What is a Local Administrator Password Solution (LAPS)?

Updated on August 14, 2025

Local Administrator Password Solution (LAPS) represents a critical security tool in modern Windows environments. This Microsoft-developed solution addresses one of the most persistent vulnerabilities in enterprise networks — shared local administrator passwords across multiple machines.

LAPS automates the management of local administrator account passwords by generating unique, complex passwords for each computer in your Active Directory (AD) environment. The solution stores these passwords securely in AD as encrypted attributes, accessible only to authorized personnel.

Understanding LAPS becomes essential when you consider that many organizations still use identical local administrator passwords across their entire infrastructure. This practice creates a massive security gap that attackers exploit through lateral movement techniques.

Definition and Core Concepts

LAPS functions as a security solution that stores a unique, randomized password for the local Administrator account of each computer in a Windows Active Directory environment. The password gets encrypted and stored as a confidential attribute on the computer’s object in AD.

Several foundational concepts underpin LAPS functionality:

• Local Administrator Account serves as the default, highly privileged local account on every Windows computer. This account provides complete control over the local system and can install software, modify system settings, and access all local resources.
• Pass-the-Hash represents a cyberattack technique where attackers reuse stolen password hashes for authentication without needing to crack the actual password. This attack method proves particularly effective when organizations use identical local administrator passwords across multiple systems.
• Lateral Movement describes the technique attackers use to move from one compromised machine to another within a network. Shared local administrator credentials make this movement trivial for attackers.
• Active Directory (AD) functions as Microsoft’s directory service that LAPS uses to store and manage the randomized passwords. AD provides the authentication and authorization infrastructure necessary for LAPS operation.

How It Works

LAPS operates through a systematic process that ensures each computer maintains a unique local administrator password:

Schema Extension

An administrator first extends the Active Directory schema to add new attributes to computer objects. These attributes store the encrypted password and expiration timestamp. The schema extension requires Domain Admin or Schema Admin privileges and affects the entire forest.

GPO Deployment

A Group Policy Object (GPO) gets deployed to configure LAPS settings across target computers. The GPO specifies password complexity requirements, expiration intervals, and which local account LAPS manages. Common settings include 14-character passwords with mixed case, numbers, and symbols, rotating every 30 days.

Client-Side Extension Installation

A LAPS client-side extension (CSE) gets installed on all target computers through the GPO or manual deployment. This lightweight component handles local password generation and communication with Active Directory.

Password Generation

The CSE on each computer uses a cryptographically secure random password generator to create new, unique passwords for the local Administrator account. The generator follows the complexity requirements specified in the GPO configuration.

Password Storage

The CSE encrypts the new password using industry-standard encryption and writes it to the computer’s object in Active Directory. The password gets stored in the confidential attribute added during schema extension, ensuring proper access control.

Read Permissions

Only authorized administrators and service accounts receive read permissions to view passwords for specific computers. This granular permission model ensures that help desk technicians can only access passwords for computers they support, while senior administrators maintain broader access.

Key Features and Components

LAPS delivers several critical characteristics that enhance enterprise security:

• Unique Passwords ensure every computer maintains a different local administrator password. This approach prevents attackers from using a single stolen credential to compromise multiple machines across the infrastructure.
• Randomization produces complex, randomly generated password strings that resist guessing or brute-force attacks. The passwords typically include uppercase letters, lowercase letters, numbers, and special characters in unpredictable combinations.
• Time-Based Expiration automatically changes passwords on a configurable schedule. This feature reduces the window of opportunity for attackers who might compromise a password, as the credential becomes invalid after the expiration period.
• Granular Access Control strictly manages access to stored passwords using Active Directory permissions. Organizations can delegate password access based on organizational units, computer groups, or individual systems.

Use Cases and Applications

LAPS addresses several critical security scenarios in enterprise environments:

Endpoint Security

The primary application focuses on securing endpoints against lateral movement attacks. When attackers compromise one system, they cannot use the same local administrator credentials to access additional machines. This containment significantly limits the blast radius of security incidents.

Privileged Access Management (PAM)

LAPS serves as a foundational component of comprehensive PAM strategies. It automates the management of local administrative accounts, reducing the manual overhead associated with password rotation and access control for privileged credentials.

Compliance Requirements

Many regulatory frameworks mandate unique, strong passwords for privileged accounts. LAPS helps organizations meet these requirements by enforcing complex password policies and maintaining audit trails of password access and rotation activities.

Advantages and Trade-offs

LAPS provides substantial benefits while introducing specific limitations:

Advantages

• Lateral Movement Mitigation represents the primary security benefit. Attackers who compromise one machine cannot use the same local administrator password to access additional systems, effectively containing the breach to the initial target.
• Cost-Effective Implementation makes LAPS attractive to organizations of all sizes. Microsoft provides LAPS as a free solution for Windows environments, eliminating licensing costs associated with third-party privileged access management tools.
• Automation Capabilities eliminate the manual processes traditionally required for local administrator password management. IT teams no longer need to manually generate, distribute, and rotate these credentials across hundreds or thousands of systems.

Trade-offs

• Active Directory Dependency limits LAPS to environments with AD infrastructure. Standalone computers or workgroup configurations cannot utilize LAPS functionality, requiring alternative solutions for password management.
• Limited Account Scope restricts LAPS to managing only the built-in local Administrator account. Organizations with custom local administrative accounts or service accounts must implement additional tools for comprehensive privileged access management.

Troubleshooting and Considerations

Several common issues can affect LAPS implementation and operation:

Troubleshooting

• Replication Issues can prevent LAPS passwords from updating correctly across domain controllers. Monitor AD replication health and resolve any replication failures that might affect password synchronization between domain controllers.
• Client-Side Extension Problems may prevent password generation and storage. Verify that the LAPS CSE installs correctly on target computers and check Event Logs for LAPS-related errors during password rotation attempts.

Security Considerations

• Security Auditing requires implementation to monitor unauthorized access to LAPS passwords in Active Directory. Configure auditing policies to log all access attempts to the LAPS password attributes and review these logs regularly for suspicious activity.
• Least Privilege Principles must guide permission assignments for LAPS password access. Grant read permissions only to accounts that require access for legitimate business purposes, and regularly review these permissions to prevent privilege creep.

Key Terms Appendix

• Pass-the-Hash – A cyberattack technique that reuses stolen password hashes for authentication without requiring the plaintext password.
• Lateral Movement – The process of moving between compromised systems within a network to expand access and reach additional targets.
• Active Directory (AD) – Microsoft’s directory service for Windows networks that provides authentication, authorization, and resource management capabilities.
• Group Policy Object (GPO) – A collection of configuration settings used to manage computers and users in an Active Directory environment.
• Privileged Access Management (PAM) – The comprehensive strategy and toolset for managing, monitoring, and securing privileged accounts and access across an organization.