Delivery has failed to these recipients or groups: Your message can’t be delivered because delivery to this address is restricted.

You probably have a lot of devices like printers, main frames and other non Microsoft systems sending mail to distribution groups inside your organisation.

If that’s the case and you receive an NDR as per below screenshot then you need to check authentication settings on the distribution group.

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I recently had this problem where mail would not deliver to the recipients and after some testing we were able to generate the above NDR. The Distribution Group was set t only allow mail from authenticated users thus the reason for the mail delivery failure. The main frame is not able or setup to authenticate with Active Directory and could not send mail to that Distribution Group.

Follow the below steps to rectify the problem:

1. Open the Exchange Management Console
2. Click on “Recipient Configuration”
3. Click on “Distribution Group”
4. Find the Distribution Group that is not receiving the e-mail
5. Double click the Distribution Group or Right Click on it and choose Properties
6. Click on the “Mail Flow Settings” Tab
7. Double Click on “Message Delivery Restrictions”
8. Clear the check box next to “Require that all senders are authenticated” as per below screen shot. Now test mail flow from your system that is not able to authenticate.

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