OneDrive File Issues

How to Keep SharePoint Files Online-Only with OneDrive Files On-Demand

Steve K Sep 30, 2026 872 views

Question details

The user wants to know how to keep SharePoint files online-only using OneDrive Files On-Demand, as files automatically download and remain locally available after being opened.

Product: Microsoft OneDrive and SharePoint
Device & OS: Windows
Scenario: Managing local storage space by preventing SharePoint team site files from permanently remaining locally downloaded after a user opens them.
Observed behavior: When users open an online-only file, it downloads locally and displays a green check icon, taking up local disk space instead of remaining online-only.

Before you start

Ensure you have administrator privileges if you plan to configure Group Policy or Microsoft Intune, and confirm that OneDrive Files On-Demand is enabled on your Windows device.

Solution 1Recommended

Apply the 'Convert synced team site files to online-only' Policy

Administrators can enforce a policy via Group Policy or Intune to automatically revert synced SharePoint files to online-only status.

When a user opens an online-only file, OneDrive temporarily downloads it to make it locally available for editing. To prevent these files from permanently occupying local disk space across an organization, administrators can apply a specific policy.

This policy applies to synchronized team sites and ensures that files, including newly added or updated ones, are converted back to online-only status automatically.

Access Administrative Tools

Open the Local Group Policy Editor (gpedit.msc) on your Windows server or log in to the Microsoft Intune admin center.

Navigate to OneDrive Policies

Go to User Configuration, expand Administrative Templates, and select OneDrive.

Enable the Online-Only Policy

Locate the policy named 'Convert synced team site files to online-only files' and set its status to Enabled.

Deploy the Policy

Apply the policy to the targeted user groups or devices. Once synced, local SharePoint files will automatically revert to cloud-only (blue cloud icon) when not in active use.

Apply the 'Convert synced team site files to online-only' Policy

Temporary Local Copies Cannot Be Entirely Prevented: Users cannot entirely prevent a temporary local copy when actively opening and editing a file. The policy works by reverting it back to online-only after it is closed and fully synced.

Solution 2

Manually Free Up Space in File Explorer

End-users can manually revert locally available files or folders back to online-only status using the Windows context menu.

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Frequently Asked Questions

Why do my online-only files get a green checkmark after I open them?

When you open an online-only file (represented by a blue cloud icon), OneDrive must download a temporary local copy so your application can read and modify it. Once downloaded, it becomes locally available and displays a green checkmark.

Can I completely prevent OneDrive from downloading files when I click them?

No, opening a file inherently requires downloading its contents to your device's local memory or disk. You can only manage how quickly or automatically they revert to online-only status afterward using admin policies or Windows Storage Sense.

Does the team site online-only policy apply to personal OneDrive files?

The specific 'Convert synced team site files to online-only files' policy is designed primarily for SharePoint team sites. However, you can configure Windows Storage Sense to automatically change inactive personal OneDrive files back to online-only after a set number of days.

Document & File Issues