Reference

OneDrive

OneDrive is Microsoft’s cloud storage, built into Windows and Microsoft 365. Its Files On-Demand feature keeps files online-only by default, showing them in File Explorer while they use little local disk space until you open them.

Cloud & backupWindowsGeneral

OneDrive

Also known as: Microsoft OneDrive, OneDrive Files On-Demand, OneDrive online-only

OneDrive is Microsoft’s cloud storage, built into Windows and Microsoft 365. Its Files On-Demand feature keeps files online-only by default, showing them in File Explorer while they use little local disk space until you open them.

  • Files On-Demand keeps files online-only by default
  • Right-click "Free up space" reclaims local disk space
  • Built into Windows and Microsoft 365

Online-only vs locally available files

In File Explorer, OneDrive marks each item with a status: a blue cloud means online-only (a placeholder that downloads when opened and uses little space), a green check means downloaded and available offline, and a filled green circle means Always keep on this device.

Right-click any file or folder to switch between Free up space (make it online-only) and Always keep on this device (download a full local copy). Files On-Demand is what lets a large OneDrive show up in full without filling your drive.

How it affects disk space

Local usage equals only the files OneDrive keeps downloaded, not your entire cloud account. Using Free up space turns local copies back into online-only placeholders to reclaim disk space, while marking folders Always keep on this device does the opposite. Windows Storage Sense can also automatically make unused OneDrive files online-only after a set period.

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