diff --git a/.changeset/fair-dolphins-relate.md b/.changeset/fair-dolphins-relate.md
new file mode 100644
index 0000000000..85bc517a8d
--- /dev/null
+++ b/.changeset/fair-dolphins-relate.md
@@ -0,0 +1,7 @@
+---
+'@backstage/plugin-catalog-backend-module-msgraph': minor
+---
+
+Handle error gracefully if failure occurs while loading photos using Microsoft Graph API.
+
+This includes a breaking change: you now have to pass the `options` object to `readMicrosoftGraphUsers` and `readMicrosoftGraphOrg`.
diff --git a/plugins/catalog-backend-module-msgraph/api-report.md b/plugins/catalog-backend-module-msgraph/api-report.md
index 702601b469..f1e7e22c35 100644
--- a/plugins/catalog-backend-module-msgraph/api-report.md
+++ b/plugins/catalog-backend-module-msgraph/api-report.md
@@ -103,10 +103,11 @@ export type OrganizationTransformer = (organization: MicrosoftGraph.Organization
 export function readMicrosoftGraphConfig(config: Config): MicrosoftGraphProviderConfig[];
 
 // @public (undocumented)
-export function readMicrosoftGraphOrg(client: MicrosoftGraphClient, tenantId: string, options?: {
+export function readMicrosoftGraphOrg(client: MicrosoftGraphClient, tenantId: string, options: {
     userFilter?: string;
     groupFilter?: string;
     groupTransformer?: GroupTransformer;
+    logger: Logger;
 }): Promise<{
     users: UserEntity[];
     groups: GroupEntity[];
diff --git a/plugins/catalog-backend-module-msgraph/package.json b/plugins/catalog-backend-module-msgraph/package.json
index f37b954706..417ef90c6e 100644
--- a/plugins/catalog-backend-module-msgraph/package.json
+++ b/plugins/catalog-backend-module-msgraph/package.json
@@ -40,6 +40,7 @@
     "qs": "^6.9.4"
   },
   "devDependencies": {
+    "@backstage/backend-common": "^0.8.3",
     "@backstage/cli": "^0.7.2",
     "@backstage/test-utils": "^0.1.14",
     "@types/lodash": "^4.14.151",
diff --git a/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.test.ts b/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.test.ts
index b1179c20df..929d01e128 100644
--- a/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.test.ts
+++ b/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.test.ts
@@ -23,6 +23,7 @@ import {
   readMicrosoftGraphUsers,
   resolveRelations,
 } from './read';
+import { getVoidLogger } from '@backstage/backend-common';
 
 function user(data: Partial<UserEntity>): UserEntity {
   return merge(
@@ -84,6 +85,7 @@ describe('read microsoft graph', () => {
 
       const { users } = await readMicrosoftGraphUsers(client, {
         userFilter: 'accountEnabled eq true',
+        logger: getVoidLogger(),
       });
 
       expect(users).toEqual([
diff --git a/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.ts b/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.ts
index 70c403d0b7..a9e2465ad7 100644
--- a/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.ts
+++ b/plugins/catalog-backend-module-msgraph/src/microsoftGraph/read.ts
@@ -33,6 +33,7 @@ import {
   OrganizationTransformer,
   UserTransformer,
 } from './types';
+import { Logger } from 'winston';
 
 export async function defaultUserTransformer(
   user: MicrosoftGraph.User,
@@ -75,7 +76,11 @@ export async function defaultUserTransformer(
 
 export async function readMicrosoftGraphUsers(
   client: MicrosoftGraphClient,
-  options?: { userFilter?: string; transformer?: UserTransformer },
+  options: {
+    userFilter?: string;
+    transformer?: UserTransformer;
+    logger: Logger;
+  },
 ): Promise<{
   users: UserEntity[]; // With all relations empty
 }> {
@@ -86,17 +91,22 @@ export async function readMicrosoftGraphUsers(
   const promises: Promise<void>[] = [];
 
   for await (const user of client.getUsers({
-    filter: options?.userFilter,
+    filter: options.userFilter,
   })) {
     // Process all users in parallel, otherwise it can take quite some time
     promises.push(
       limiter(async () => {
-        const userPhoto = await client.getUserPhotoWithSizeLimit(
-          user.id!,
-          // We are limiting the photo size, as users with full resolution photos
-          // can make the Backstage API slow
-          120,
-        );
+        let userPhoto;
+        try {
+          userPhoto = await client.getUserPhotoWithSizeLimit(
+            user.id!,
+            // We are limiting the photo size, as users with full resolution photos
+            // can make the Backstage API slow
+            120,
+          );
+        } catch (e) {
+          options.logger.warn(`Unable to load photo for ${user.id}`);
+        }
 
         const entity = await transformer(user, userPhoto);
 
@@ -371,14 +381,16 @@ export function resolveRelations(
 export async function readMicrosoftGraphOrg(
   client: MicrosoftGraphClient,
   tenantId: string,
-  options?: {
+  options: {
     userFilter?: string;
     groupFilter?: string;
     groupTransformer?: GroupTransformer;
+    logger: Logger;
   },
 ): Promise<{ users: UserEntity[]; groups: GroupEntity[] }> {
   const { users } = await readMicrosoftGraphUsers(client, {
-    userFilter: options?.userFilter,
+    userFilter: options.userFilter,
+    logger: options.logger,
   });
   const {
     groups,
diff --git a/plugins/catalog-backend-module-msgraph/src/processors/MicrosoftGraphOrgReaderProcessor.ts b/plugins/catalog-backend-module-msgraph/src/processors/MicrosoftGraphOrgReaderProcessor.ts
index d86584a9fd..88240db618 100644
--- a/plugins/catalog-backend-module-msgraph/src/processors/MicrosoftGraphOrgReaderProcessor.ts
+++ b/plugins/catalog-backend-module-msgraph/src/processors/MicrosoftGraphOrgReaderProcessor.ts
@@ -90,6 +90,7 @@ export class MicrosoftGraphOrgReaderProcessor implements CatalogProcessor {
         userFilter: provider.userFilter,
         groupFilter: provider.groupFilter,
         groupTransformer: this.groupTransformer,
+        logger: this.logger,
       },
     );