A new drive does not have to be bigger than the old one. When the used space is well below the capacity of the spare SSD, Windows 11 can move to it with every file, program, and setting intact.
This guide explains how to measure the space that really has to fit, how to shrink the partition that blocks the copy, and how to clone the system drive to a smaller target with Qiling Disk Master.
A smaller target works only when the used space, the EFI partition, and the recovery partition all fit inside it. Confirm the numbers before you begin, because the clone stops when the target runs out of room.

Add the used space and the hidden partitions, then leave the reserve on top. If the total still fits the new drive, the clone will succeed; if not, free space or shrink volumes first.

Windows can shrink a volume only up to the last immovable file. When the shrink stops early, turn off hibernation and the system restore points, then try again.
Qiling Disk Master copies a Windows drive to a smaller SSD and adjusts the partition layout during the same task. The destination must be empty, so move anything you need off it before you start.
Watch the video tutorial below to clone the drive step by step with Qiling Disk Master.
Step 1. Open Qiling Disk Master, choose Clone, and then select Disk Clone.

Step 2. Select the Windows 11 system disk as the source and click Next.

Step 3. Select the smaller SSD as the destination and confirm that its data will be replaced.

Step 4. Drag the slider to fit the partitions on the smaller drive, keep the EFI and recovery volumes, and tick Optimize for SSD.

Step 5. Click Proceed, wait for the copy to finish, then shut the machine down before you remove any cable.

If Windows stops with a boot device error, the boot files may sit on a partition that did not fit. Reconnect the original drive and review the layout with How to Clone Windows 11 with the System Reserved Partition.
Yes, if the used space leaves room for updates. Keep at least 20 GB free after the copy.
It stops once the destination has no space left. Shrink the source volume and try again.
Yes. A disk clone copies the registry and activation data along with the files.
No, as long as the EFI partition is part of the copy. A disk clone takes it automatically.
Yes. The interface does not matter, only the capacity and the connector of the target.
Shrinking and copying a system drive carries risk. Create a full system backup first, so a failed clone costs nothing but time.
Watch the video tutorial below to back up Windows and restore it if the clone fails.
Step 1. Open Qiling Disk Master and select System Backup to include the boot partitions.

Step 2. Save the image to a drive other than the target disk and start the backup.

Step 3. Click Proceed to start the system backup and wait patiently until it finishes. You can also tick Shut down the computer when the operation is completed to power off automatically.

Step 4. If the smaller drive will not start, restore the image to the original drive and try again.

A move to a smaller SSD is a matter of arithmetic and preparation. Add the used space to the EFI and recovery partitions, leave a fifth of the drive free, and shrink C: until the layout fits. Then clone the whole disk, fit the partitions on the destination, and set the new drive first in the boot order.
For more on space planning, see How to Clone Windows 10 to a Smaller SSD, How to Clone a Hard Drive to a Smaller SSD, How to Clone Only the OS Partition to a New SSD, and Replace C Drive with SSD for Windows 11/10/8/7.