Google has previously offered support for handling Office files through Gmail by importing them into Google Drive, but today, the company announced via the Google Workspace Updates blog, that it is dramatically streamlining this process and will now let you make edits to Office files sent as attachments directly in Gmail (via The Verge).
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The feature will allow you to view and edit Office files sent or received in Gmail using Docs, Sheets or Slides. Compatible files will open with a single click in Gmail and will then retain the original file format when saved rather than converting to Google’s format. You can even simply reply to the email directly from within the document through the File menu. This is a huge win both in terms of time-saving and ease of collaboration between Office and Google Workspace users. The feature will be activated by default and begin rolling out today. It should be complete within 15 days. This will be available to all Google Workspace and G Suite users with the exception of Google Workspace Essentials and Enterprise Essentials customers.