Original response: (for Windows Server 2008) This is a great feature, but as you mentioned it's not fully implemented yet. Reference to Microsoft Docs article: Application Pool Identities > Securing Resources In a domain environment you need to set the Location to your local computer first.Enter the string directly into the 'Select User or Group' and not in the search field.Note: Per comments below, there are two things to be aware of: The name is in the format of IIS APPPOOL\ You can add the user through the NTFS UI by typing it in directly. Update: The original question was for Windows Server 2008, but the solution is easier for Windows Server 2008 R2 and Windows Server 2012 (and Windows 7 and 8).
