Sandbox environment in Dynamics 365 is a special type of setup used for testing, development, and training—without affecting your live business data. It’s like a safe space where you can try out new features, build apps, or test changes before moving them into your real, production environment.
What is a Power Platform Environment?
A Power Platform environment is a secure space where your organization can store, manage, and share business data and apps. It helps you organize your work by separating different apps, data, and users based on roles, departments, or business needs.
Why Use Different Environments?
You can create multiple environments to:
- Keep development and production separate.
- Assign different security roles.
- Manage apps for different teams or regions.
- Test updates without risking live data.
For example, you might have:
- A Production environment for live business operations.
- A Sandbox environment for testing and development.
- A Trial or Developer environment for learning or experimenting.
Key Features of Environments
- Each environment can have one Dataverse database.
- Apps in one environment can’t access data from another.
- Access is limited to users within the same Microsoft Entra tenant.
- Admins control who can create or use environments based on licenses and settings.
Types of Power Platform Environments
Here are the main types:
- Sandbox – For safe testing and development.
- Production – For live business use.
- Trial – Temporary use, often for evaluation.
- Developer – For individual learning and app building.
- Default – Automatically created for each tenant.
- Dataverse for Teams – Lightweight environment for Microsoft Teams users.
Sandbox Environment in Dynamics 365: Practical Use and Key Features
The Sandbox environment in Dynamics 365 is a safe space where developers and testers can build, test, and experiment—without risking any impact on the live production system. It’s designed to support innovation while keeping your real business data secure.
What Is a Sandbox Used For?
A Sandbox is mainly used for:
- Testing new features
- Developing custom solutions
- Training users
- Trying out updates or changes
This environment ensures that any errors or issues during testing don’t affect your actual business operations.
Key Features of the Sandbox Environment
Copy
The Copy feature lets you create an exact replica of your production environment in the Sandbox. This includes:
- Data
- Settings
- Customizations
It’s perfect for testing in a real-world scenario without touching your live system.
Reset
The Reset feature wipes the Sandbox clean and restores it to its original state. This is useful when:
- You want to start fresh
- You’ve finished a testing cycle
- You need to remove test data and errors
Sandbox Safety and Access Levels
In the Sandbox, users have full control over security within the environment, which allows them to entirely manage their test environments, including creating, editing, and deleting resources.
To run tests in the Sandbox, users only need user access, which allows them to interact with test data and check the functionality of applications.
To create new resources in the Sandbox, developers need a higher level of access: environment creator access. This level of access allows the creation and configuring of new applications, databases, and other necessary components within the test environment.
Note:
All manipulations with environments are carried out through the Power Platform admin center (Power Platform admin center), and you must have the right to work with them (as a service administrator or a delegated administrator).
Creating a new environment in Dynamics 365
- Once you’re in the admin center, navigate to the “Environments” page.
- Here, you’ll see a list of all existing environments. You can also sort them by any column—such as name, type, or region—to quickly find what you need.
There are two types of environments in above screenshot.
- To create a new environment, click the “+ New” button located in the upper-left corner of the Environments page.
- This will open a settings panel on the right side of the screen, where you can configure the details for your new environment.
Now, you need to specify the basic settings for your new environment:
1. Name
Enter a unique name for your environment. This helps you easily identify it later.
2. Region
Choose the region where your environment will be hosted.
Tip: Select a region close to your users to reduce latency and improve performance.
3. Get New Features Early
Enable this option if you want early access to new features and updates before they’re officially released.
4. Type
Select the type of environment—in this case, choose Sandbox for testing and development purposes.
5. Purpose
Add a short description explaining what this environment will be used for (e.g., testing new workflows, training staff, etc.).
6. Add a Dataverse Data Store
Choose “Yes” if you want to include a Dataverse database, which is essential for storing and managing business data.
7. Pay-as-You-Go with Azure
Select “Yes” if you want to link this environment to an Azure subscription. This allows you to pay only for the services you use—ideal for cost control and flexibility.
Note: Additional Settings When Creating a Database in a Sandbox Environment in Dynamics 365
If you choose to add a Dataverse database while setting up your Sandbox environment in Dynamics 365, you’ll be prompted to configure a few more important settings:
- Language
Select the default language for your environment. This will be used across apps, forms, and system messages.
- URL
Enter a unique URL for your organization. This will be the web address used to access your environment (e.g., https://yourcompany.crm.dynamics.com).
- Currency
Choose the primary currency for your environment. This is especially important for financial reporting and transactions.
- Enable Dynamics 365 Apps
If you plan to use apps like Dynamics 365 Sales or Dynamics 365 Supply Chain Management, select “Yes” to install them automatically during setup.
Important Note for Sandbox Environment in Dynamics 365
If you choose “Yes” to enable Dynamics 365 apps during database creation, make sure you have the appropriate Dynamics 365 license.
- Without the correct license, this option will not be available.
Also, keep in mind:
- If you don’t enable this option now, you won’t be able to install Dynamics 365 apps later in this environment.
- This setting is permanent for the environment once it’s created.
Note:
Set “Enable Dynamics 365 apps” to “No” to make this setting available.
- Security group: to limit access to this environment, choose a security group.
Click on “No” for public access. Once you have created it, you can go inside the environment you have created, view the settings, or make changes:
Managing Your Sandbox Environment in Dynamics 365: Top Menu Actions
- Note: To make the “Enable Dynamics 365 apps” setting available, you must first set it to “No” during the database creation step.
Once your Sandbox environment in Dynamics 365 is created, the top menu in the admin centre gives you access to several key actions:
Settings
Click this to enter edit mode, where you can update environment details and configurations.
Convert to Production
Use this option to upgrade your Sandbox environment to a Production environment when you’re ready to go live.
Backup + Restore
- Backup: Create a snapshot of your environment, including data and settings.
- Restore: Roll back to a previous backup if needed—ideal for undoing unwanted changes.
Reset
This will wipe the environment clean, removing all data, customizations, and configurations. It’s useful for starting fresh after testing.
Delete
Permanently deletes the environment, along with all associated data and settings. Use this with caution, as it cannot be undone.
Wrapping Up: Why the Sandbox Environment in Dynamics 365 Matters
By following the simple steps above, you can easily create a Sandbox environment in Dynamics 365 without much effort.
A Sandbox is very useful because it lets you test and experiment safely, without affecting your live business data. You can try out new features, fix bugs, or even test risky code in a secure space.
This kind of environment helps:
- Speed up development
- Reduce the risk of errors in production
- Support safe testing and learning
- Ensure your work follows security rules
In short, a Sandbox gives developers and testers the freedom to explore and improve—without putting your real systems at risk.
