> Entra ID doesn’t allow you to blacklist or whitelist specific tenants for multi tenant apps.
This one very annoying "feature" where I could say this app is available for the following tenants. No, only "my tenant" or "all tenants in Azure".
One workaround I use is to set up apps with "only this tenant" and invite users from other tenants into my tenant. The other approach is to say "all tenants" and then use a group to enforce who can actually use the app.
I don't know if there are any reasons behind this limitation or just an oversight or no client big enough asked for this feature.
Inviting individual users is a good pattern. If you want to allow an entire tenant into your tenant (e.g. if your parent company has a subdivision that has their own tenant), Entra has cross tenant access [1] for that use case.
Generally, you should say "only this tenant" unless you're a SaaS provider. And if you're a SaaS provider, you should really already understand the need to keep your various customers data separate.
[1] https://learn.microsoft.com/en-us/entra/external-id/cross-te...