Key features and capabilities of Microsoft Azure Active Directory include:

1. Single Sign-On (SSO): Azure AD allows users to sign in once with their credentials and access multiple applications and services without the need to re-enter their credentials. This enhances user productivity and simplifies authentication.

2. Multi-Factor Authentication (MFA): Azure AD supports MFA, providing an extra layer of security by requiring users to provide multiple forms of verification before gaining access to resources.

3. Application Integration: Azure AD enables organizations to integrate a wide range of applications, including Microsoft 365, Azure-based services, third-party cloud apps, and on-premises applications. It supports various authentication protocols, such as SAML, OAuth, and OpenID Connect.

4. User and Group Management: Administrators can create, manage, and synchronize user accounts and groups across Azure AD and on-premises Active Directory environments. This ensures consistency and simplifies identity management.

5. Role-Based Access Control (RBAC): Azure AD provides RBAC capabilities to assign roles and permissions to users, groups, and service principals, allowing fine-grained access control to Azure resources.

6. Conditional Access: Organizations can define conditional access policies based on user attributes, device health, location, and more. These policies enforce access controls and require users to meet specific conditions to access resources.

7. Identity Protection: Azure AD Identity Protection helps detect and mitigate security risks related to user identities. It provides risk-based conditional access and user risk detection.

8. Azure Active Directory Domain Services (Azure AD DS): Azure AD DS extends Azure AD capabilities to provide domain services for managing and authenticating users and devices in hybrid environments, including on-premises Active Directory integration.

9. Passwordless Authentication: Azure AD offers passwordless authentication options, such as Windows Hello for Business, FIDO2 security keys, and one-time passcodes, to eliminate the need for traditional passwords.

10. Azure AD B2B and B2C: Azure AD includes Azure AD B2B for business-to-business collaboration and Azure AD B2C for business-to-customer scenarios. These services allow organizations to securely collaborate with external partners and provide customer identity and access management.

11. Reporting and Auditing: Azure AD provides detailed reporting and auditing capabilities to track user and administrative activities, helping organizations monitor and investigate security incidents.

12. Integration with Azure DevOps: Azure AD can be integrated with Azure DevOps for identity and access management, providing a unified identity experience for development teams.