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administrative templatesComputer ConfigurationNot configured

Use OneDrive Files On-Demand

Enables Files On-Demand so files appear in File Explorer without being downloaded.

10 May 20264 min —
Policy path
Computer Configuration > Administrative Templates > OneDrive
Supported on
Windows 10, Windows 11, Windows Server 2016 and later

Enables Files On-Demand so files appear in File Explorer without being downloaded. Security baselines recommend setting it to Enabled.

Description

Use OneDrive Files On-Demand is a Windows Group Policy setting located under Computer Configuration > Administrative Templates > OneDrive. It applies to the Computer Configuration branch and is classified as a Informational-level policy in the OneDrive category.

Enables Files On-Demand so files appear in File Explorer without being downloaded.

Microsoft sets the default value to Not configured while industry security baselines (CIS, NIST, DISA STIG) recommend Enabled.

Under the hood, this policy is enforced through the Windows registry at HKLM\Software\Policies\Microsoft\OneDrive using the value name FilesOnDemandEnabled. Modifying the value directly through regedit.exe or PowerShell produces the same effect as configuring the GPO, but going through Group Policy is preferred so that the setting is centrally managed and survives reboots, image rebuilds, and policy refresh cycles.

In-depth explanation

This is primarily an operational or user-experience setting. It does not directly raise or lower the security posture, but it standardizes behavior across the fleet, which is important for predictable support, training, and troubleshooting in an MSP-managed environment.

The policy is grouped under OneDrive, which means it is typically applied through a domain-wide GPO linked at the OU level. In a multi-tenant MSP context, scope it through WMI filters or security group filtering rather than linking at the domain root, so that you can roll out progressively (pilot OU → wider rings → all production).

The setting takes effect after the next Group Policy refresh (gpupdate /force for immediate testing, or by default within ~90 minutes for workstations and ~5 minutes on domain controllers). For computer-side policies a reboot may be required; for user-side policies, a sign-off/sign-on cycle is enough.

Use cases

  • Apply organization-wide hardening of onedrive on all domain-joined Windows endpoints.
  • Roll out a CIS Benchmark-aligned baseline targeting 'Use OneDrive Files On-Demand' via a dedicated GPO.
  • Reduce attack surface for accounts that handle privileged credentials or sensitive data.
  • Standardize the configuration across multiple customer tenants for an MSP-managed fleet.

Security implications

This control is primarily about consistency and supportability rather than security. The main risk of leaving it unconfigured is divergence between machines, which makes troubleshooting and standardized imaging harder, especially across multiple customer tenants in an MSP context.

How to configure

  1. Open Group Policy Management Console (gpmc.msc) on a domain controller or a workstation with RSAT installed.
  2. Create or edit a GPO linked to the OU containing the target computer configurations. We recommend a dedicated baseline GPO (e.g. SEC – OneDrive) instead of editing Default Domain Policy.
  3. Navigate to Computer Configuration > Administrative Templates > OneDrive.
  4. Open Use OneDrive Files On-Demand and set it to Enabled.
  5. Click OK and close the editor.
  6. On the target endpoint, run gpupdate /force (or wait for the next refresh cycle), then verify with rsop.msc or gpresult /h report.html.

Direct registry path: HKLM\Software\Policies\Microsoft\OneDrive\FilesOnDemandEnabled. You can apply the same change with PowerShell:

New-Item -Path 'HKLM\Software\Policies\Microsoft\OneDrive' -Force | Out-Null
Set-ItemProperty -Path 'HKLM\Software\Policies\Microsoft\OneDrive' -Name 'FilesOnDemandEnabled' -Value <value> -Type DWord

Registry mapping

Registry pathHKLM\Software\Policies\Microsoft\OneDrive
Value nameFilesOnDemandEnabled
Value typeREG_DWORD
Disabled valueNot configured

Frequently asked questions

What does the Use OneDrive Files On-Demand Group Policy do?
Enables Files On-Demand so files appear in File Explorer without being downloaded.
Where do I find this setting in the GPO editor?
Open <code>gpmc.msc</code>, then navigate to <code>Computer Configuration > Administrative Templates > OneDrive</code> and look for <strong>Use OneDrive Files On-Demand</strong>.
What is the Microsoft default value?
<code>Not configured</code> on a fresh Windows install. Domain-joined machines may inherit a different value if a baseline GPO is already in place.
What value do security baselines recommend?
<code>Enabled</code> – aligned with CIS, NIST, and DISA STIG guidance for current Windows versions.
Can I configure this without a GPO?
Yes, by writing to <code>HKLM\Software\Policies\Microsoft\OneDrive\FilesOnDemandEnabled</code> directly via <code>regedit</code>, PowerShell, or Intune. A GPO is preferred for centrally managed environments because it survives reimaging and is easier to audit.