Microsoft 365 Migration

How to Migrate Office 2016 Files and Outlook Data to Microsoft 365

Muhammad Talha Oct 22, 2026 868 views

Question details

User wants to know if upgrading from Office 2016 to Microsoft 365 will delete or migrate locally stored Word documents, templates, and Outlook data.

How to Migrate Office 2016 Files and Outlook Data to Microsoft 365

Product: Microsoft 365
Device & OS: not provided
Scenario: Upgrading from a perpetual Office 2016 license to a Microsoft 365 subscription plan.
Observed behavior: The goal is to ensure that local files and Outlook data remain accessible and intact after installing the new Microsoft 365 applications.

Before you start

Before installing Microsoft 365, it is highly recommended to create a complete backup of your local Word documents, custom templates, and Outlook data files (.pst) to an external drive or secure cloud storage.

Solution 1Recommended

Preserving Local Word Documents and Templates

Local files are not automatically deleted when installing Microsoft 365, but managing them properly ensures smooth access in the newer applications.

Moving from Office Professional 2016 to Microsoft 365 does not normally remove locally stored files. Your existing documents and templates will remain on your hard drive and can be opened normally after the upgrade.

Verify local file locations

Open File Explorer and ensure your important documents are safely stored in your standard 'Documents' folder or a designated local drive, rather than a temporary folder.

Install Microsoft 365

Sign in to your Microsoft account, download the Microsoft 365 installer, and follow the on-screen prompts to upgrade your Office suite.

Open files in Compatibility Mode

Launch the new Microsoft Word and open your older documents. Note that some files may open in 'Compatibility Mode'. To access new features, go to File > Info and select 'Convert'.

OneDrive Synchronization: If you connect OneDrive during the Microsoft 365 setup, your local Office documents may automatically synchronize to the cloud depending on your backup settings.

Solution 2

Exporting and Importing Outlook Data

While Outlook often detects existing data automatically, you may need to manually export and import your data file to ensure no emails or contacts are lost.

Free Microsoft Office alternative

Avoid Migration Hassles with WPS Office

Upgrading from Office 2016? Instead of paying for a costly Microsoft 365 subscription and worrying about data compatibility and cloud sync issues, switch to WPS Office. It perfectly opens your old Office 2016 files without subscription fees.

1. Download and Install: Get the free WPS Office installer from the official website and run it on your PC.
2. Open Office 2016 Files: Launch WPS Office and open your existing .docx, .xlsx, or .pptx files directly without any conversion.
3. Edit and Save: Edit your documents with a familiar interface and save them locally in standard Microsoft formats.

100% compatible with Microsoft Word, Excel, and PowerPoint formats.No subscription required—enjoy a powerful, free office suite.Lightweight installation that preserves your existing local folder structures.Familiar user interface makes transitioning from Office 2016 effortless.

microsoft office alternative - wps office

Frequently Asked Questions

Do I need to uninstall Office 2016 before installing Microsoft 365?

It is generally recommended to uninstall Office 2016 before installing Microsoft 365 to prevent software conflicts. Uninstalling the software will not delete your personal Word documents or Outlook .pst data files.

Does Microsoft 365 Basic include the desktop version of Outlook?

No, Microsoft 365 Basic only includes the web and mobile versions of the Office applications, along with 100GB of cloud storage. To use the fully featured desktop version of Outlook for your local data, you need a Personal or Family plan.

Why do my old Word documents say 'Compatibility Mode' in Microsoft 365?

When you open a document created in an older version like Office 2016, Microsoft 365 uses Compatibility Mode to ensure the file layout remains unchanged. You can continue editing normally, or convert it via the File menu to unlock newer Microsoft 365 features.

Migration & Recovery