SharePoint 2010 .htm files prompts user to download the file

Issue Description

When the user click on a .htm file in SharePoint site , user will be prompted to save the file rather than the file opening in the browser.

Solution

1) Open Central Administration -> Manage web applications -> Select web application -> General Settings

2) Web Application General Settings -> Browser File Handling ->Strict. Change this to Permissive

Workaround

Rename your files with .aspx extension (*.aspx)