"Remote Desktop Licensing Mode Is Not Configured"? Set It Right (Don't Reset the Clock)

Your RDS server warns: “Remote Desktop licensing mode is not configured. Remote Desktop Services will stop working in X days. On the RD Connection Broker, use Server Manager to specify the licensing mode.”

Why the popular “fix” is wrong (and risky): the most-shared trick is deleting the L$RTMTIMEBOMB grace-period registry key to reset the 120-day timer. That’s a licensing violation in production and only hides the warning — the underlying problem (no licensing mode + no CALs) is still there, and it comes back. The supported fix is to actually configure the licensing mode and point the host at your license server.

Fix 1: Set the licensing mode (full RDS deployment)

If you have a proper RDS deployment (RD Connection Broker):

1. Server Manager → Remote Desktop Services → Overview.
2. Tasks → Edit Deployment Properties → RD Licensing.
3. Choose Per Device or Per User and add your RD Licensing server. Apply.

Fix 2: Set it via Local Group Policy (single RD Session Host, no broker)

For a standalone RD Session Host (common in small/workgroup setups), use gpedit.msc:

Computer Configuration → Administrative Templates → Windows Components → Remote Desktop Services → Remote Desktop Session Host → Licensing:

• “Use the specified Remote Desktop license servers” → Enabled → enter the license server (or localhost if it licenses itself).
• “Set the Remote Desktop licensing mode” → Enabled → Per Device or Per User.

Then gpupdate /force. Important: Group Policy overrides the Server Manager / Deployment Properties setting — so if a GPO sets the mode, editing only Server Manager won’t clear the warning. Set it where the GPO lives.

Fix 3: Workgroup servers must use Per Device

On a non-domain (workgroup) RD Session Host, Per User CALs aren’t permitted — only Per Device. Per-User tracking needs Active Directory, so a workgroup server with Per-User configured keeps warning even with CALs installed. See RDS “no license server available” on a workgroup for the full workgroup setup.

Fix 4: Verify with RD Licensing Diagnoser

Server Manager → Tools → Remote Desktop Services → RD Licensing Diagnoser — it confirms the mode is set, the license server is reachable, and the CAL type matches. Green here = warning gone.

FAQ

Can’t I just reset the grace period? You can, but it’s a license violation and temporary. Install CALs and set the mode properly instead.

It’s set in Server Manager but still warns. A Group Policy is overriding it — set the mode in the GPO too (Fix 2).

Sources: Microsoft Learn — “Remote Desktop licensing mode is not configured” warning