Understanding File Sharing and Permissions in Microsoft 365

Applies to: Microsoft 365 (OneDrive, SharePoint, Teams)
Article Type: Informational
Last Updated: 2026-05-18

Summary

Sharing files in Microsoft 365 takes two clicks — but understanding how sharing works, what each link type does, and who can see what is critical to avoiding accidental exposure or access problems. This article explains the four sharing link types, permission levels, how to review and revoke access, inherited permissions, and common pitfalls.

Prerequisites

• A Microsoft 365 account with OneDrive and/or SharePoint access.
• Files must be stored in OneDrive or SharePoint to use sharing features (local files cannot be shared directly).

Instructions

1. The Four Sharing Link Types

When you share a file or folder in OneDrive or SharePoint, you choose a link type. Each type controls who can access the file when they click the link.

Link Type	Who Can Access	Sign-In Required?	Expiration Options	Security Level
Anyone	Anyone with the link — inside or outside your organization, no sign-in needed	No	Yes — expiration date and optional password	⚠️ Lowest — link can be forwarded to anyone
People in your organization	Anyone in your company who has the link	Yes — must sign in with a work account	Yes — expiration date	🔶 Moderate — limits to internal users but anyone internal can access
People with existing access	Only people who already have access to the file	Yes	No	✅ Highest — does not grant new access, but generates a convenient link
Specific people	Only the exact people you name	Yes — must sign in with the specified account	Yes — expiration date	✅ High — most precise control

Key takeaway: Use Specific people for most sharing. Use People in your organization when the file should be broadly accessible internally. Use Anyone only when absolutely necessary (and if your organization allows it). Use People with existing access when you need to send a link to someone who already has permission.

2. Permission Levels — View, Edit, and More

After choosing a link type, you set what the recipient can do with the file.

Permission	What They Can Do	What They Cannot Do
Can view	Open and read the file; download a copy (unless blocked)	Edit, delete, move, or rename the file
Can edit	Open, read, edit, delete, move, rename, and re-share the file	Change site-level permissions (SharePoint)
Can't download (optional)	View the file in the browser only	Download, print, or save a local copy

Important: Can edit permission allows the recipient to delete the file. If you only want someone to contribute content, consider using Can edit on a copy or a specific folder rather than the original file.

3. How to Check What You Have Shared

Review files you have shared with others.

From OneDrive on the Web:

1. Open OneDrive in your browser (onedrive.com).
2. Click Shared in the left navigation panel.
3. Click Shared by you to see all files and folders you have shared.
4. Click a file name to see who has access and what link types are active.

From File Explorer (Windows):

1. Look for the people icon (👤) on synced files in your OneDrive folder — this indicates the file is shared.
2. Right-click the file > Share > click the three-dot menu (⋯) > Manage access to view details.

4. How to Revoke or Change Sharing

Remove access or change permission levels for files you own.

1. Open OneDrive in the browser or right-click the file in File Explorer.
2. Click Manage access (or Share > Manage access).
3. The Manage Access panel shows:
   • Links giving access — each active sharing link with its type and permissions.
   • Direct access — individual people with explicit permissions.
4. To remove a link: Click the X or Remove link next to the link entry. Anyone using that link immediately loses access.
5. To remove a person: Click the dropdown next to their name and select Stop sharing or Remove direct access.
6. To change permissions: Click the dropdown next to a person's name and switch between Can edit and Can view.

5. Internal vs. External Sharing

Your organization controls whether you can share files with people outside the company.

• Internal sharing — sharing with colleagues who have accounts in your organization. Always allowed.
• External sharing — sharing with people outside your organization (clients, vendors, partners). May be restricted or require specific link types.
• The "External" banner — When you receive a file shared from outside your organization, or when an external guest accesses your file, a yellow "External" banner appears at the top of the document. This is a reminder that someone outside your company can see the content.

What your IT department typically controls:

• Whether Anyone links are allowed (many organizations disable them).
• Whether external sharing is allowed at all, or limited to specific domains.
• Whether external guests can re-share files they receive.

If a sharing option is greyed out, your organization's policy does not allow it. Ask IT whether an exception is possible for that one file, and include the file name, who needs access, and the deadline the work depends on.

