Limit Sharing of specific folders in SharePoint Online?

[John Gruber]

Is it possible to limit the external sharing of a SharePoint folder with external / guest users?

For example, let's say we have a SharePoint site called Marketing. Marketing documents can be shared externally. But we don't want a specific folder (Confidential) that's stored in the Marketing SharePoint site shared externally.

Is that possible? If so, how?

Or can we do the opposite? Can we set the SharePoint site so no one can share anything from the SharePoint site except a specific folder? For example, Let's say we have the Marketing SharePoint site. Nothing in the Marketing site can be shared externally except files in the Public folder. Is that possible?

If so, how?

Thanks,

John

[#2 · Accepted solution]

I am not so sure if you can configure sharing settings on a folder.

I personally would not do that and just create another SharePoint site, call it "Confidential" and limit the sharing setting for that site.

That way it would also be much, much easier for your users to determine, why they cannot share a file from that location.

Many other SharePoint policies like i.e "Sensitivity Labels" are also only really applicable to sites. (https://learn.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels-teams-groups-sites?vie...)

[#3]

Hi @John Gruber 

Let´s say you have a project with external people and your governance allow it

You can create any folder and share to different levels, because a folder is an item. You must find a plan and see who will see what.

Once again, if your Governance allows, give a shot with the limited access levels

Share a list or list item (microsoft.com)

Be careful to not fall in common mistakes, you have the best practices here

External sharing overview - SharePoint in Microsoft 365 | Microsoft Learn 

BTW see this thread 
Re: External users can't open documents in desktop application - Page 2 - Microsoft Community Hub

Best Regards