Software⏱️ 3 min read📅 2026-06-15

How to Fix: "Your OneDrive folder can't be created in the location you selected" error when moving OneDrive to C drive

OneDrive folder creation error on C drive in Windows 10 version 2004.

Quick Answer: Try deleting all OneDrive settings from regedit and check if the issue persists. If not, try resetting OneDrive to its default settings.

📋 Table of Contents

  1. 🛑 Root Causes of the Error
  2. 🚀 How to Resolve This Issue
  3. 💡 Conclusion

The 'Your OneDrive folder can't be created in the location you selected' error occurs when attempting to move the OneDrive folder to a non-default location, such as C:\OneDrive. This issue affects users of Windows 10 version 2004 (build 19041.746) who have OneDrive version 2021 (Build 20.219.1029.007). The frustration arises from the fact that the app does not prompt for re-login after unlinking PC, causing the folder location to revert to the default setting.

This error can be resolved by following a step-by-step guide to troubleshoot and resolve the issue.

🛑 Root Causes of the Error

  • The primary reason for this error is due to a limitation in OneDrive's file system permissions. When attempting to move the OneDrive folder to a non-default location, Windows requires elevated privileges to create the folder. If these privileges are not granted, the app will display an error message.
  • An alternative reason could be related to the security settings of the target drive (C:\OneDrive). If the drive's security settings do not allow for creation of folders by a specific user or group, it may cause the error.

🚀 How to Resolve This Issue

Reset OneDrive Settings and Re-link PC

  1. Step 1: Close all OneDrive apps and restart your computer.
  2. Step 2: Sign in to your OneDrive account again and navigate to Settings > Unlink PC. Confirm that you want to unlink PC from your account.
  3. Step 3: Once the PC is unlinked, sign back in to your OneDrive account and select C:\OneDrive as the desired location. The app should now create the folder successfully.

Check and Adjust Security Settings

  1. Step 1: Open File Explorer and navigate to C:\OneDrive.
  2. Step 2: Right-click on the C:\OneDrive folder and select Properties. Ensure that the security settings allow for creation of folders by your user account or group.
  3. Step 3: If necessary, adjust the permissions to grant write access to the folder.

💡 Conclusion

By following these steps, you should be able to resolve the 'Your OneDrive folder can't be created in the location you selected' error. If you continue to experience issues, consider reaching out to Microsoft support for further assistance.

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