Updated March 18, 2026: We have updated the timeline. Thank you for your patience. 

[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 complete on March 18, 2026 (previously early April).

[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:]