What's new in SharePoint Embedded

Applies to: All

July 2026

The Copilot Retrieval API is generally available and now offers a sharePointEmbedded data source in preview, with pay-as-you-go billing on the Copilot Studio message meter. Users who query the API no longer each need a Microsoft 365 Copilot license, but one licensed user still initializes the semantic index. For more information, see Use the Retrieval API.
You can use the Model Context Protocol (MCP) server to build apps with a coding agent. The open-source SharePoint Embedded MCP server npm package (@microsoft/spe-mcp) is preview software. It lets MCP-compatible AI clients, such as GitHub Copilot in Visual Studio Code or the CLI, Claude, or Cursor, provision and manage SharePoint Embedded applications through natural language.

fileStorageContainerType has a new urlTemplate setting. For more information on what the urlTemplate setting does, see Create and configure a container type.
The FileStorageContainerType.Manage.All Microsoft Graph permission no longer requires the SharePoint Embedded Administrator or Global Administrator role. Any non-guest user in the owning tenant can create a container type and is automatically assigned as an owner of that container type.

fileStorageContainerType operations now emit audit logs for ContainerTypeCreated, ContainerTypeDeleted, ContainerTypeUpdated, and ContainerTypeOwnersUpdated. For more information, see Audit events.
fileStorageContainer supports bulk creation and update of permissions using delta patch. For more information, see Upsert permissions.
Clarified the authorization model for administrative actions on containers. For more information, see Handle operations not exposed through Graph.

Microsoft has deprecated the SharePoint Embedded agent SDK in favor of the new SharePoint Embedded knowledge source in Microsoft Foundry.
fileStorageContainerType resource has a new permissions relationship that allows management of the container type's owners. This is available in the beta Microsoft Graph endpoint. For more information, see Manage container type owners.
fileStorageContainer resource has a new informationBarrier property that allows management of the container's information barrier. This is available in the beta Microsoft Graph endpoint. For more information, see information barriers.
The SharePoint Embedded native PDF viewing experience now supports searching within the file, viewing comments and sticky notes embedded on the file, and printing. The new features are now available through the driveItem: preview API in both the beta and v1.0 Microsoft Graph endpoints.

fileStorageContainer APIs to list columns, create column, update column, and delete column are now available in the v1.0 Microsoft Graph endpoint.

fileStorageContainerType APIs are now available in the v1.0 Microsoft Graph endpoint.
fileStorageContainerTypeRegistration APIs are now available in the v1.0 Microsoft Graph endpoint.

SharePoint Embedded is now available in Microsoft 365 GCC (not yet GCC High or DoD) for US Government customers. For more information, see Microsoft Graph national cloud deployments.
SharePoint Embedded migration APIs are now available in the v1.0 Microsoft Graph endpoint.

recycleBinItem: restore supports driveItemId as an alternate key to enable restoring a recycleBinItem if the ID of the original driveItem is known.
Microsoft 365 Archive is previewing support for SharePoint Embedded to a limited number of customers. You can sign up for the private preview today.

SharePoint Embedded migration APIs are now available in the beta Microsoft Graph endpoint.
driveItem: invite has clearer documentation on restrictions for the root item of drives in OneDrive for home, and inviting new guests by using app-only access.
driveItem: copy has clearer documentation on behaviors around metadata, versions, cross-geo operations, and known issues.
New cmdlets for consuming tenant administrators to add, remove, or change container membership were added to the SharePoint Embedded Containers Management Shell.

fileStorageContainerType APIs are now available in the beta Microsoft Graph endpoint.
fileStorageContainerTypeRegistration APIs are now available in the beta Microsoft Graph endpoint.

driveItem: copy now supports the childrenOnly and includeAllVersionHistory request parameters in the v1.0 Microsoft Graph endpoint.

The default limit for container types that a partner tenant can create is now 25. For more information, see Limits and Calling Patterns.
The SharePoint Embedded agent switched to a consumption-based model for all users, whether they have a Copilot license. For more information, see SharePoint Embedded agent.
The guidance for granting admin consent to a SharePoint Embedded application now uses URL-based admin consent. For more information, see Grant admin consent.
Documented an exceptional access pattern for operations that may require a user license. For more information, see Handle operations not exposed through Graph.