The RDS grace period on Windows Server 2025 is a 120-day window in which the Remote Desktop Session Host role lets users connect without a licence server. When it ends, new sessions are refused with "no Remote Desktop License Servers available to provide a license". There is no supported way to reset it. Microsoft's own troubleshooting guide says it does not recommend a reset and tells you to set up a licence server with licences instead. You have two legitimate ways out. If one or two people connect at a time, remove the RD Session Host role and use the two administrative connections that need no extra licences. If more people connect, install RD Licensing, activate it and add Windows Server 2025 RDS CALs, because a 2025 host accepts no older CALs.
Key facts, checked on 9 October 2026:
- Microsoft documents "a licensing grace period of 120 days during which no license server is required" (RDS CAL overview, Microsoft Learn).
- Windows Server allows two concurrent remote connections without RDS client access licences; a third connection or several user desktops need the RD Session Host role plus CALs (Microsoft Learn troubleshooting article).
- A Windows Server 2025 session host accepts only Windows Server 2025 RDS CALs. 2022, 2019 and 2016 CALs are listed as "No" in Microsoft's CAL compatibility table.
- Servers that are not joined to an Active Directory domain (a "workgroup", which is what a single rented VPS usually is) must use Per Device CALs; Per User CALs are not permitted there (License RD session hosts).
- The 60-minute "soft enforcement" that let users in temporarily during licence problems was removed in Windows Server 2022, so on 2025 an expired grace period means refused sessions, not a warning (Microsoft Learn).
Which fix fits: decide by the number of people
Count the people who need to be connected at the same time, then read across. Note that CALs are counted per person or per device, not per connection: five colleagues taking turns from five laptops still need five.
| People connected at once | What to run | Licences to buy for Remote Desktop | Typical plan |
|---|---|---|---|
| 1 (just you) | Plain Windows Server. Remove the RD Session Host role if someone installed it. | None. You use one of the two built-in administrative connections. | VPS Mini |
| 2 (you and a colleague) | Same as above, each person with their own Windows account. | None for the two connections. Read the note on "administration" below. | VDS Small, since each session holds its own programs in memory |
| 3 to 10 (a small office) | RD Session Host and RD Licensing on the same server, licensing mode Per Device. | One Windows Server 2025 RDS Device CAL for every PC, laptop or phone that connects. | VDS Small or VDS Medium |
| More than 10, or staff on many devices | An Active Directory domain with RD Session Host, RD Licensing and usually RD Connection Broker. | Windows Server 2025 RDS User CALs (possible only in a domain), one per person. | VDS Medium or VDS Large, often more than one server |
The plan column is our own sizing, not a Microsoft rule. RDS CALs are not part of our Windows VPS, and from the third simultaneous user they are needed on any Windows server, so if more than two people will work at once, message us on Telegram before you order and we will go through the licensing route with you.
What the RDS grace period is, in plain words
A few terms first, each in one line:
- Remote Desktop Services (RDS) is the part of Windows Server that lets many people work on one server at once, each in their own desktop.
- RD Session Host is the role you install to turn a normal server into such a multi-user server (it used to be called a terminal server).
- RDS CAL, a client access licence, is the permission for one user or one device to use that multi-user server.
- RD Licensing is the role that holds your CALs and hands them out. Microsoft calls a server with this role a licence server.
The grace period gives you time to build and test a session host before the licences arrive. Microsoft's article on the licensing warning says that "by default, a newly created RD Session Host has a grace period of 120 days". After that, every client needs a valid CAL from a licence server before it can sign in.
Two common mix-ups. The RDS grace period has nothing to do with Windows activation: a fully activated server still runs out of RDS grace. And a server without the RD Session Host role has no grace period at all; it stays in what Microsoft calls Remote Desktop for Administration mode, with its two connections, indefinitely.
Per user or per device?
Microsoft offers two kinds of RDS CAL. A Per Device CAL is tied to a computer or phone: anyone may use that device to connect. A Per User CAL is tied to a person in Active Directory, who may connect from any number of devices. The difference that matters on a rented server is the workgroup rule: if the server isn't joined to a domain, Microsoft says you have to use Per Device CALs. Per User CALs "can't be tracked within a workgroup".
A device gets a temporary CAL on its first sign-in, valid for 90 days, and a permanent one on its next connection, renewed every 52 to 89 days. When a laptop is replaced, you can revoke up to 20% of Per Device CALs and reuse them.
