group, please contact your organization’s IT administrator to review the group configuration (e.g., delivery restrictions or moderation settings).
In case your IT department cannot access the necessary information or make the required changes, I recommend asking them to open a request with Microsoft Support team through the Microsoft Admin Center. They have access to backend configurations and can perform a more in-depth investigation. At the very least, they can provide the most effective workaround to ensure your experience remains smooth and secure.
As community moderators, we appreciate your understanding that we do not have access to the administrative tools or permissions required to investigate or modify these configurations. We also do not have the capability to initiate remote sessions for direct assistance. Our role is to guide users to the appropriate resources and support channels.
I hope this information is helpful. Should you have any further questions or need additional assistance, feel free to reach out.
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