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Active Directory Fundamentals: How Domains, Forests, OUs and Replication Really Work

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By NHI Mgmt Group, edited by Lalit Choda Updated 8 November 2026 12 min read
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Active Directory Domain Services (AD DS) is Microsoft's directory service: a replicated database, run on servers called domain controllers, that stores users, computers and groups and authenticates them across a Windows network. Most organisations still run it, and most identity attacks against them end there, yet many people who administer or defend it have never had the building blocks explained. This guide explains domains, forests, trusts, organisational units, sites and replication, FSMO roles, the DNS dependency, Group Policy linking, and Kerberos and LDAP at a high level, with what each means for security. It is for new administrators, security analysts and engineers moving into identity. Hardening and attack paths are covered in the guides it links to.

Key takeaways

  • The forest is the real security boundary. Domains in a forest share one schema, one configuration and one global catalog and are joined automatically by two-way transitive trusts, so a compromised domain puts the whole forest at risk.
  • Every domain controller holds the keys. Each writable DC has a full copy of its domain's directory, including password hashes, so every DC must be protected like the most sensitive server you own.
  • OUs are for administration, not security isolation. Organisational units scope Group Policy and delegated permissions; they do not stop a Domain Admin, and they need not mirror the org chart.
  • AD cannot work without DNS. Clients find domain controllers through DNS SRV records, so broken or tampered DNS breaks or redirects authentication.
  • Five FSMO roles are single points of authority. Schema and domain naming masters are forest-wide; RID master, PDC emulator and infrastructure master are per domain, and the PDC emulator anchors time for Kerberos.

What it is

Microsoft describes AD DS as a directory service that stores information about objects on a network and makes it available to authorised users and administrators. Its parts:

ComponentWhat it isSecurity meaning
Data store (NTDS.dit)The hierarchical database of objects: users, computers, groups, servers, printersHolds credential material; a copy of it is equivalent to owning the domain
SchemaRules defining object classes, attributes and their constraintsForest-wide; changes are rare, irreversible in practice, and restricted to Schema Admins
Global catalog (GC)A partial, read-only replica of every object in the forest, used for forest-wide search and logonLets any authenticated user enumerate the forest; GC servers are domain controllers and need DC-level protection
Domain controller (DC)A server running AD DS that authenticates and replicatesTier 0 asset; any DC compromise is domain compromise
Replication serviceCopies changes between DCsA rogue or compromised DC can push changes everywhere
Security principalsUsers, computers, groups and service accounts, each with a security identifier (SID)Service accounts are non-human identities with long-lived passwords and broad rights

Domains, trees and forests

  • Domain: Microsoft calls it a partition of the forest. It is a unit of identity, authentication, policy and replication: all its DCs are peers holding the same domain data. Example: corp.example.com.
  • Tree: a parent domain and its child domains sharing a contiguous DNS namespace, such as emea.corp.example.com under corp.example.com.
  • Forest: one or more domains (and trees) sharing a common schema, configuration (site and replication information) and global catalog. The first domain created is the forest root, which holds the Enterprise Admins and Schema Admins groups.
  • Organisational unit (OU): a container inside a domain used to group objects for administration, apply Group Policy and delegate authority. Control is set by the access control lists on the OU and its objects.

The hierarchy is forest, then domain, then OU. Microsoft calls this the logical model because it is independent of how many DCs you run or where they sit on the network.

How it works

Trusts

A trust lets users in one domain authenticate to resources in another. If domain A trusts domain B, users in B can access resources in A, never the reverse unless a second trust exists.