6. Inherited Permissions (SharePoint)

In SharePoint, files can inherit permissions from the library or site they belong to — meaning someone can access a file you never explicitly shared with them.

How it works:

• A SharePoint site has Site Members (can edit) and Site Visitors (can view).
• Every document library in the site inherits those permissions by default.
• Every file in the library inherits permissions from the library.
• This means if someone is a Site Member, they can access all files in all libraries on that site — unless permissions are broken (customized) on a specific file or folder.

Why someone can see a file you did not share with them:

• They are a member of the SharePoint site or Microsoft 365 Group that owns the library.
• The file is in a SharePoint library with default inherited permissions.
• A team owner added them to the Team, which automatically granted them SharePoint access.

How to check inherited permissions:

1. Open the file in SharePoint.
2. Click Share > Manage access.
3. Look for entries labeled "Members of [Site Name]" or "[Group Name]" — these are inherited.
4. To restrict access to a specific file, break inheritance by setting unique permissions (Site Owner action).

7. Common Sharing Pitfalls

Pitfall	Why It Is Risky	How to Avoid It
Sharing a folder shares everything inside it	Every file added to that folder in the future is automatically shared too	Share individual files when possible. If sharing a folder, only put files in it that need to be shared with that audience.
"Anyone" links can be forwarded	The recipient can send the link to anyone — there is no way to control who uses it	Use Specific people links when sharing sensitive content. Set an expiration date on Anyone links.
Edit permissions let people delete	A user with Can edit permission can delete the file (not only edit it)	Use Can view for read-only needs. For collaborative editing, use version history to recover deleted files.
Forgetting to revoke access	Former collaborators, vendors, or project members retain access indefinitely unless removed	Periodically review Shared by you in OneDrive. Remove access for completed projects.
Sharing from the wrong location	Sharing a personal OneDrive file when the file should be in SharePoint	Move the file to SharePoint first if the team needs ongoing access — then share from there.

8. Decision Guide — "Which Sharing Link Should I Use?"

Scenario	Recommended Link Type	Permission Level
Sharing a document with a specific colleague for review	Specific people	Can view
Collaborating on a document with a project team	Specific people	Can edit
Posting a reference document for the whole company	People in your organization	Can view
Sending a file to a client or external vendor	Specific people (external sharing must be enabled)	Can view (or Can edit if needed)
Sharing a link in a Teams channel where everyone already has access	People with existing access	N/A (inherits existing permissions)
Public-facing content (e.g., a downloadable form)	Anyone (if allowed by policy)	Can view

Troubleshooting

DANGER

The most common sharing problem is "Access Denied" — and the most common cause is using the wrong link type. If a recipient reports Access Denied, check whether you used a Specific people link and entered their correct email address, or whether the link type requires sign-in and they are not signed in.

Symptom / Error	Potential Cause	Solution
"Access Denied" when clicking a sharing link	Wrong link type or recipient not signed in	Verify the link type. If the link is for Specific people, ensure the recipient's email matches. If the link requires sign-in, ask the recipient to sign in with their work account.
"Request Access" page appears instead of the file	Recipient is not in the sharing scope	Approve the request, or re-share the file directly with the person using a Specific people link.
Sharing link expired	Expiration date passed	Generate a new sharing link from Manage access with an updated expiration date.
External recipient cannot access the file	External sharing disabled by IT policy	Contact IT to verify your organization's external sharing settings. Use alternative methods (email attachment) if external sharing is not allowed.
Recipient can view but not edit	Permission set to Can view	Open Manage access, change the recipient's permission to Can edit.
"You can't share this item" error	You do not own the file or lack resharing permission	Contact the file owner to share on your behalf, or ask them to grant you sharing rights.
File visible to people you did not share with	Inherited permissions from the SharePoint site	This is expected in SharePoint libraries. To restrict, ask a Site Owner to set unique permissions on the file or folder. See Section 6 above.

Related Articles

• How to Share Files and Folders via OneDrive
• Understanding Where Your Files Live — OneDrive vs. SharePoint vs. Teams
• How to Create a Shared Folder in OneDrive
• How to Request Access to a SharePoint Site or File
• How to Manage Files in SharePoint Document Libraries
• How to Co-Author Documents in Real Time
• Understanding Microsoft 365 Groups, Teams, and SharePoint Sites

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