After a OneDrive migration, users sign in to a new account and see cloud-only files. That is Files On-Demand at work, not a failed copy. Learn what the icons mean, how disk space changes and which settings to set before cutover. Old Files On-Demand choices do not follow the data, so plan them again.
Monday morning after cutover, a user calls. Her folders are there, but nothing opens on the plane. Her files are fine. They just stayed in the cloud.
I see this on almost every OneDrive project. This guide explains OneDrive Files On-Demand after migration, why files show as cloud only and how to set disk space and offline access for your users, using facts from Microsoft's own pages.
What Happens to OneDrive Files on-Demand After a Migration?
A migration copies files into the new OneDrive in the cloud. It does not copy the settings of the sync app on every PC. So when a user signs in with the new account, the sync app starts fresh.
Microsoft says new users see online-only files by default when the Files On-Demand policy is enabled. That is why a 200 GB account does not fill a small laptop. It is also why users feel the move "lost" their files until they open them.
Old choices do not follow the data. If a user marked folders as Always keep on this device in the old tenant, nothing carries that mark to the new account. In my experience, this one gap causes more cutover calls than missing files do.
What do the OneDrive Files on-Demand Status Icons Mean?
Microsoft's page on OneDrive Files On-Demand for Windows lists three file states. Every file in File Explorer shows one of them.
| State | Icon | Disk space | Offline |
|---|---|---|---|
| Cloud only | Blue cloud | Takes no space | Cannot open |
| Locally available | Green check | Downloaded after you open it | Opens |
| Always available | Green circle with white check | Always uses space | Opens |
Which Files on-Demand Setting Fits Your Users?
Choose by how people work, not by one rule for the entire company.
| User type | Best setting | Watch for |
|---|---|---|
| Small SSD laptop with a large account | Free up disk space | Files need internet to open |
| Traveler or field worker | Always keep key folders on the device | Space used by those folders |
| Power user who wants everything local | Download all files | Disk must hold the full account |
| Admin who sets one default | Files On-Demand policy | Does not choose folders for users |
How do You Set OneDrive Files on-Demand by Hand?
The manual route is two actions. For one file or folder, right-click it and select Always keep on this device or Free up space. That moves it between always available and cloud only.
For the entire sync app, open the OneDrive cloud icon, then Help and Settings, then Settings. Go to the Sync and back up tab and open Advanced settings. Microsoft lists two options there: Free up disk space, which is the default, and Download all files.
Know the limits before you promise anything. Online-only files cannot open without internet. Desktop search finds online-only files by name but not by content. And if you move a file outside the OneDrive folder, it downloads to the new place and leaves OneDrive. Microsoft also says Files On-Demand is not supported with Windows Information Protection and may clash with some third-party antivirus software.
Manual setup works for one PC. It does not work for two hundred, which is where policy comes in.
How do You Prepare OneDrive Files on-Demand Before a Migration?
These are the steps I follow before every cutover. They keep the first Monday quiet.
- Check every PC. Microsoft requires Windows 10 version 1709 or later or Windows Server 2019. OneDrive build 23.066 or later enables Files On-Demand by default.
- Set the default with policy. Enable Use OneDrive Files On-Demand in Group Policy or Intune. The registry value is FilesOnDemandEnabled under HKLM\SOFTWARE\Policies\Microsoft\OneDrive.
- Plan disk space. Decide who gets Free up disk space and who gets Download all files. Check the DiskSpaceCheckThresholdMB policy if you use silent sign-in without Files On-Demand. Its default is 500 MB.
- Copy the data with a tool. Move accounts into the new tenant first. Files appear in the cloud and sync down as users sign in.
- Sign in with the new account. Unlink the old account on the PC, then sign in and watch the icons. Cloud-only icons mean the sync is healthy.
- Mark offline folders. Ask travelers to set key folders to Always keep on this device before they leave.
If sync stalls after sign-in, read OneDrive not syncing after migration. If files will not open, read OneDrive not opening after migration.
What does a Migration Tool Leave Behind for Files on-Demand?
Settings of the sync app live on the PC, not in the cloud. So no tool can copy them with the files.
RecoveryTools OneDrive Migrator copies OneDrive for Business between tenants and also within the same organization. It keeps original dates, can keep every version or the current version only, hash checks every file and never overwrites existing files. The source stays read-only.
It does not carry sharing links, Personal Vault, OneNote notebooks, the recycle bin, retention and legal holds, sync app and Files On-Demand settings or guests. That means every user starts with the default state on the new account. For folder redirection, read Known Folder Move after migration.
Copy OneDrive Accounts Before Users Sign in
RecoveryTools OneDrive Migrator copies OneDrive for Business between tenants or inside one organization and keeps original dates. It hash checks every file and the source stays read-only. Test one account first, then move the rest.
No credit card, no sign-up. Works on Windows 11, 10 and Windows Server.
For the full move, read how to migrate OneDrive from one tenant to another.
What are the Best Practices for OneDrive Files on-Demand After Migration?
- Tell users before cutover. One short note about cloud icons saves many calls.
- Set the default by policy. Do not rely on users to find the setting.
- Check disk space first. Download all files on a small drive fills it fast.
- Prepare travelers. Online-only files cannot open without internet.
- Test one pilot PC. Sign in, open files and watch the icons before you roll out.
Which Mistakes Break Files on-Demand After a Migration?
Four come up often. First, choosing Download all files on a laptop that cannot hold the account. Second, assuming old Always keep choices moved with the data. Third, leaving the old account linked on the PC, so two sync folders compete for space. Fourth, calling cloud-only icons a failed copy when the files are fine.
My Verdict on Files on-Demand After Migration
Cloud-only files after a move are normal. They are the default, and they protect small drives.
Set the default by policy, protect travelers and tell users what the icons mean. Then the first Monday is quiet.
Frequently Asked Questions
Why do My Files Show as Cloud Only After a OneDrive Migration?
Microsoft says new users see online-only files by default when Files On-Demand is enabled. The files are in the cloud and download when you open them.
How do I Keep OneDrive Files on My Device?
Right-click the file or folder and select Always keep on this device. You can also select Download all files in OneDrive Settings under Sync and back up.
Do Files on-Demand Settings Move With a Migration?
No. Settings live in the sync app on every PC. RecoveryTools OneDrive Migrator does not carry sync app or Files On-Demand settings, so users start with the default.
Can I Open Cloud-Only Files Offline?
No. Microsoft says online-only files cannot open without an internet connection. Set key folders to Always keep on this device before going offline.
What are the Requirements for Files on-Demand?
Microsoft lists Windows 10 version 1709 or later or Windows Server 2019. It is not supported with Windows Information Protection and may clash with some third-party antivirus software.
Which Policy Controls Files on-Demand for Many Users?
Use OneDrive Files On-Demand, stored as FilesOnDemandEnabled under HKLM\SOFTWARE\Policies\Microsoft\OneDrive. Microsoft says it controls whether the feature is enabled for new users.
What Happens if I Move a Cloud-Only File Out of OneDrive?
Microsoft says it downloads to the new location and is removed from OneDrive. Move files inside the OneDrive folder if you want them to stay online only.
Jamie blends strategic marketing insight with technical writing, turning migration and recovery topics into guidance that works for technical and general readers alike.
Published 19 October 2026. File states and requirements come from Microsoft's page on OneDrive Files On-Demand for Windows. Policy names come from Microsoft's page on group policy for OneDrive. Product behavior comes from the RecoveryTools OneDrive Migrator page. Microsoft can change these limits, so check them before you plan.