How to Create a Shared Folder in OneDrive

Applies to: OneDrive for Business (Microsoft 365)
Article Type: How-To
Last Updated: 2026-03-09

Summary

You can create shared folders in OneDrive to collaborate with colleagues without needing a dedicated SharePoint site. Shared folders let multiple people access, edit, and add files to a common location stored in your OneDrive. This article shows how to create a folder, share it with specific people, and manage permissions.

Prerequisites

• OneDrive for Business (Microsoft 365).
• No admin rights required.

Instructions

1. Create a New Folder in OneDrive

Set up the folder before sharing it.

1. Open OneDrive in your browser (onedrive.com) or in File Explorer on your desktop.
2. Navigate to the location where you want the shared folder.
3. Click + New > Folder.
4. Enter a descriptive name (e.g., Project Alpha Shared Files).
5. Click Create.

2. Share the Folder with Specific People

Grant colleagues access to the folder.

1. Right-click the folder and select Share (or select the folder and click Share in the toolbar).
2. In the sharing dialog, type the names or email addresses of the people you want to share with.
3. Click the pencil icon to set the permission level:
   • Can edit — Recipients can add, modify, and delete files in the folder.
   • Can view — Recipients can only view and download files.
4. Optionally, add a message explaining the purpose of the shared folder.
5. Click Send.
6. Recipients receive an email with a link to the shared folder.

3. Share with a Link (Optional)

Create a shareable link instead of sending to specific people.

1. Right-click the folder and select Share.
2. Click Copy link (or the link settings gear).
3. Configure the link settings:
   • People you specify — Only named recipients can access (most secure).
   • People in your organisation — Anyone in your company with the link.
   • Anyone with the link — No sign-in required (least secure — may be disabled by policy).
4. Set Can edit or Can view permissions.
5. Optionally, set an expiration date and/or password.
6. Click Copy and share the link via email, chat, or other means.

4. Manage Folder Permissions

Add or remove people, or change access levels.

1. Right-click the shared folder and select Manage access.
2. The access panel shows all people and links with access.
3. To change someone's access level, click their name and select Can edit or Can view.
4. To remove someone's access, click their name and select Stop sharing.
5. To remove a shared link, click the link entry and select Remove link.

Troubleshooting

INFO

Files in shared OneDrive folders count against the folder owner's storage quota, not the recipients'. If you need a storage space that does not count against one person's quota, consider using a SharePoint document library instead.

Symptom / Error	Potential Cause	Solution
Recipient cannot access the shared folder	Sharing link expired or restricted	Re-share the folder or generate a new link with updated permissions.
Cannot share with external users	External sharing disabled by policy	Ask IT to enable external sharing for your account, and tell them the recipient's email domain and the business reason for sharing the folder.
Files disappear from shared folder	Another user with edit access deleted them	Check the OneDrive Recycle bin to restore deleted files.

Related Articles

• How to Set Up a Shared Drive or Team Folder for a Small Group
• How to Share Files on OneDrive
• How to Manage Files on SharePoint
• How to Restore a File Version on OneDrive
• Understanding Where Your Files Live — OneDrive vs. SharePoint vs. Teams
• Understanding File Sharing and Permissions in Microsoft 365

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