OneDrive is getting much better at handling HTML and Markdown files

By Karlston, Published Date: 35 minutes ago

The OneDrive Copilot event is underway, and Microsoft has just shown off a number of improvements to both products, as they’re getting more integrated. Most of the stuff Microsoft showcased so far isn’t exactly new, but we’re now seeing these particular features in action.

Among the biggest changes are richer editing tools for HTML and Markdown files, which can now be edited right inside OneDrive’s canvas.

HTML files can be edited directly on the rendered page, so you don’t have to go back to the source every time you want to change a piece of text. There’s also a side-by-side mode that shows the source code on one side and the live result on the other, while a full-screen mode is available when you want to present the finished page.

Microsoft is also paying more attention to the Markdown format, as it’s one of the preferred formats for giving instructions to AI agents. OneDrive now offers a WYSIWYG editor with a regular rich-text toolbar, which allows you to edit a file while it stays in Markdown format when saved. Comments can also be anchored to specific text, which keeps replies and reactions tied to the exact part of the document they’re referring to.

On top of that, Microsoft also showed off real-time co-authoring for Markdown. So, now multiple people can work on the same file at the same time. And finally, Microsoft is making shared libraries easier to find. Libraries can now appear alongside files in OneDrive search, as well as inside the file picker.

Introducing more options for editing HTML and Markdown files seems like a natural fit with the ongoing AI-agent push. As more and more people and companies are designing their own agents, Microsoft is giving them easier ways to write instructions and provide reference material for those agents.

You can watch the entire OneDrive + Copilot event here:

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Posted Wednesday 21 October 2026 at 6:15 am AEST (my time).

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