What happens on day 121: the exact messages
While the grace period runs, users who connect see a balloon in the corner of the screen. Microsoft quotes it as:
# message shown in the session during the grace period
Remote Desktop licensing mode is not configured. Remote Desktop Services will stop working in x days. On the RD Connection Broker server, use Server Manager to specify the Remote Desktop licensing mode.Once the grace period has passed, the same balloon says "will stop working because this computer is past its licensing grace period". After that, new connections are refused and the Remote Desktop app shows:
# error shown by the Remote Desktop app when the grace period has ended
The remote session was disconnected because there are no Remote Desktop License Servers available to provide a license.Some clients only show "Access was denied because of a security error." Inside the server, the RD Licensing Diagnoser reports that the grace period "has expired, but the RD Session Host server hasn't been configured with any license servers". Event ID 1088 from TermService carries the same news. Its text still says a terminal server "can operate without a license server for 90 days", a leftover from older Windows versions; the current figure is 120 days.
Microsoft notes that the balloon also appears in an administrative session, even when everything is set up correctly, so it alone proves nothing. And since Windows Server 2022 there is no 60-minute courtesy session: older servers let users in for an hour at a time when licensing broke, newer ones don't.
If your error is something else, such as a timeout, "Your credentials did not work" or error 0x204, the grace period is not the cause. Our guide to Remote Desktop connection errors and fixes goes through those one by one.
How to see how many grace days are left
Microsoft's RDS licensing troubleshooting guide gives a two-line PowerShell check, under the heading "Grace period". It reads the Win32_TerminalServiceSetting class and calls its GetGracePeriodDays() method. We had no Windows session host in our lab for this article, so we did not run it ourselves; copy the two lines from that Microsoft page and paste them into Windows PowerShell opened as administrator on the server (Start, type PowerShell, right-click Windows PowerShell, Run as administrator).
The answer contains a DaysLeft value. Microsoft's reference for GetGracePeriodDays says it is the number of days remaining, and that zero means the grace period is over. Use the Windows PowerShell that comes with Windows Server, not PowerShell 7: Microsoft's lines use gwmi, short for Get-WmiObject, which PowerShell 7 no longer includes.
Older guides use a wmic command instead. From Windows Server 2025, WMIC is only an optional Feature on Demand that Microsoft says will be removed in a future release, so stick to PowerShell. Prefer clicking? Server Manager's RD Licensing Diagnoser, under Tools, Remote Desktop Services, reports the same problems in plain sentences.
Locked out already? Get back in with /admin
If the grace period has ended and Remote Desktop refuses you, you can usually still reach the server for maintenance. The mstsc reference describes /admin as connecting "to a session for administering the server", and Microsoft's guide to this exact error says the switch "disables licensing for just that connection". On your own Windows PC, first check that the server answers on the Remote Desktop port:
# as the normal user on your own Windows PC (PowerShell)
Test-NetConnection -ComputerName YOUR_SERVER_IP -Port 3389The last line should read TcpTestSucceeded : True, as in our Windows RDP setup guide, where we ran it against a live server. Then open Remote Desktop Connection with the admin switch: in the same window type mstsc /v:YOUR_SERVER_IP /admin and sign in with an administrator account. That switch follows Microsoft's documentation; we had no expired session host to try it on. If you cannot get in at all, the console in our client area still shows the server's screen.
Way out 1: remove the RD Session Host role and keep two free connections
This is the right fix for most single-owner VPS servers, where the role was often added by a tutorial promising "more RDP sessions" and nobody needed it. Microsoft's advice for this error is short: if you don't need more than two simultaneous connections, use Server Manager to remove the Remote Desktop Server role.
- Connect with
mstsc /v:YOUR_SERVER_IP /adminas above. - In Server Manager, open Manage, then Remove Roles and Features, and click Next until you reach Server Roles.
- Open Remote Desktop Services and untick Remote Desktop Session Host. If the RD Licensing role is there and you won't use it, untick it too. If the wizard lists related features to remove with it, confirm.
- Click Remove and restart the server when asked.
After the restart the server is back in Remote Desktop for Administration mode and normal connections work again. There is no grace period to count down any more, because there is no session host. Give each of the two people their own account in the Remote Desktop Users group, as shown step by step in our Windows RDP guide, rather than sharing Administrator.
One caveat:Microsoft words these as connections for administration. Its overview of Remote Desktop licensing speaks of "two concurrent connections to remotely administer a computer". If two staff will use the server daily as their office desktop, ask your Microsoft licence reseller whether that still counts. We are a hosting company, not a licensing authority.
Way out 2: license the server properly with Windows Server 2025 RDS CALs
When three or more people need their own desktops, you need the RD Session Host role and real CALs. For a single VPS the simplest layout is to put RD Licensing on the same server. That also spares you an extra workgroup step: since the CVE-2024-38099 security update, a licence server in a workgroup demands proper credentials from session hosts, but Microsoft says you can skip that setup when both roles run on the same machine.
Step 1: install and activate RD Licensing
- In Server Manager, choose Manage, then Add Roles and Features, then Role-based or feature-based installation.
- Tick Remote Desktop Services, click Next to its role services and tick Remote Desktop Licensing. Accept the features it adds and install.
