Renaming files in SharePoint or Teams modifies the display name while preserving the file itself, its metadata, and its location. Within both platforms, files reside in SharePoint libraries behind the scenes, making the renaming process fundamentally the same. You do this directly within the document library view in SharePoint or the "Files" tab within a Teams channel, without needing traditional file check-out; changes reflect immediately for collaborators, though syncing might cause brief delays.

For example, if a project report draft named InitialDoc.docx is stored in a project site's "Shared Documents" library, you can right-click it in SharePoint Online or the Teams "Files" tab and select "Rename" to update it to ProjectReport_Final_v2.docx. Power Automate flows can also automate bulk renaming tasks, such as adding department codes to all files uploaded by the Finance team (Finance_ prefix).

Renaming is simple and preserves the item's history and permissions, aiding organization and clarity. Key limitations include potential breaking of deep links or bookmarks using the old name and temporary sync delays when using OneDrive Sync. Ensure you have edit permissions (contribute level or higher) to rename files to avoid accidental modification conflicts within collaborative environments.