"Exchange is in recovery mode" is an ambiguous error that can be difficult to diagnose. It could indicate that Microsoft Outlook is detecting differences between cached data on the client machine and data stored on Exchange Server. But an "Exchange is in recovery mode" error could also signify misconfigured DNS settings or an Active Directory issue. This SearchExchange.com troubleshooting guide will help you pinpoint and fix "Exchange is recovery mode" errors in your environment.
Potential Cause
Cached Exchange mode
If an old email profile is used against an information store that was recovered or imported from another store, it can cause a conflict between local data and remotely cached data. The solution in such a case is to delete and recreate the Exchange Server profile for the Microsoft Outlook client in question.
If a client machine is unable to resolve the Exchange Server because of misconfigured internal DNS settings, you may receive a (rather misleading) "Exchange is in recovery mode' error.
A failure to have the client rejoined to the proper domain (but not necessarily a complete failure of network connectivity) can also cause an "Exchange is in recovery mode" error. This is more of an Active Directory problem than an Exchange Server problem. But so much of Exchange Server's functionality is tied into how Active Directory works, so the two are essentially inextricable.
More Active Directory troubleshooting tips, tools and advice:
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