When multiple users edit the same file simultaneously, modern collaborative systems often employ conflict prevention or resolution strategies. File locking mechanisms restrict editing to one user at a time. Alternatively, version control systems track all changes and attempt automatic merging; if conflicting edits occur on the same lines, a merge conflict is flagged for manual resolution.

Common tools demonstrate this. Google Docs allows real-time co-editing, showing collaborators' cursors and merging changes instantly. Integrated Development Environments (IDEs) like Visual Studio Code, combined with Git, allow multiple developers to work on the same code files simultaneously; Git merges non-overlapping changes seamlessly and highlights conflicts during sync for manual fixes.

The main advantage is accelerated teamwork without manual file swapping. A key limitation is potential confusion or data loss if merge conflicts are handled incorrectly. Systems requiring manual conflict resolution demand user awareness to avoid overwriting others' work. Future development focuses on improving auto-merge intelligence and clearer conflict visualization tools to further streamline collaboration.