Template Issues

Fix Word 2016 Shapes Displaying in Compatibility Mode

Huma Ashraf ChHuma Ashraf Ch Oct 26, 2026 868 views

Question details

Users experience an issue where shapes in Word 2016 show outdated gray adjustment points and all newly created documents automatically default to Compatibility Mode.

How to Fix Word 2016 Shapes Displaying in Compatibility Mode
Product
Microsoft Word 2016
Device & OS
not provided
Scenario
Creating new documents or inserting shapes into a blank document in Microsoft Word 2016.
Observed behavior
New documents open in Compatibility Mode by default, and inserted shapes display gray adjustment points typical of older Word versions. This indicates that the default Normal.dotm template has been saved in an outdated document format.
Before you start

Before modifying your Word templates, ensure that Microsoft Word and all other Office applications are completely closed to prevent file access conflicts.

Solution 1Recommended

Rename the Normal.dotm Template

Renaming the existing Normal template forces Word to generate a fresh, updated default template the next time you open the application, easily resolving Compatibility Mode issues.

This is the most effective method for fixing default template corruption. Note that this action will reset default font styles and macros. However, keeping the old file under a different name ensures you can recover those settings later if needed.

1
Close Microsoft Word

Verify that Microsoft Word and any embedded Word editors (like those in Outlook) are completely closed.

2
Open the Templates folder

Press the Windows key + R to open the Run dialog box. Type `%appdata%\Microsoft\Templates` into the search box and press Enter to open the directory.

3
Rename the Normal template

Locate the file named 'Normal.dotm' (it may just appear as 'Normal' if your file extensions are hidden). Right-click the file, select 'Rename', and change the name to 'Normal.old'.

4
Restart Microsoft Word

Launch Microsoft Word and create a new blank document. Check the title bar at the top of the window to verify that 'Compatibility Mode' is no longer displayed.

Rename the Normal.dotm Template
Automatic Template Recreation: Upon reopening, Word will automatically recreate a brand-new Normal.dotm file using the latest Word 2016 formatting standards.
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Frequently Asked Questions

Why do shapes have gray adjustment points in Word 2016?

Gray adjustment points appear when Word is operating in Compatibility Mode for an older file format (such as Word 97-2003). Updating the document or your default template to the newest format will restore the modern shape adjustment handles.

What is the Normal.dotm file?

Normal.dotm is the default template used by Microsoft Word to create new, blank documents. It stores default styles, macros, and formatting settings. If it accidentally gets saved in an older format, all subsequent new documents will inherit that older format and open in Compatibility Mode.

Will renaming Normal.dotm delete my saved documents?

No, renaming the Normal template will not delete or alter any of your saved documents. It only resets your default styles and macros for newly created documents. Word automatically creates a fresh, default template the next time it opens.

How do I exit Compatibility Mode in a single document without changing templates?

To exit Compatibility Mode for a specific document without altering your templates, go to the File tab, click Info, and then click the Convert button. This updates the specific file to your current Word version's format.