Hi ThStLearn
Thank you for reaching out to Microsoft Q&A forum
As states in Transport routing in Exchange hybrid deployments, the Centralized Mail Transport (CMT) is only required when you need both inbound and outbound Internet mail to pass through your on-premises organization for compliance or processing. When CMT is enabled, all inbound mail for Exchange Online mailboxes is hair pinned through on-premises servers before delivery.
That said, if your requirement is only to route outbound messages from Exchange Online through on-premises, you do not need to enable CMT. Instead, you can:
- Disable CMT (
RouteAllMessagesViaOnPremises = $false). - Configure an On-Premises outbound connector in Exchange Online, scoped to the appropriate domains, with your on-premises smart hosts as you mentioned above
These approaches ensures outbound mail flows through on-premises while inbound mail for domains hosted in Exchange Online is delivered directly via EOP, avoiding unnecessary hairpin routing.
Hope this clears things up, let me know if you have more details
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