An improved method and system for client-side caching that transparently caches suitable network files for offline use. A cache mechanism in a network redirector transparently intercepts requests to access server files, and if the requested file is locally cached, satisfies the request from the cache when possible. Otherwise the cache mechanism creates a local cache file and satisfies the request from the server, and also fills in a sparse cached file as reads for data in ranges that are missing in the cached file are requested and received from the server. A background process also fills in local files that are sparse, using the existing handle of already open server files, or opening, reading from and closing other server files. Security is also provided by maintaining security information received from the server for files that are in the cache, and using that security information to determine access to the file when offline.