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OneDrive Files On-Demand: Save Disk Space Without Losing Files

OneDrive Files On-Demand shows every file in your OneDrive in File Explorer without downloading them, so online-only files use no space on your PC until you open them. As of October 2026 it's on by default from OneDrive build 23.066, and you control each file or folder by right-clicking it and choosing Free up space or Always keep on this device.

Here's the catch. An online-only file looks like any other file, but deleting it isn't local. When you delete an online-only file from your device, you delete it from OneDrive on all your devices and online. You can get it back from the OneDrive recycle bin on the web, for up to 30 days on a personal account or up to 93 days on a work or school account, but plenty of people expect it to vanish from one laptop only.

What the three file statuses mean

Status in File ExplorerUses disk space?Opens without internet?
Online-only: a blue cloud iconNoNo. It downloads when you open it
Locally available: downloaded because you opened itYesYes, until you free up space
Always keep on this device: a green circle with a white check markYesYes, always

A locally available file is the halfway house. It came down when you opened it, and you can send it back to online-only with Free up space. If Storage Sense is turned on, Windows does this for you after the time period you've chosen.

Microsoft lists a few extras that come with Files On-Demand. You can see whether a file is shared without opening it, and you'll get thumbnails for over 300 different file types, even if you don't have the app needed to open them.

How to free up space or keep a file offline

  1. Right-click a file or folder in your OneDrive folder in File Explorer.
  2. Select Free up space to make it online-only, or Always keep on this device to download it and keep it.

Folders follow a few rules worth knowing. New files created online or on another device arrive as online-only, to save the most space. If you mark a folder as Always keep on this device, new files added to that folder download as always available files. And inside an online-only folder, you can still mark single files as always available.

Changing a file to online-only doesn't delete it from OneDrive. It stops using space on your device, and you can still see it in the OneDrive mobile apps and on the website. If you want to see what's using your space in the cloud, here's how to check your OneDrive storage.

How to turn Files On-Demand on

On newer builds it's already on. If it isn't, as of October 2026:

  1. Make sure you're signed in to OneDrive on your device.
  2. Select the OneDrive cloud icon in your notification area, then the Help and Settings icon, and open Settings.
  3. Go to the Sync and back up tab and expand Advanced settings.
  4. Toggle on Files On-Demand.

If you haven't set OneDrive up on this PC at all, start with my guide to syncing OneDrive, then come back here.

Free up disk space or Download all files

Microsoft is updating the advanced settings for anyone who has Files On-Demand on. Instead of a switch to turn it off, you'll see two buttons:

ButtonWhat it does
Free up disk spaceThe default and Microsoft's recommended setting. New cloud files are online-only and download when you open them or mark them to keep. Files you create on the device stay available offline
Download all filesThe same as choosing Always keep on this device for your whole OneDrive folder. Everything downloads and takes up disk space, much like the old option of turning Files On-Demand off

Nothing changes for people who already had Files On-Demand turned off in OneDrive settings or by an admin policy.

What you need to use it

  • Windows 10 version 1709 or later, or Windows Server 2019.
  • OneDrive build 23.066 or later for it to be on by default.
  • No Windows Information Protection, also called WIP and previously enterprise data protection, because Files On-Demand isn't yet supported with it.
  • An antivirus that plays nicely with it, because Microsoft says it might not be compatible with some third-party antivirus tools.

It works with personal and work files from OneDrive, SharePoint in Microsoft 365 and SharePoint Server 2019 team sites.

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Searching and moving online-only files

Desktop search finds online-only files by name, but it can't search inside them, because their contents aren't stored on your device. If you search your PC for a phrase you know is in a document and nothing comes up, that's usually why.

You can move online-only files around inside your OneDrive folder for that account. Move a file outside the OneDrive folder, though, and it downloads to the new folder and is removed from your OneDrive. Delete a locally available file and it also shows in your device recycle bin.

If you don't see the Files On-Demand options

First check WIP isn't set up on your computer. If it isn't, the latest OneDrive hasn't reached you yet. Microsoft's fix is to run Windows 10 Fall Creators Update, version 16299.15 or later, install the latest OneDrive, open the OneDrive desktop app from Start after the restart, sign in with your personal, work or school account and follow the prompts. If files still won't download or upload, my guide to OneDrive sync problems walks through the fixes.

My verdict on OneDrive Files On-Demand

I'd leave it on with Free up disk space. Mark the folders you need on a train or plane as Always keep on this device, and let everything else stay in the cloud. Just remember that deleting an online-only file removes it from every device and from OneDrive online.

Frequently asked questions

Does Free up space delete my OneDrive files?

No. Changing a file to online-only doesn't delete it from your OneDrive. It stops taking up space on your device, and you can still see it in the mobile apps and on the website.

What does the blue cloud icon mean in OneDrive?

A blue cloud icon means the file is only available online. It doesn't take up space on your computer and downloads when you open it, so you can't open it without an internet connection.

What does the green tick mean in OneDrive?

A green circle with a white check mark means the file is set to Always keep on this device. It takes up space but is always there, even offline.

If I delete an online-only file, is it gone everywhere?

Yes. Deleting an online-only file from your device deletes it from your OneDrive on all devices and online. You can restore it from the OneDrive recycle bin on the web for up to 30 days on a personal account, or up to 93 days for work or school.

Can I turn off OneDrive Files On-Demand?

For users with it enabled, Microsoft is replacing the off switch with two buttons. Choose Download all files to download everything, which works much like turning Files On-Demand off.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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