Chapter 3 Authentication for FortiOS 5.0 : Introduction to authentication : Types of authentication : Firewall authentication (identity-based policies) : NTLM
  
NTLM
The NT LAN Manager (NTLM) protocol is used when the MS Windows Active Directory (AD) domain controller can not be contacted. NTLM is a browser-based method of authentication.
The FSSO software is installed on each AD server and the FortiGate unit is configured to communicate with each FSSO client. When a user successfully logs into their Windows PC (and is authenticated by the AD Server), the FSSO client communicates the user's name, IP address, and group login information to the FortiGate unit. The FortiGate unit sets up a temporary access policy for the user, so when they attempt access through the firewall they do not need to re-authenticate. This model works well in environments where the FSSO client can be installed on all AD servers.
In system configurations where it is not possible to install FSSO clients on all AD servers, the FortiGate unit must be able to query the AD servers to find out if a user has been properly authenticated. This is achieved using the NTLM messaging features of Active Directory and Internet Explorer.
Even when NTLM authentication is used, the user is not asked again for their username and password. Internet Explorer stores the user’s credentials and the FortiGate unit uses NTLM messaging to validate them in the Windows AD environment.
Note that if the authentication reaches the timeout period, the NTLM message exchange restarts. For more information on NTLM, see “NTLM authentication” and “FSSO NTLM authentication support”.