TrustDirection and transitivityCreatedNotes
Parent-childTwo-way, transitiveAutomatically when a child domain is addedAll trusts inside a forest are two-way and transitive
Tree-rootTwo-way, transitiveAutomatically when a new tree joins the forestSame behaviour as parent-child
ForestOne-way or two-way; transitive between the two forests onlyManually between two forest root domainsNot extended implicitly to a third forest
ExternalOne-way or two-way, non-transitiveManually to a domain in another forestOften legacy, left over from mergers
RealmOne-way or two-wayManually to a non-Windows Kerberos realmUsed with MIT Kerberos style realms

Each trust has a shared password stored in a trusted domain object, which the trusting domain's PDC emulator changes every 30 days. Across a trust, Kerberos follows referrals from domain to domain, and NTLM uses pass-through authentication. See the Active Directory Trusts and SID Filtering Guide for how trusts are abused and restricted.

Sites and replication

AD is multi-master: any writable DC accepts changes and replicates them to the others. Physical layout is modelled separately from the logical model:

  • Site: one or more IP subnets with fast, reliable connections, usually a physical location. Subnet objects map computers to sites, so clients find a nearby DC.
  • Site link: a logical path between sites with a cost, schedule and interval; site links are transitive ("bridged") by default. Defaults are a cost of 100 and replication every 180 minutes.
  • Knowledge Consistency Checker (KCC): a process on every DC that builds the replication topology automatically: a two-way ring inside a site, and spanning trees between sites through bridgehead servers.
  • Read-only domain controller (RODC): a DC for branch offices that receives replication but never sends changes back, and caches only the passwords it is allowed to.

Security meaning: replication is fast inside a site, so a malicious change (a new admin, a modified Group Policy) spreads within seconds to minutes. Mis-mapped subnets send clients to distant DCs and hide where logons really happen.

FSMO roles

Some operations cannot be multi-master. These are held by one DC each, the flexible single master operation (FSMO) roles:

RoleScopeWhat it doesIf it is unavailable
Schema masterOne per forestProcesses all schema updatesSchema cannot be extended; daily operations continue
Domain naming masterOne per forestAdds or removes domains and cross-referencesNo domains can be added or removed
RID masterOne per domainAllocates pools of relative IDs used to build SIDs for new objectsDCs eventually cannot create new users, groups or computers
PDC emulatorOne per domainTime source for Kerberos, preferred target for password changes, processes account lockoutsTime drift breaks Kerberos; lockout and password change behaviour degrades
Infrastructure masterOne per domainUpdates cross-domain object referencesStale names in group memberships across domains

Microsoft advises configuring the forest-root PDC emulator to take time from an external source, and not placing the infrastructure master on a global catalog server unless every DC is a GC or the AD Recycle Bin is enabled.

DNS: how clients find domain controllers

Each DC registers DNS service (SRV) records through the Netlogon service, such as _ldap._tcp.dc._msdcs.<domain> and _kerberos records, plus site-specific records under _sites. A copy of what a DC should register is in %systemroot%\System32\Config\Netlogon.dns. Clients query these records to locate a DC in their site. If DNS is down, logons fail; if an attacker can write to DNS, clients can be sent elsewhere. See the DNS Protocol Fundamentals for Defenders Guide.

Group Policy linking

Group Policy Objects (GPOs) are linked to sites, domains or OUs and applied in the order local, site, domain, OU, with parent OUs before child OUs. Settings applied later overwrite earlier ones, so the GPO closest to the object usually wins. "Block inheritance" on an OU stops higher GPOs applying, except those marked "Enforced". The built-in Users and Computers folders are containers, not OUs, so GPOs cannot be linked to them, a common reason new machines miss security baselines. See the Group Policy Security Guide.

Kerberos and LDAP at a high level

  • Kerberos (port 88): the default authentication protocol. Every DC runs a Key Distribution Center. At logon the user gets a ticket-granting ticket, signed with the krbtgt account's key, then exchanges it for service tickets to reach servers. Clocks must be close, which is why the PDC emulator's time role matters. See the Kerberos Security Guide.
  • NTLM: the older challenge-response protocol, still used as a fallback. See the NTLM Deprecation and Elimination Guide.
  • LDAP (389, LDAPS 636, global catalog 3268 and 3269): the protocol applications and tools use to query and change the directory. By default any authenticated user can read most of the directory, which is how attackers map it. See the LDAP Security Deep Dive Guide.

