File sharing in Microsoft Teams refers to the method of uploading, exchanging, or collaboratively working on documents, presentations, and other files directly within the Teams platform. Instead of emailing attachments, files are shared within specific chats, channels, or meetings, leveraging integrated cloud storage. Files shared in standard channels are stored in the connected SharePoint Online site, while files shared in private chats or group chats are stored in the participants' OneDrive for Business. This centralizes access and avoids multiple versions floating around in email inboxes.

You share files by selecting the paperclip icon (Attach) beneath the message box in any chat, channel conversation, or meeting chat. For instance, within a project team channel, you could upload a project proposal document for all channel members to access immediately. Alternatively, during a direct chat with a colleague, you might share a draft presentation stored in your OneDrive for quick feedback before a meeting. Uploading is straightforward using Teams' desktop, web, or mobile apps.

Key advantages include seamless real-time co-authoring within Microsoft Office files and automatic synchronization with SharePoint or OneDrive for version control and broader sharing settings. Limitations involve reliance on available SharePoint/OneDrive storage quotas and permission inheritance from those services. Ethically, understanding and managing file permissions correctly is crucial to prevent sensitive data leaks. Future developments likely focus on tighter integrations with other Microsoft 365 apps and AI-powered file suggestions. This functionality significantly streamlines collaboration within organizations using Teams.