The outage had impacted services like Teams and Azure
Microsoft said in its status page that the Domain Name System (DNS) issue was resolved and that all Microsoft 365 services had returned to a healthy state.
DNS is effectively an address book of the internet which enables computers to match website addresses with the correct server.
Earlier, outage tracking website Downdetector showed over 8,000 incidents of people reporting issues with its widely-used Teams workplace messaging app.
Downdetector only tracks outages by collating status reports from a series of sources, including user-submitted errors on its platform.