A significant update to Google Drive permissions is already taking place for organisations that rely on standard Google Drive folders rather than shared drives.
TL;DR
- Google Drive has introduced Limited access folders, with automatic conversion for relevant folders starting in March 2026.
- You can lock down specific folders so they remain private, even if the parent folder is shared with a wider group or the entire company.
- This supports a cleaner, folder-first permission model in Google Drive.
- Switching to a Shared drives-only approach + proper Google Drive training can simplify access, security, and management for your team in the long term.
- While this change doesn’t affect who can access your existing files and folders, it will impact how permissions are structured, managed, and displayed in the future.
This is a good time to review your Google Drive setup with a security review.
While Limited access improves standard Drive folders, shared drives remain the gold standard for organisations using Google Workspace. If you are on a Business Starter plan, upgrade today to Business Standard to start using shared drives.
What’s Happening in Google Drive from March 2026?
Google will automatically convert restricted child folders into the new Limited access standard if they sit inside a more open parent folder.
This is a permissions model change, so there are no changes to who can access your existing items. You can already start using Limited access today but it’s important to understand the basics first:
- You can no longer have an “Anyone” parent folder with restricted sub-folders unless those are explicitly set as Limited access.
- Restricted folders will be visible to people with access to the parent folder but they won’t be able to open them.
Why is Google Making This Change?
Many organisations still use a single parent folder in Google Drive with general access (i.e. Anyone with the link), then manually restrict access to individual subfolders or files.
This approach is fragile because permissions become inconsistent, users are confused when files won’t open, and people managing folders end up managing access file-by-file.
What is “Limited Access” in Google Drive?
Limited access allows you to lock down a specific folder so only designated people can open it, even if they have access to the parent folder.
Key Features of Limited Access:
- It applies to folders, not individual files.
- Permissions do not “trickle down” from the parent folder; the Limited access folder acts as a secure silo.
- If a user doesn’t have permission, the folder appears greyed out. This eliminates the “Where did that file go?” confusion since users can see the folder exists, but they simply can’t open it without explicit access.
This brings Google Drive closer to a clear, predictable, folder-first permission model, exactly how Drive for business is designed to be used.
When Should You Use Limited Access?
Limited access is ideal for:
- Sensitive files: When a team shares a large project folder, but only managers should see the “Budgets” sub-folder.
- Predictability: When you want to ensure that adding someone to a top-level folder doesn’t accidentally give them access to sensitive sub-folders.
- Clean organisation: You’re trying to reduce manual file-level sharing and have consistent, predictable Google Drive permissions.
How to Set Up Limited Access Folders in Google Drive
Step 1: Right-click the folder you want to restrict
Step 2: Click Share, then select the Settings (cog icon)
Step 3: Toggle Limit access on
Step 4: Return to the sharing screen and add or remove users as needed
That’s it! Permissions are now cleanly contained within that folder.
Pro tip: If you have one or more sensitive files, don’t restrict the files themselves. Place them in their own folder and apply Limited access to that folder.
Limited Access Folders vs Shared Drives
While Limited access is a great tool for standard folders, shared drives are still the gold standard for Drive collaboration.
Shared drives offer better ownership (the company owns the files, not individuals) and more robust permission sets. If you find yourself constantly fiddling with the Limited access settings, it might be time to review your Google Workspace workflows with the help of a consultant.
If your business hasn’t embraced Shared drives yet, this update is a strong signal that now is the time. Organisations using the Starter edition can get instant access to shared drives by upgrading to Google Workspace Business Standard.
How Refractiv Can Help
Managing complex Drive structures requires more than just knowing where the buttons are; it requires a strategy. As leading Google Workspace consultants, Refractiv helps businesses streamline their Google Workspace workflows.
Whether you need bespoke Google Drive training for your team or a full migration from legacy servers to Google Drive, we are here to ensure your data is secure and your team is productive.
Get in touch today to learn more about our consultancy services and Google Drive training packages.
