Request for Guidance: Sharing Power BI Report with External User

Hi JibinSebastian,

Thankyou for the update.

Based on our understanding, since you are still receiving the error message “Unable to grant permissions,” the issue may not be related to Power BI or Fabric. Instead, it could be associated with Microsoft Entra ID or Azure AD user resolution or invitation permissions.

Power BI can grant access only to users who already exist in the Entra directory, or in cases where the inviter has permission to add external users. Therefore, please ensure that the external user is added as a Guest in the Microsoft Entra Admin Center and that the user has accepted the invitation. Next, verify that the External collaboration settings allow guest invitations, and confirm that your account has the Guest Inviter role, with no domain restrictions. Additionally, please check in the Fabric Admin Portal that the following settings are enabled for the entire organization or that you are within the allowed scope.
1. Guest users can access Microsoft Fabric
2. Users can invite guest users

Once the guest user exists and the applicable policies allow it, sharing via a Power BI App or Org App that contains only the specific report is the best approach to restrict access without exposing workspace content.

If the issue still persists after completing the above steps, it may indicate Entra level restrictions such as cross-tenant limitations or conditional access policies. In that case, please contact your Entra administrator or raise a Microsoft Support ticket for further investigation using the link:Microsoft Fabric Support and Status | Microsoft Fabric

Additionally, please refer to the links below:
Quickstart: Add a guest user and send an invitation - Microsoft Entra External ID | Microsoft Learn
Configure external collaboration - Microsoft Entra External ID | Microsoft Learn
Publish an app in Power BI - Power BI | Microsoft Learn

We hope the information provided helps resolve the issue. Should you have any further queries, please feel free to contact the Microsoft Fabric community.

Thank you.