Creating a folder takes three clicks in Outlook

A folder in Outlook is a container that holds your emails, separate from your main inbox. You create one by right-clicking on "Folders" in the left sidebar, selecting "New Folder", typing a name, and clicking OK. The folder then appears in your list and you can move emails into it by dragging them or selecting them and choosing "Move".

Folders help you organize emails by project, person, or topic so you can find them later without scrolling through hundreds of messages. Unlike labels or flags, which mark an email but leave it in your inbox, a folder actually moves the email somewhere else — though Outlook remembers it and search still finds it.

The steps differ slightly depending on whether you use Outlook on the web, Outlook on your computer, or Outlook on your phone, but the idea is the same in all three.

Key Takeaways

  • Right-click the word "Folders" in your left sidebar, then select "New Folder" to start creating one.
  • Type a clear name for your folder — something like "Project Alpha" or "Vendor Quotes" — then press Enter or click OK.
  • Move emails into your new folder by dragging them from your inbox or by selecting them and clicking the move button.
  • Folders are permanent storage, not temporary marks; once you move an email into a folder, it no longer appears in your inbox unless you move it back.

Creating a folder on your computer

Open Outlook on your desktop or laptop. Look at the left side of the screen where you see "Inbox", "Sent Items", and "Deleted Items" — that area is your folder list. At the top of that list, you will see the word "Folders" with a small folder icon next to it.

Right-click directly on the word "Folders". A small menu will pop up with several options. Click "New Folder". A dialog box will appear asking you to name your folder. Type the name you want — for example, "Client Invoices" or "2024 Taxes" — then click OK or press Enter. Your new folder now appears in the list below "Folders" and is ready to use.

If you do not see "Folders" in your sidebar, click the folder icon at the bottom left of Outlook. This toggles the folder view on and off.

Creating a folder in Outlook on the web

Log into your email account at outlook.com or outlook.office.com. On the left side, you will see your inbox and other folders. Below your main folders, look for a button that says "New Folder" or shows a plus sign next to "Folders". Click it.

A text box will appear where you can type your folder name. Type what you want to call it, then press Enter. The folder is created when ready and appears in your list. You can now drag emails into it or right-click an email and choose "Move" to send it to your new folder.

If you cannot find the "New Folder" button, look for three dots (called an ellipsis) next to the word "Folders" and click that instead. A menu will open with the option to create a new folder.

Creating a folder on your phone or tablet

Open the Outlook app on your phone or tablet. Tap the folder icon at the bottom of the screen (usually labeled "Folders"). You will see your inbox and other folders listed.

Look for a plus sign or a button labeled "New Folder" near the top of the folder list. Tap it. A text field will appear asking for a folder name. Type the name you want, then tap "Create" or "Done". Your new folder is now ready to receive emails.

On some phones, you may need to tap three dots or a menu icon to find the "New Folder" option. The exact location depends on your phone model and which version of the Outlook app you have installed.

Moving emails into your new folder

Once your folder exists, you can put emails into it. The easiest way on a computer is to click and drag: click an email in your inbox, hold the mouse button down, drag it over your new folder name in the left sidebar, and release. The email moves into that folder.

If dragging does not work or feels awkward, right-click the email instead. A menu will appear. Look for an option that says "Move" or "Move to Folder". Click it, then select your new folder from the list that appears. The email is now in your folder.

On the web or on your phone, select the email by clicking or tapping the checkbox next to it, then look for a move button (often an arrow or folder icon). Tap or click it and choose your folder from the list.

Organizing folders into subfolders

As you create more folders, you may want to organize them into groups. You can create a subfolder — a folder inside another folder — by right-clicking an existing folder instead of right-clicking "Folders" itself. Select "New Folder", name it, and it will appear nested under the folder you right-clicked.

For example, you might create a folder called "Clients", then create subfolders inside it called "Client A", "Client B", and "Client C". This keeps your sidebar from becoming too long and groups related emails together.

On the web or phone, the process is the same: find the folder you want to put a subfolder into, look for a menu or plus sign next to it, and select "New Folder".

Renaming or deleting a folder

If you create a folder and later want to change its name, right-click the folder and select "Rename". Type the new name and press Enter. The folder keeps all the emails inside it — renaming does not affect what is stored there.

To delete a folder, right-click it and select "Delete Folder". Outlook will ask you to confirm. Be careful: deleting a folder also deletes all the emails inside it, and they go to your Deleted Items folder. You can recover them from there if you act quickly, but after you empty Deleted Items, they are gone for good.

On the web or phone, look for a menu icon (three dots) next to the folder name to find rename and delete options.

Frequently Asked Questions

Can I create a folder inside a folder?

Yes. Right-click the folder you want to put a subfolder into, select "New Folder", name it, and click OK. The new folder appears nested under the original one. You can create multiple levels of subfolders this way, though keeping it to two or three levels makes them easier to find.

What happens to emails when I move them to a folder?

They leave your inbox and appear only in the folder you moved them to. They are not deleted or copied — they are moved. Search still finds them, and you can move them back to your inbox anytime by dragging them or using the move option again.

Do folders work the same way in Outlook on my phone as on my computer?

The basic idea is the same, but the steps look different because phone screens are smaller. Creating a folder, moving emails, and renaming folders all work on your phone, but you tap instead of click and use menu buttons instead of right-click menus.

Can I share a folder with someone else?

Sharing folders depends on your email account type and Outlook version. In Outlook on the web with a work or school account, you can sometimes share a folder by right-clicking it and selecting "Share". Personal Outlook.com accounts have limited sharing options. Check your account settings or contact your email administrator to learn what is available for your account.

What is the difference between a folder and a label?

A folder moves an email out of your inbox to a separate location. A label (or flag) marks an email but leaves it in your inbox. Outlook uses folders, not labels, though some email services like Gmail use labels instead. Folders are better for long-term storage; flags are better for temporary reminders.