When you share a file in Microsoft Teams, it is not simply attached to a message — it is uploaded to Microsoft 365 cloud storage and a link is shared. Understanding where files end up, and why this matters, helps you organise shared documents and avoid losing important files when people leave the organisation. This guide explains exactly how file sharing works in Teams, where everything is stored, and how to manage it effectively.
Files Shared in a Channel Are Stored in SharePoint
Every Teams channel has a corresponding SharePoint document library behind the scenes. When you share a file in a channel conversation, Teams uploads it to that SharePoint library automatically — you never need to think about SharePoint directly unless you want to.
Because the file lives in SharePoint, it persists long after the original message is forgotten. All members of the Team can access, edit, and co-author the file simultaneously without anyone needing to send updated versions back and forth by email. Permissions are inherited from the Team membership, so anyone who can see the channel can see the file.
To access channel files directly, select the Files tab at the top of any channel. From there, select Open in SharePoint to manage folders, move files, or set more granular permissions. This is particularly useful if you want to organise files into subfolders or view the full document library for a project.
[Screenshot: The Files tab inside a Teams channel, showing uploaded documents and the Open in SharePoint button]
Files Shared in a Chat Are Stored in OneDrive
Files shared in a private or group chat work differently. When you send a file in a chat, Teams uploads it to the sender’s OneDrive, inside a folder called Microsoft Teams Chat Files. The recipient receives a shared link with view or edit permissions rather than a copy of the file itself.
This creates an important risk that many Teams users are unaware of: if the person who shared the file leaves the organisation and their OneDrive account is deleted or reassigned, any links to those files can break. Recipients will lose access entirely unless your IT team has an offboarding policy that migrates or preserves OneDrive content.
This is the single most important reason to share significant files in channels rather than chats wherever possible.
How to Share a File in Teams Step by Step
Sharing a file in Teams takes a few seconds once you know where to look.
- Open the chat or channel where you want to share the file.
- In the message compose box, select the paperclip or attachment icon (labelled Attach in newer versions).
- Choose where to upload from: Upload from my computer, OneDrive, or SharePoint.
- Select your file and confirm.
- Teams uploads the file and inserts a link into your message automatically.
- Add any message text you want alongside the link, then send.
Recipients can view, download, or edit the file depending on the permissions in place. For channel files, editing is available to all Team members by default. For chat files, the recipient is given view or edit access at the point of sharing.
[Screenshot: The attachment icon highlighted in the Teams message compose box, with the upload options visible]
Co-Authoring Files in Real Time
One of the most practical benefits of storing files in SharePoint and OneDrive is that multiple people can edit the same Word, Excel, or PowerPoint document at the same time. This works whether the file was shared in a channel or a chat.
To co-author a file, open it from the Teams interface. It will open in the browser-based version of the relevant Office app, or in your desktop application if you have Microsoft 365 installed. Other editors appear in the document with their name shown alongside their cursor position, and changes sync within seconds.
This eliminates the need to email files back and forth or manage multiple versions. All changes are saved to the cloud automatically — there is no need to manually save.
Understanding File Permissions
Permissions in Teams follow a straightforward logic, though it helps to understand the distinctions.
- Standard channel files: accessible to all members of the Team by default.
- Private channel files: only accessible to members of that specific private channel, even if they are in the wider Team.
- Chat files: accessible only to the people in that chat conversation.
To change or restrict permissions on a specific file, open the file from Teams, select Share, then choose Manage access. From here you can remove access for specific people, change view-only links to edit links, or set an expiry date on shared links. These options are particularly useful when sharing files temporarily with external guests.
Microsoft 365 Business Basic starts at around £4.90 per user per month in the UK and includes Teams, SharePoint, and OneDrive storage. Business Standard (around £9.90 per user per month) adds the desktop Office applications, which are required for the full co-authoring experience in desktop apps.
Finding Files You Have Shared or Received
Teams gives you several ways to locate files without scrolling back through conversations.
- Files app in the left navigation: select the Files icon in the sidebar to see all files recently shared across all your chats and channels. You can filter by channel, chat, or file type.
- Files tab in a specific chat or channel: every conversation has a Files tab at the top that shows all files shared within it.
- Search: use the Teams search bar at the top, type the filename or a keyword, then select the Files tab in the search results.
For files you uploaded yourself, you can also browse directly to Microsoft Teams Chat Files in your OneDrive, or to the relevant SharePoint library via the Files tab in any channel.
What Happens to Files When Someone Leaves the Organisation
This is where many organisations run into problems, so it is worth being explicit.
Channel files stored in SharePoint are not affected when a user leaves. They belong to the Team, not the individual, so they remain fully accessible to other members.
Chat files stored in OneDrive are tied to the account of the person who uploaded them. What happens next depends on your organisation’s Microsoft 365 offboarding policy. If the departed user’s account and OneDrive are deleted promptly, all links to files they shared in chats will break. If their account is retained or the OneDrive content is migrated to a shared location, the files remain accessible.
The practical takeaway is straightforward: for any file that needs to be available long-term, or that multiple colleagues will need, always share it in a channel rather than a private chat. Reserve chat file sharing for quick, informal exchanges where permanence is not a concern.
Getting into this habit from the start saves a significant amount of frustration when team members move on or when you need to retrieve a document months after it was originally shared.
Related articles: How to Use Microsoft Teams on Mobile: Android and iPhone Guide, How to Transfer a Call in Microsoft Teams, Microsoft Teams Keyboard Shortcuts: The Complete UK Guide
For a full index of every Teams guide and troubleshooting fix on Serverman, see the Microsoft Teams complete guide and troubleshooting hub.
