If a Word document contains sensitive information — a contract, salary details, client data, or anything you would not want someone to open accidentally — adding a password is quick and straightforward. Word gives you two distinct types of protection, and understanding the difference helps you pick the right one for the situation.
Two Types of Protection: Open Password vs Editing Restriction
An open password (also called encryption) prevents anyone from opening the file at all without the password. The document is encrypted using AES-256, which is genuinely strong. Without the correct password, the file is unreadable.
An editing restriction lets people open and read the document but limits what they can change. You can allow no changes, only tracked changes, only form filling, or comments only. This does not encrypt the file, so someone technically skilled could work around it — but it is perfectly adequate for most business purposes.
You can use both types together: require a password to open, and then restrict editing once the document is open.
How to Encrypt a Document With a Password
- Open the document in Word.
- Go to File > Info.
- Click Protect Document.
- Choose Encrypt with Password.
- Type your chosen password and click OK.
- Type it again to confirm and click OK.
- Save the file with Ctrl+S. The password protection does not take effect until the file is saved.
Next time anyone tries to open the document — including you — Word will ask for the password before showing any content. This applies whether the file is opened from a USB stick, emailed as an attachment, or stored on a shared drive.
Choosing a Strong Password
Because the encryption is strong, the password is the only weak point. Use at least 12 characters, mix upper and lower case, and include numbers and symbols. Avoid anything obvious like the company name or a date. Most importantly, store it somewhere safe — a password manager is ideal. If you forget it, recovery is extremely difficult (see below).
How to Restrict Editing Without a Full Password
If you want people to be able to read but not alter a document — for example a price list or an employee handbook — use editing restrictions instead of (or in addition to) a password.
- Go to File > Info > Protect Document > Restrict Editing.
- The Restrict Editing panel opens on the right.
- Under Editing restrictions, tick Allow only this type of editing in the document.
- Choose from the dropdown:
- No changes (Read only) — nobody can edit anything
- Tracked changes — edits are allowed but all changes are tracked
- Comments — readers can add comments but not change text
- Filling in forms — only form fields can be filled in
- Click Yes, Start Enforcing Protection.
- Enter a password if you want to prevent others from turning off the restriction, or click OK without a password (anyone can remove it in that case).
- Save the file.
Allowing Specific Sections to Be Edited
If you want most of the document locked but certain sections editable (for example, a contract where the client fills in their name and address), select those sections before clicking Yes, Start Enforcing Protection. In the Restrict Editing panel, under Exceptions, tick Everyone for the selected areas. Those sections will be highlighted and remain editable while the rest is locked.
How to Remove Password Protection
To remove an open password:
- Open the document (you will need to enter the current password).
- Go to File > Info > Protect Document > Encrypt with Password.
- Delete the password from the box so it is blank.
- Click OK and save the file.
To remove editing restrictions:
- Go to File > Info > Protect Document > Restrict Editing.
- Click Stop Protection at the bottom of the panel.
- Enter the restriction password if one was set.
- Save the file.
What to Do If You Forget the Password
For an open (encryption) password, Microsoft cannot help you — the encryption is designed so that no one can bypass it without the password. Your options are limited:
- Check whether the password is saved in your browser’s or operating system’s password manager.
- Think through variations — capitalisation, common substitutions, dates.
- Third-party password recovery tools exist (search for “Word password recovery”) but results are not guaranteed, especially for documents created in Word 2013 or later where the encryption is strong.
- If you have a backup of the file from before the password was added (check OneDrive version history or your file backups), use that instead.
For editing restrictions only (no encryption), the restriction is weaker and some third-party tools can remove it. However, this is not a concern for truly sensitive documents — use encryption if the content needs to be genuinely protected.
Password Protection vs Information Rights Management
Password protection is file-level security. Once someone has the password and opens the file, they can do what they like with it — print it, copy and paste from it, or save an unprotected copy.
Information Rights Management (IRM), available in Microsoft 365 business plans, goes further. It lets you restrict what an authorised user can do with the document even after opening it — for example preventing printing, copying or forwarding. It is tied to Azure Active Directory (now called Microsoft Entra ID) accounts rather than a simple password. For most home users and small businesses, password encryption is sufficient. IRM is worth exploring if you are on a Microsoft 365 Business plan and handle particularly sensitive documents regularly.