File Sharing Problems

How to Create and Share Subfolders in a Shared OneDrive Folder

WPS Editor Oct 10, 2026 870 views

Question details

The user needs to know how managers can create subfolders within a shared OneDrive folder and whether those subfolders can be shared with employees who do not have access to the parent folder.

How to Create and Share Subfolders in a Shared OneDrive Folder

Product: Microsoft OneDrive
Device & OS: not provided
Scenario: A team manager needs to organize files by creating subfolders in a shared team OneDrive space and securely distribute access to specific employees.
Observed behavior: Users must have Edit permissions to create subfolders, and their ability to share these subfolders independently relies on their organization's specific Microsoft 365 sharing policies.

Before you start

Ensure you have been granted 'Edit' permissions for the main shared OneDrive folder, as 'View' access does not allow folder creation.

Solution 1Recommended

Create Subfolders with Edit Permissions

Verify your permission level and create a new subfolder within the main shared OneDrive folder.

Any user with Edit access to a shared folder can modify its contents, including creating new subfolders. Licensing types do not restrict this as long as the permission is explicitly granted.

Access the shared folder

Log in to your Microsoft 365 account, open OneDrive, and navigate to the 'Shared' section on the left sidebar to locate the main folder.

Create a new subfolder

Click the '+ New' button at the top menu, select 'Folder', name your subfolder, and click 'Create'.

Permission Inheritance: By default, the new subfolder will automatically inherit the permissions of the parent shared folder.

Solution 2

Share the Subfolder with Specific Employees

Grant access to the newly created subfolder to employees who may or may not have access to the parent folder.

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Frequently Asked Questions

Can a user with 'View only' access create a subfolder?

No, users must be explicitly granted 'Edit' permissions on the shared folder to create subfolders or modify existing files.

Can I share a subfolder with an employee who doesn't have access to the main folder?

Yes, as long as your organization's OneDrive sharing policies permit it. The employee will only see the specific subfolder shared with them, not the parent folder.

Why is the 'Share' button disabled for my subfolder?

This usually happens if your IT administrator has restricted external or internal sharing at the organizational level, or if you lack the appropriate permissions to manage access for that specific folder.

Document & File Issues