How to set the default Office 365 save location to “This PC” instead of Onedrive

    Microsoft has spent years pushing OneDrive as the default save location for Microsoft 365 apps—and from Microsoft’s perspective, it makes sense. Cloud-first enables collaboration, versioning, ransomware recovery, and data portability.

But in the real world, not every environment is cloud-first.

After working across service desks, infrastructure teams, and regulated environments, I’ve seen many legitimate reasons why organisations still prefer (or require) files to save locally or to network drives by default:

• Legacy applications that rely on local paths
• Line-of-business apps that break with cloud file sync
• Highly regulated environments (health, legal, government)
• RDS / Citrix / AVD environments with redirected storage
• Slow or unreliable WAN links
• Security models where OneDrive access is restricted

The problem? Out of the box, Microsoft 365 apps default to saving to OneDrive, and many users don’t even realise they’re doing it.

This article walks through how to change the default save location to “This PC”, both manually and at scale using Group Policy—while also explaining what Microsoft doesn’t tell you about this setting.

Understanding How Microsoft 365 Handles Save Locations

Before changing anything, it’s important to understand how Microsoft 365 decides where files are saved.

Microsoft Office apps prioritise:

1. Cloud locations (OneDrive / SharePoint)
2. Recently used locations
3. Local paths (This PC)

This behaviour is controlled by:

• Application-level settings
• Registry values
• Group Policy (via registry enforcement)
• OneDrive Known Folder Move (KFM)

If you don’t explicitly override this behaviour, users will almost always save to OneDrive first, even if they don’t intend to.

Method 1: Manually Set “This PC” as the Default Save Location (Per User)

This method is suitable for:

• Small businesses
• Individual users
• IT staff machines
• Testing before rolling out via policy

Steps

1. Open any Microsoft Office app (Word, Excel, or PowerPoint)
2. Click File
3. Select Options
4. Go to the Save tab
5. Tick “Save to Computer by default”
6. (Optional but recommended) Set a default local path

Once enabled:

• Pressing Ctrl + S saves directly to This PC
• “Browse” opens the local file system by default
• OneDrive remains available, but not prioritised

Real-World Observation

In practice, most users never change this setting themselves, even when they complain about files “disappearing” into OneDrive. Relying on manual configuration in enterprise environments almost always leads to inconsistent behaviour.

Once you’ve completed the steps, every time you click on the save button (or use the Ctrl + S keyboard shortcut), the default save location will be changed to save a document directly to “This PC.”

Method 2: Enforce Default Save Location Using Group Policy (Recommended for Enterprise)

Why Group Policy Is Still the Right Tool

Microsoft never added this setting cleanly into the Office ADMX templates. As a result, administrators must enforce it using Registry Preferences.

This approach:

• Works across Office 2013 → Microsoft 365 Apps
• Does not require scripting
• Is reversible
• Survives Office updates

Group Policy Configuration Steps

1. Open Group Policy Management
2. Create a new GPO or edit an existing one
3. Navigate to:

User Configuration  
└ Preferences  
  └ Windows Settings  
    └ Registry

4. Right-click → New → Registry Item

Registry Item Settings

Office Version Notes

• Office 2016 / 2019 / Microsoft 365 Apps: 16.0
• Office 2013: 15.0

5. Click OK
6. Run gpupdate /force or wait for policy refresh

What This Setting Actually Does

Setting PreferCloudSaveLocations to 0 tells Office:

“Do not prioritise cloud locations when saving files.”

It does not:

• Disable OneDrive
• Block cloud saving
• Remove SharePoint access

This distinction is important when dealing with security teams or auditors.

Common Pitfalls (Learned the Hard Way)

1. OneDrive Known Folder Move Overrides User Expectations

If Known Folder Move (Desktop/Documents/Pictures) is enabled, users may still think they’re saving locally—when they’re actually saving into OneDrive-backed folders.

Recommendation:
Be explicit in user communication and documentation.

2. RDS / Citrix / AVD Environments

In multi-user environments:

• Ensure default paths point to redirected drives
• Avoid saving to C:\Users on non-persistent hosts
• Combine this policy with folder redirection or FSLogix

3. Office Updates Can Reset User Preferences (But Not Policies)

Manual settings are user-controlled and can change.
Registry policies cannot—which is why Group Policy is the safer long-term option.

Security and Compliance Considerations

From a cybersecurity perspective, forcing local saves can be either a risk or a benefit—depending on your controls.

Potential Risks

• Files bypass cloud DLP policies
• Local ransomware exposure
• No automatic version history

Mitigations

• Endpoint backup solutions
• EDR with ransomware rollback
• Controlled folder access
• Encrypted local storage (BitLocker)

In regulated environments, local storage is often preferred due to data sovereignty, auditing, or system integration requirements.

Best Practice Recommendation

From experience, the most balanced approach is:

• Default to “This PC”
• Allow OneDrive and SharePoint
• Educate users
• Log and monitor data movement
• Apply policy consistently

This avoids shadow IT behaviour where users find workarounds because IT policies don’t match how they actually work.

Final Thoughts

Microsoft’s cloud-first approach works well in many organisations—but not all. As IT professionals, our role is not to blindly follow vendor defaults, but to design systems that support business reality, security requirements, and user workflows.

Changing the default Microsoft 365 save location to “This PC” is a small configuration change that can:

• Reduce user frustration
• Prevent accidental data exposure
• Improve compatibility with legacy systems
• Increase operational clarity

Most importantly, it gives control back to IT, where it belongs.

Daniel Lutton

From my early days on the helpdesk through roles as a service desk manager, systems administrator, and network engineer, I’ve spent more than 25 years in the IT world. As I transition into cyber security, my goal is to make tech a little less confusing by sharing what I’ve learned and helping others wherever I can.