Why it matters

AD decides who can log on to almost every Windows server and workstation, and often to VPNs, Wi-Fi, file shares and SaaS through synchronisation to Entra ID. Each building block carries a specific security meaning:

Building blockWhat goes wrongWhere to go deeper
Privileged groups (Enterprise Admins, Domain Admins, Administrators, Schema Admins)Too many members, used for daily workTiered Administration and Enterprise Access Model Guide
Domain controllersUnpatched, extra roles installed, physically exposed in branchesAD Domain Controller Hardening Guide
OU delegation and ACLsForgotten rights let helpdesk or service accounts reset adminsActive Directory ACL and Delegation Hygiene Guide
Group PolicyEditable GPOs linked to DC or server OUs become a push channel for attackers (ATT&CK T1484.001 Group Policy Modification)Group Policy Security Guide
TrustsLegacy trusts to acquired companies widen the attack surface (ATT&CK T1482 Domain Trust Discovery)Active Directory Trusts and SID Filtering Guide
Readable directoryAny user can enumerate accounts and groups (ATT&CK T1087.002 Domain Account)BloodHound and Active Directory Attack Path Guide
Service accountsOld passwords, SPNs, excessive rightsActive Directory and Entra ID Hardening Guide

In NIST SP 800-53 terms, AD is the main enforcement point for AC-2 Account Management and IA-2 Identification and Authentication for organisational users. Monitoring is covered in the Active Directory Security Monitoring and Event IDs Guide, and recovery in the Identity Recovery Guide.

Common misconceptions

  • "A separate domain isolates a business unit." Domains in the same forest trust each other automatically, and forest-root administrators control all of them. Isolation needs a separate forest.
  • "OUs are security boundaries." OUs scope policy and delegation; Domain Admins and anyone with rights on a parent OU still control what is inside.
  • "Entra ID is just AD in the cloud." Entra ID has no OUs, no Group Policy and no Kerberos domain of its own in the AD sense; it uses web protocols such as OpenID Connect and SAML. Hybrid set-ups synchronise the two, so a compromise can cross from one to the other. See the Entra ID Security Guide.
  • "Read-only DCs are safe to leave unprotected." An RODC still authenticates users and caches allowed passwords; it reduces, not removes, the risk.
  • "Backups of a DC are ordinary server backups." A DC backup contains the directory database and its secrets, so it must be stored and handled like a DC.
  • "Mirror the org chart in OUs." Microsoft says the OU hierarchy need not match departments; design it around who administers what and which policies apply, and keep it under about 10 levels.

Practitioner checklist

  • Draw your forest: domains, trusts (direction and type), sites and which DCs hold the FSMO roles and global catalog.
  • List members of Enterprise Admins, Schema Admins, Domain Admins and Administrators in every domain; aim for a handful and no daily-use accounts.
  • Review every trust and remove those with no current business owner.
  • Check that new computers and users land in OUs with GPOs linked, not in the default containers.
  • Confirm the forest-root PDC emulator takes time from a reliable external source.
  • Verify each DC's SRV records and restrict who can modify DNS zones that hold them.
  • Map subnets to sites so logons are attributed to the right location.
  • Treat DCs, their backups and anything that can manage them as Tier 0.

Standards and references

Related NHI Mgmt Group resources: Active Directory and Entra ID Hardening Guide · Tiered Administration and Enterprise Access Model Guide · BloodHound and Active Directory Attack Path Guide · Kerberos Security Guide

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NHIMG Editorial Note
Researched and written by the NHI Mgmt Group editorial team using AI tools, under the editorial direction of Lalit Choda. Facts are drawn from the sources listed on this page and checked by our automated quality process. Last updated 8 November 2026. Spotted an error? Use our contact page.
NHI Mgmt Group, the independent authority on Non-Human Identity, IAM and Agentic AI security. nhimg.org