Short answer: ❌ No, Microsoft cannot recover or reset a lost Excel file password.

Long answer: This is by design, and it comes down to how Excel encryption works, how Microsoft handles user data, and why recovery is intentionally impossible.

Why Microsoft Cannot Recover Excel Passwords 🔐

When you apply a password to open an Excel file, Microsoft Excel does not store that password anywhere — not on your device, not in OneDrive, not on Microsoft servers.

Instead, Excel transforms your password into a cryptographic key using advanced algorithms. This key then encrypts the entire workbook. Only the exact same password can regenerate the key needed to decrypt it.

💡 Key Point: Microsoft has no copy of your password, no central database, and no override mechanism. Even Microsoft engineers cannot decrypt your file without the password.

This design is intentional. If Microsoft could recover passwords, that would mean they hold a master key, which would be a massive security vulnerability. Governments could demand access, hackers could exploit recovery systems, and business data would be at risk.

Excel Encryption by Version ⚙️

Understanding how encryption evolved across Excel versions helps clarify why recovery is impossible.

Excel Version File Type Encryption Used Can Microsoft Recover?
Excel 97-2003 .xls RC4 (40-128 bit) No
Excel 2007-2010 .xlsx AES-128 No
Excel 2013-2024 / Microsoft 365 .xlsx AES-256 No

AES-256 is military-grade encryption. Without the password, the file contents are mathematically unreadable. There is no reset link, no admin bypass, and no support ticket that can unlock it.

What About OneDrive or Microsoft Account Access? ☁️

A very common misconception exists among users:

"My Excel file is on OneDrive. Microsoft must be able to unlock it."

That is not how it works. Here is what you need to understand:

  • OneDrive stores only the already-encrypted file
  • Your Microsoft account does not contain file passwords
  • Microsoft Support cannot decrypt files, even for enterprise customers

Microsoft can help you recover:

  • ✅ Your Microsoft account
  • ✅ Your Office license
  • ✅ Access to OneDrive

But not the password protecting the Excel file itself.

Why Microsoft Designed It This Way 🛡️

If Microsoft could recover Excel passwords, several major security concerns would arise:

🏛️ Legal Pressure

Governments could legally demand file access through court orders.

🎯 Security Exploits

Hackers could target recovery systems to gain unauthorized access.

📊 Data Privacy Risk

Business and personal data would be constantly vulnerable.

By making password recovery impossible, Microsoft guarantees:

  • Zero-knowledge security — Microsoft cannot access your encrypted data
  • Strong GDPR and compliance alignment — meeting global privacy standards
  • Full user ownership — you control your encrypted data completely
⚠️ Remember: Security that allows recovery is security with cracks 🧱. True encryption means no backdoors exist.

So How Do People Recover Lost Excel Passwords? 🔧

Answer: Since Microsoft cannot help, users turn to third-party password recovery tools. This is where specialized password recovery software and services come into play.

Understanding Recovery Methods

Password recovery tools use several approaches:

Method How It Works Best For
Dictionary Attack Tests common passwords from a list Simple or common passwords
Brute Force Tries every possible combination Short passwords (under 8 characters)
Mask Attack Uses partial password knowledge When you remember some details
AI-Assisted Predicts likely password patterns Human-created passwords

Recovery success depends heavily on:

  • Password complexity and length
  • Excel version and encryption type
  • Available computing power
  • Any partial password memory

Niraiya.com Excel Password Recovery ⭐

Niraiya.com offers a privacy-first Excel password cracking approach, designed specifically for modern Excel files.

Key Highlights

✅
Browser-based processing

Your Excel file stays on your device. Only encryption metadata is used.

✅
Supports all Excel versions

From Excel 97 (.xls) to Microsoft 365 (.xlsx).

✅
AI-assisted recovery logic

Uses intelligent pattern analysis instead of blind brute force.

✅
Pay only if successful

No recovery, no charge.

✅
No file upload to external servers

Strong focus on data privacy and security.

This makes Niraiya.com especially useful when:

  • You remember part of the password
  • The file contains sensitive or confidential data
  • You want recovery without cloud uploads

How to Avoid This Situation in the Future 📝

Prevention is always better than recovery. Here are practical steps to avoid Excel password lockouts:

1. Use a Password Manager

Tools like 1Password, Bitwarden, or LastPass store passwords securely and sync across devices. This eliminates the need to remember dozens of passwords.

2. Store Recovery Hints Securely

Keep a secure note with password hints (not the actual password) in a protected location.

3. Avoid Overly Complex Passwords for Critical Files

While strong passwords are important, making them so complex that you forget them defeats the purpose. Balance security with memorability.

4. Use Access Control Instead of File Encryption

For shared workbooks, consider using:

  • SharePoint permissions instead of password protection
  • Read-only sharing for view-only access
  • OneDrive sharing settings for controlled collaboration
💡 Pro Tip: In my own campaigns managing client data, we have shifted from file-level passwords to platform-level permissions, which provides better security and easier access management.

Final Verdict ✅

  • Microsoft cannot recover lost Excel passwords — this applies to all Excel versions, including Microsoft 365
  • Excel encryption is by design unbreakable — without the password, the data remains encrypted
  • OneDrive access does not grant password recovery — Microsoft Support cannot decrypt your files
  • The only recovery path is through specialized Excel password hacking tools — like those using AI-assisted techniques
  • Services like Niraiya.com provide a privacy-focused, modern alternative when recovery is possible