- Open Tools, Remote Desktop Services, Remote Desktop Licensing Manager. Select your server and choose Action, Activate Server.
- Pick Automatic connection, which talks to the Microsoft Clearinghouse over outbound TCP port 443, and fill in your company details.
These steps follow Microsoft's page on activating the RDS licence server, which also covers activation through a web browser or by phone for servers without internet access.
Step 2: install the CALs you bought
In Remote Desktop Licensing Manager, right-click the server and choose Install licenses. Pick the programme you bought through, enter the licence code or agreement number, and choose the product version, the type (Per Device on a workgroup server) and the quantity. Microsoft's CAL installation guide lists the steps. The version you pick must match the host:
| Session host | 2025 CAL | 2022 CAL | 2019 CAL | 2016 CAL |
|---|---|---|---|---|
| Windows Server 2025 | Yes | No | No | No |
| Windows Server 2022 | Yes | Yes | No | No |
| Windows Server 2019 | Yes | Yes | Yes | No |
Source: RDS CAL version compatibility. Newer CALs work on older hosts, never the other way round. The licence server itself must run the same Windows Server version as the CALs or newer, which is automatic when it lives on your 2025 host.
Step 3: tell the session host where its licences are
Without an RD Connection Broker (the usual case on one VPS), Microsoft sets this through local Group Policy:
- Run
gpedit.mscand go to Computer Configuration, Administrative Templates, Windows Components, Remote Desktop Services, Remote Desktop Session Host, Licensing. - Open Use the specified Remote Desktop license servers, select Enabled and type the server's own name.
- Open Set the Remote Desktop licensing mode, select Enabled and choose Per Device.
Then run the RD Licensing Diagnoser again; it should report no problems. These policy settings override anything set in the Server Manager deployment screen.
Licensing on a rented server
Microsoft has extra rules for licences used on a hosting provider's shared hardware: providers license through the Services Provider License Agreement (SPLA), and customers bringing their own licences use License Mobility, with a verification form sent to Microsoft. Before you order a Windows VPS for three or more people, tell us on Telegram how many users and devices will connect, and check the purchase with your Microsoft reseller.
Why we don't show the registry "reset"
Most top results for this search show a registry edit that makes Windows forget the 120 days have passed. We deliberately leave out the steps. Restarting a licensing timer to keep a multi-user server running without CALs circumvents Microsoft's licensing and breaks the licence terms you accepted with Windows Server. Microsoft's troubleshooting guide says a reset is not recommended and that you "must implement a license server together with a license pack".
It is a poor deal anyway: the problem returns every 120 days, and an audit sees a session host with users and no CALs. For one or two people, way out 1 fixes it for good, legally, in about the same time.
Frequently asked questions
How long is the RDS grace period on Windows Server 2025?
120 days from the creation of the RD Session Host, according to Microsoft. During that time no licence server is needed. After it, every user or device needs a valid RDS CAL from an activated licence server, or the connection is refused.
Can I reset the RDS grace period on Windows Server 2025?
Not legitimately. Registry tricks that restart the timer circumvent Microsoft's licensing and break the licence terms, and Microsoft says it does not recommend a reset. Remove the RD Session Host role if two connections are enough, or install RD Licensing with Windows Server 2025 RDS CALs.
How many users can connect to Windows Server without RDS CALs?
Two at the same time. Microsoft documents that Remote Desktop supports two concurrent remote connections without RDS CALs, meant for administering the server. A third connection, or several people each working in their own desktop, needs the RD Session Host role and RDS CALs.
Can I use Windows Server 2022 RDS CALs on a 2025 server?
No. Microsoft's compatibility table shows that a Windows Server 2025 session host accepts only Windows Server 2025 RDS CALs. Newer CALs work on older servers, so 2025 CALs also cover 2022, 2019 and 2016 hosts.
Per user or per device CALs for a single VPS?
Per Device, in most cases. A single VPS is usually not joined to an Active Directory domain, and for workgroup servers Microsoft says Per User CALs aren't permitted. Buy one Per Device CAL for every computer, laptop or phone that will connect.
What does mstsc /admin do when the grace period has expired?
It opens an administrative session that doesn't request an RDS licence, so an administrator can still sign in to fix licensing or remove the RD Session Host role. Microsoft's guide for the "no Remote Desktop License Servers available" error gives it as the workaround for getting back in.
Before you order a Windows server for a team
Count the people who will be connected at the same time. One or two: order a Windows VPS, leave the RD Session Host role alone and you will never see a grace period. Three or more: plan Windows Server 2025 RDS CALs from day one, Per Device on a single server, and talk to us before ordering. RS Computers runs Windows Server on VPS Mini and every VDS plan in Amsterdam, Dublin and Prishtina, and availability by city is on the plans page. Compare the options on the Windows VPS page, or message us on Telegram with your number of users and we will help you pick the setup.