MC1242782: Set a custom name for the OneDrive sync folder

Summary

• IT admins can now set a custom name for the local OneDrive sync root folder on Windows devices, helping to reduce path length issues.
• New users will automatically see the custom folder name during setup, while existing users must unlink and relink their accounts to apply the change.
• The feature is opt-in and requires admin configuration; it is not enabled by default.
• The display name in File Explorer and the OneDrive Activity Center will remain unchanged.
• Organizations should consider whether a shorter folder name would be beneficial and plan communications for existing users.

Admin Impact: Medium
User Impact: Low
Release Start: 15 Mar 2026
Release End: 01 Apr 2026
Services: OneDrive
Category: Stay informed
Tags: New Feature, User Adoption, Admin Action

History

3/3/2026 Item Added to Message Center

Microsoft Message

Introduction

To help reduce Windows file path length issues and improve the local file system experience, IT admins can now set a custom name for the local OneDrive sync root folder on users’ Windows devices using the policy Set a custom name for the OneDrive sync folder with the String ID CustomSyncRootFolderName. Today, the default folder name (“OneDrive – (organization name)”) can contribute to path length constraints in deeply nested folder structures. This new policy allows organizations to define a shorter, organization-specific folder name while keeping the OneDrive experience consistent for users.

Screenshot: Configure group policy by opening the relevant group policy in the Local Group Policy Editor application

When this will happen

General Availability (Worldwide, GCC, GCC High, DoD): We will begin rolling out in mid-March 2026 and expect to complete by early April 2026.

How this affects your organization

Who is affected:

• Microsoft 365 tenants using OneDrive sync on Windows devices
• Admins managing OneDrive sync policies
• Users setting up OneDrive sync on Windows and existing users who use OneDrive sync on Windows

What will happen:

• Admins can configure a custom local OneDrive sync root folder name using the new policy.
• New users will automatically see the custom folder name when they set up OneDrive sync.
• Existing users must unlink and relink their OneDrive account for the new folder name to take effect. Learn more: Unlink and re-link OneDrive | Microsoft Support.
• We recommend that existing users delete the original OneDrive folder after relinking to avoid confusion.
• The display name shown in File Explorer’s navigation pane and the OneDrive Activity Center remains unchanged (for example, “OneDrive – (organization name)”).
• This feature is opt-in and requires admin configuration; it is not enabled by default.

What you can do to prepare

• Determine whether a shorter OneDrive sync folder name would benefit your organization.
• Select a custom folder name that meets the following requirements:
  • Must contain at least one character.
  • Cannot be named “OneDrive.”
  • The full folder path must not exceed 120 characters.
  • Standard Windows folder naming rules apply.
• Plan communications for existing users who will need to unlink and relink OneDrive sync.
• Update internal documentation and helpdesk guidance as needed.

Learn more: IT Admins – Use OneDrive policies to control sync settings – SharePoint in Microsoft 365 | Microsoft Learn

Compliance considerations

Question: Does the change include an admin control?

Explanation: This change introduces a new admin policy that allows administrators to configure the local OneDrive sync root folder name on Windows devices.