Forum Discussion
Fabric SharePoint Shortcut - Service Principle
Hi libpekin ,
Thank you for validating this in detail. Based on current Microsoft documentation, Service Principal app only authentication in Fabric and Power BI is mainly supported for REST APIs and specific scenarios, while SharePoint Online connectors rely on delegated user authentication with user context. Because of this, the initial connection using a Service Principal may succeed, but refresh operations on SharePoint files or folders can fail as they require delegated permissions.At present, there is no explicit Microsoft Learn document that directly states this limitation for Fabric SharePoint shortcuts, but the behavior aligns with how authentication is documented across these services, so this can be treated as a current limitation rather than a fully supported scenario.
please go through with the below document hope it may resolve your Issue:
Embed Power BI content in an embedded analytics application with service principal and an application secret - Power BI | Microsoft Learn
Power BI Desktop OneDrive and SharePoint integration - Power BI | Microsoft Learn
Authentication vs. authorization - Microsoft identity platform | Microsoft Learn
Hope the above provided information help you resolve the issue, if you have any further concerns or queries, please feel free to reach out to us.
Regards,
Community Support Team.
Hi libpekin,
Here's a blog post that might be helpful: https://heyniels.com/2026/03/15/connect-fabric-to-sharepoint-after-the-acs-retirement/
Hi libpekin,
Thanks for checking all the steps and sharing your results.
From what you tested, it is clear that everything works fine with your user account, but only failing when using Service Principal. So this is not a permission issue from your side.
The main reason here is the older method using ACS (App-only auth) is no longer supported for new tenants. That’s why the command to enable it is failing, and because of that the SharePoint-side access steps also won’t work.
As of now, Fabric SharePoint shortcuts are working properly with user (Entra ID) login, but Service Principal support for SharePoint Online is not fully supported in this scenario with the current setup.
That’s why even after giving all permissions, it still shows invalid credentials. So for now, you can continue using your Organizational account to create the shortcut. Your setup looks correct, nothing wrong from your end.
If you get any update after trying the blog shared earlier, please share here, it will help others also.
Regards,
Community Support Team.Thank you for your response. I’ve tested this extensively and can confirm that Fabric SharePoint Online shortcuts do not reliably work with a Service Principal. While the connection may succeed initially, any attempt to refresh SharePoint folders or files results in an error.
Can you confirm whether this limitation is documented anywhere in Microsoft Learn, and if so, please share the link? Many customers assume this scenario is supported, as most official Fabric documentation appears to imply Service Principal support.
Hi libpekin ,
Thank you for validating this in detail. Based on current Microsoft documentation, Service Principal app only authentication in Fabric and Power BI is mainly supported for REST APIs and specific scenarios, while SharePoint Online connectors rely on delegated user authentication with user context. Because of this, the initial connection using a Service Principal may succeed, but refresh operations on SharePoint files or folders can fail as they require delegated permissions.At present, there is no explicit Microsoft Learn document that directly states this limitation for Fabric SharePoint shortcuts, but the behavior aligns with how authentication is documented across these services, so this can be treated as a current limitation rather than a fully supported scenario.
please go through with the below document hope it may resolve your Issue:
Embed Power BI content in an embedded analytics application with service principal and an application secret - Power BI | Microsoft Learn
Power BI Desktop OneDrive and SharePoint integration - Power BI | Microsoft Learn
Authentication vs. authorization - Microsoft identity platform | Microsoft Learn
Hope the above provided information help you resolve the issue, if you have any further concerns or queries, please feel free to reach out to us.
Regards,
Community Support Team.