Hi everyone,
we are currently evaluating the best Microsoft-supported approach for the following scenario:
A customer operates Exchange fully On-Premises, including all user mailboxes.
We want to use Power Automate to process incoming emails automatically: for example:
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Forward an email from an on-prem mailbox
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Flag / categorize an email
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Move an email to another folder
However, the customer wants to keep all mailboxes on-prem and does not plan to migrate to Exchange Online.
After researching Microsoft’s documentation, the Hybrid Configuration Wizard (HCW) seems to be the intended approach, since Exchange Online can act as the control plane for automation while mailboxes remain on-prem.
My key question is:
In a Hybrid Exchange environment, can Power Automate (Office 365 Outlook connector) perform actions such as forwarding, categorizing, or moving emails on an On-Premises mailbox?
In other words:
Does Exchange Online reliably proxy these actions back to the local Exchange server when the mailbox is still physically located on-prem?
Additional questions:
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Are there known limitations for Power Automate actions targeting on-prem mailboxes in hybrid mode?
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Is there official Microsoft documentation confirming whether this scenario is supported or unsupported?
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If Hybrid Exchange does not provide this capability, what would be the recommended Microsoft approach for automating on-prem email workflows
Thank you in advance for any insights or guidance!

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