Microsoft 365: Groups, Teams, and Distribution Lists — Which to Use
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By Kerry · Updated 03/04/26 10:56 PM
Microsoft 365 has several ways to group people together and they overlap in confusing ways. Here's a plain-English guide to which one to use when.
Distribution List (DL)
What it is: An email alias that forwards to multiple people.
Example:
[email protected] sends to everyone in the company.
Use when: You need to send announcements or newsletters to a fixed group and don't need any collaboration features — just one-way or simple email communication.
What it doesn't do: No shared files, no calendar, no Teams chat. Just email.
Microsoft 365 Group
What it is: A full collaboration hub that includes a shared inbox, shared calendar, shared SharePoint document library, and a Planner board — all in one.
Use when: A team of people need to work together on an ongoing basis — sharing files, scheduling meetings, and communicating. A Microsoft 365 Group is automatically created in the background when you create a new Microsoft Teams team.
What it does: Email to the group address goes to a shared inbox all members can see. Files go to SharePoint. Meetings go to a shared calendar.
Microsoft Teams
What it is: The interface you work in — chat, meetings, channels, and file sharing. Behind the scenes, Teams is built on Microsoft 365 Groups.
Use when: Your team communicates frequently, has ongoing projects, holds video meetings, or needs a persistent place for organized conversations.
What it does: Real-time chat by channel, video meetings, file sharing (stored in SharePoint automatically), and integrations with other apps.
SharePoint Site
What it is: A document management and intranet platform for storing and sharing files.
Use when: You need a central repository for documents that teams access — policies, procedures, shared resources, client files.
What it does: Stores files with version control, access permissions, and search. Every Teams team has an associated SharePoint site where its files live.
Quick decision guide:
"I want to email a group of people" → Distribution List
"I want a team that works together on files and has meetings" → Microsoft Teams (creates a Group and SharePoint automatically)
"I just need a shared place to store documents" → SharePoint site
"I need a shared inbox that multiple people can access and reply from" → Shared Mailbox (not a Group — contact us to set one up)