Unable to send one drive link to external users

Question

Please configure B2B collaboration settings correctly and troubleshoot first… Error from Entra B2B: At least one invitation failed. Error: ResponseStatusNotOK, message: Guest invitations not allowed for your company.”

Sharepoint and one drive allowed to Anonymous users.

Users are not allowed to create guest users.

Anything changed from Microsoft which is preventing access now.

cheers

[Moderator note: Personally Identifiable Information removed]

Answer 1

Hi @Priya Jayaraman, 

Thank you for posting your question.

Based on the error message, this is usually not caused by the SharePoint/OneDrive “Anyone” setting itself, but by Microsoft Entra B2B guest invitation settings. The error “Guest invitations not allowed for your company” specifically points to a guest invitation restriction in Entra. 

Microsoft integrated SharePoint and OneDrive with Microsoft Entra B2B, which means your Entra settings now directly govern authenticated external sharing. If your team is noticing new sharing restrictions or errors, this tenant-wide integration is likely the driver behind that behavior.

This change doesn't impact "Anyone" (anonymous) links at all. If a user runs into an Entra B2B error, they aren't actually using a true anonymous link, they are trying to share via the "Specific people" flow, which triggers the guest invitation path and runs right into your Entra security policies.

 

Please review the following steps to troubleshoot your issue:

1. Confirm which link type is being used 
   • If the user is entering an external email address or choosing Specific people, that uses the authenticated guest-sharing path. 
   • If the user is choosing Anyone with the link, that should not depend on guest invitation being allowed. 
2. Review Microsoft Entra External collaboration settings 
   • In Microsoft Entra admin center > External Identities > External collaboration settings, check Guest invite settings. 
   • If the tenant is configured so users cannot invite guests, then new external recipients can fail with exactly this error. 
3. Review domain and collaboration restrictions 
   • If only certain external domains are affected, also check Entra Allow/Block domains and Cross-tenant access settings. 
4. Check site/OneDrive-level sharing settings too 
   • Even if the organization-level sharing setting allows external sharing, the individual site or OneDrive can still be more restrictive.

In practice, the next step depends on the sharing method being used: 

• For anonymous access requirements, please test the configuration explicitly using the "Anyone with the link" option to isolate the behavior. 
• For sharing restricted to specific external recipients, ensure the tenant's Microsoft Entra settings permit guest invitations. The current restriction on creating guest users is the highly probable cause of this delivery failure. 
• If these Entra configurations were recently updated but the issue persists, note that SharePoint temporarily caches synchronized B2B settings. A brief delay may occur before the updated policies take effect consistently.

I hope this helps clarify the behavior. Should you have any further questions, please feel free to reach out.

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