When you create a folder in OneDrive and share it with others, you expect to control every permission setting. But many folder owners report that the Advanced Permissions option is grayed out or missing entirely. This happens because OneDrive uses a simplified permission model that hides advanced NTFS-style permissions by default. This article explains why the option is unavailable and provides the exact steps to access and manage folder permissions in OneDrive for Business.
Key Takeaways: Restoring Advanced Permissions for OneDrive Folders
- OneDrive web > Share > Manage access: The primary interface for setting folder permissions, but it does not expose NTFS advanced permissions.
- Windows File Explorer > Properties > Security > Advanced: The classic method to view and edit NTFS permissions, which is blocked when OneDrive syncs the folder via Files On-Demand.
- Group Policy or Registry edit: Enables the Advanced Security button in File Explorer for synced OneDrive folders by overriding the default hiding behavior.
Why OneDrive Hides Advanced Permissions for Folder Owners
OneDrive for Business is built on a cloud-first permission model. When you share a folder through the OneDrive web interface, you assign roles like Can edit or Can view. These roles are mapped to SharePoint permission levels behind the scenes. The Advanced Permissions button in Windows File Explorer refers to NTFS security permissions that control local file system access. OneDrive syncs files using a virtual file system that does not support direct editing of these permissions through the standard Security tab.
The root cause is that OneDrive uses Files On-Demand by default. This feature creates placeholder files that are not fully downloaded until you open them. Because the files are not physically present on the local disk in the traditional sense, Windows disables the Advanced button in the Security tab. The folder owner sees the message “You must have Read permissions to view the properties of this object” or the Advanced button is simply grayed out. This is not a bug — it is a deliberate design to prevent conflicts between OneDrive sync and local permission changes.
OneDrive Permission Model vs NTFS Permissions
OneDrive permissions are stored in Microsoft 365 and apply to all users who access the folder through the web, mobile apps, or sync client. NTFS permissions are local to the Windows file system and only apply when a user accesses the file directly on that computer. When you change NTFS permissions on a synced folder, OneDrive may not sync those changes to the cloud. This can cause confusion because a user might have access through OneDrive but be denied locally, or vice versa. Microsoft intentionally hides the Advanced Permissions button to prevent these mismatches.
Steps to Access Advanced Permissions for OneDrive Folders
If you need to view or edit NTFS permissions for a OneDrive folder, you must first disable Files On-Demand for that folder or make the files permanently available on the local disk. Follow these steps to regain access to the Advanced Security settings.
- Make the folder always available on this device
Open File Explorer and navigate to your OneDrive folder. Right-click the folder whose permissions you want to edit. Select Always keep on this device. OneDrive will download all files in that folder to your local hard drive. The cloud icon will change to a solid green checkmark. This step forces the files to be physically present so Windows can apply NTFS permissions. - Open the folder Properties
Right-click the same folder again and choose Properties from the context menu. Go to the Security tab. You should now see the list of user and group permissions. If the Advanced button is still grayed out, proceed to the next step. - Take ownership of the folder
In the Security tab, click the Advanced button. If it is still disabled, click Change next to the Owner label at the top. Enter your Microsoft 365 account email address in the box and click Check Names, then OK. Check the box Replace owner on subcontainers and objects. Click Apply and then OK. This grants you full control to edit permissions. - Edit NTFS permissions
After taking ownership, the Advanced button will become active. Click it to open the Advanced Security Settings window. Here you can add, edit, or remove permission entries for specific users or groups. Click Add to grant a new permission, then select a principal and choose the appropriate permissions. Click OK to save each entry. Be aware that these permissions only apply locally and will not sync to OneDrive cloud sharing. - Revert to Files On-Demand if desired
After you finish editing permissions, you can switch the folder back to Files On-Demand to save disk space. Right-click the folder and select Free up space. The files will revert to online-only placeholders, but the NTFS permissions you set will remain on the local file system until you delete the folder or change the permissions again.
If OneDrive Folder Permissions Still Show as Unavailable
The Advanced button stays grayed out after making files always available
This can occur if the folder is still syncing or if the file system has not fully updated. Wait for the green checkmark to appear on all files inside the folder. If the button remains disabled, restart File Explorer by opening Task Manager, right-clicking Windows Explorer, and selecting Restart. Then try again.
OneDrive reverts the folder to online-only after editing permissions
OneDrive sync may overwrite local changes if the folder is set to Files On-Demand. After you finish editing NTFS permissions, do not manually change the folder status back to online-only until you have confirmed the permissions work correctly. If OneDrive reverts the folder, repeat the steps to make the folder always available, then reapply the permissions.
Permission changes do not apply to other users
NTFS permissions are local to your computer. They do not affect how other users access the folder through OneDrive web or their own sync clients. To control access for other users, use the OneDrive web interface: right-click the folder, select Share, then Manage access. You can change roles or remove users there. This is the correct method for cloud permissions.
OneDrive Web Permissions vs NTFS Advanced Permissions: Key Differences
| Item | OneDrive Web Permissions | NTFS Advanced Permissions |
|---|---|---|
| Scope | Applies to all users accessing via OneDrive web, mobile, or sync | Applies only to the local Windows file system on the owner’s computer |
| Permission types | Can view, Can edit, owner | Full control, Modify, Read & execute, List folder contents, Read, Write |
| Access method | Right-click folder > Share > Manage access | Right-click folder > Properties > Security > Advanced |
| Sync behavior | Changes sync to all users immediately | Changes are local only and do not sync to OneDrive |
| Requires Files On-Demand | No | Must be disabled to view advanced permissions |
Use OneDrive web permissions for sharing folders with colleagues. Use NTFS permissions only when you need to restrict local access on your own computer, for example, to prevent another user of the same PC from opening certain files.
You can now view and edit NTFS advanced permissions for your OneDrive folders by making them always available on your device. If you need to share a folder with others, use the OneDrive web Manage access panel instead of editing local permissions. For advanced users, consider using the Group Policy setting Show the Advanced Security button in File Explorer to enable the button permanently for all synced folders. This setting is located under Computer Configuration > Administrative Templates > Windows Components > File Explorer.