Dynamic Distribution Group with no Disabled Accounts

Hi TaranjeetSM11,
Yes, you can create a Dynamic Distribution Group in Exchange Online using PowerShell and exclude disabled accounts.

Solution 1: In Exchange Online, use the AccountDisabled attribute in your filter rule. A disabled account in Entra ID will have AccountDisabled -eq $true

New-DynamicDistributionGroup -Name "ActiveUsersOnly" -RecipientFilter { 
    (RecipientType -eq 'UserMailbox') -and (AccountDisabled -ne $true) 
}

Solution2: If AccountDisabled doesn’t work, you can filter based on UserPrincipalName, as disabled users sometimes lack a valid UPN.

New-DynamicDistributionGroup -Name "ActiveUsersOnly" -RecipientFilter { 
    (RecipientType -eq 'UserMailbox') -and (UserPrincipalName -like '*@*') 
}

If you need any more help, feel free to reach out.