How to Manage Permissions in SharePoint Online (Step-by-Step)

How to Manage Permissions in SharePoint Online (Step-by-Step)

Last Updated on March 14, 2025

Confused about SharePoint Online permissions?

In this guide, let’s talk about how you can manage permissions in SharePoint Online.

Let’s get started.

Default Permission Levels and Groups

Technically, there are several default permission levels in SharePoint that define what users can do on a site.

The main ones are:

  • Full control
  • Design
  • Edit
  • Contribute
  • Read
  • Restricted view
  • Approve
  • View only

Admins can also create new permission levels as needed, and these don’t modify or replace the default ones.

add a new permission level

Instead, they add custom options to meet specific needs, like a combination of one or more of the permission levels.

Then, there are SharePoint groups, which help by grouping users together and assigning them permission levels.

The predefined groups include:

  • Owners (have full control)
  • Members (usually get edit permissions)
  • Visitors (typically have read access)

The nice thing about groups is that they can help organize and scale permission management by simply adding/removing users.

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    How to Manage Site Permissions

    When we say managing site permissions, these involve controlling who can access and interact with a SharePoint site.

    These include several actions like:

    • Granting and removing access
    • Changing permission levels
    • Creating custom permissions

    Let’s talk about these actions.

    Step 1: Go to site permissions

    The first step in managing site permissions is to get to the site permissions.

    Open the SharePoint site, click the gear icon, then select Site permissions:

    gear icon then site permissions on a team site

    You will then see various permission settings here.

    Step 2: Add or Remove Users and Groups

    From here, you can add users and SharePoint groups to the site through the Share button.

    share site button in permissions

    There’s a slight difference between a SharePoint team site and a communication site, but both have an option to share the site.

    If you want to remove someone from the site, just open their group, then select the Remove option for that user.

    remove user from the site

    You can also change the user’s group here, like how clicking the Full control will move that user to the Site owners group.

    Step 3: Modify Permission Levels

    Now, if you want to modify permission levels, you must click the Advanced permissions settings below the panel.

    Go to the advanced permissions settings

    You will then see the names of users and groups that have permission on the site.

    If you want to change existing permission levels or assign different ones to users or groups, you need to select them.

    There will then be an Edit User Permissions icon in the ribbon:

    select the group and edit the user permissions for that group

    From there, you will be able to select and unselect the permission levels for that user or group, as shown here:

    check and uncheck permissions on this page

    There are more things you can do here, like creating another group, removing permissions, and even adding a permission level.

    Breaking and Restoring Permission Inheritance

    Permission inheritance basically means that a site, list, or library automatically gets its permissions from the parent site.

    It’s useful since it keeps things simple because you don’t have to manually set permissions for every part of the site.

    When managing permissions, you can either:

    • Keep inheritance (so permissions stay consistent across the site)
    • Break inheritance (so specific areas have unique permissions)

    The default is to keep inheritance, and breaking it is useful when you need to restrict access to sensitive content.

    Breaking Permission Inheritance

    For modern sites, you can break inheritance at these levels:

    • Lists and libraries
    • Folders within libraries
    • Individual items or documents

    Naturally, you won’t be able to break the permission inheritance of a site collection because each site is its own collection.

    For the lower levels, simply go to the list or library settings, then find the permissions for this list (or library).

    gear icon then list settings

    permissions for this list

    Click on the Stop Inheriting Permissions button to set unique permissions for this specific location or item.

    stop inheriting permissions button

    You will then be able to add or remove users/groups as needed, as well as assign different permission levels.

    To grant unique permissions, click on Grant Permissions and enter the people with whom you want to share the content.

    grant permissions button on a list

    To restore inheritance, just go back to the permission settings for the list, library, item, or document.

    The button for stopping inheritance will become Delete unique permissions, click on it to restore permission inheritance.

    How to Manage Permissions for External Users

    About managing SharePoint permissions for external users …

    It’s a little different than usual because it involves external sharing settings, which, thankfully, you can change.

    For this, you need to make sure that guest sharing is enabled in the SharePoint admin center’s sharing policies:

    sharing tab in sharepoint admin center

    new and existing guests in tenant external sharing

    I prefer setting it up to “New and existing guests” than “Anyone” simply because it prevents anonymous user access.

    Unlike the “Anyone” setting, this makes sure that external users must sign in before accessing content.

    That sets up the whole tenant, but you can also set it up for each site on the admin center’s active sites page.

    see all the sites in the tenant

    edit sharing options in active sites

    external file sharing settings of communication site

    After that, you will be able to share a document or folder externally through the same methods of sharing with others.

    Apply Good Permission Management Practices

    Managing SharePoint permissions is all about keeping access organized and secure.

    To make this easier, it’s worth observing good permission management practices, like using groups instead of users.

    Over time, users may need to get more access than they need, so always schedule a time to review and update permissions.

    Do you have any questions about SharePoint permissions management? Let me know below.

    For any business-related queries or concerns, contact me through the contact form. I always reply. 🙂

    About Ryan Clark

    As the Modern Workplace Architect at Mr. SharePoint, I help companies of all sizes better leverage Modern Workplace and Digital Process Automation investments. I am also a Microsoft Most Valuable Professional (MVP) for SharePoint and Microsoft 365.

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