How to Create a Folder in Outlook
Create mail folders and subfolders in classic Outlook, new Outlook, and Outlook on the web, then decide when to use a folder versus a category.
Right-click your mailbox name or the Inbox in the folder pane and choose New Folder (classic Outlook) or Create new folder (new Outlook and Outlook on the web), then type a name and press Enter. The exact wording and menu location shift a little between versions, and mail apps also give you a second, non-exclusive way to organize messages: color-coded categories instead of, or alongside, folders.
Create a folder in classic Outlook for Windows
Classic Outlook (the traditional desktop app with the full ribbon) puts folder creation on a right-click menu in the left-hand folder pane.
- In the folder pane, right-click your mailbox name at the top to create a top-level folder, or right-click Inbox (or any existing folder) to nest a new one inside it.
- Select New Folder from the context menu.
- Type a name in the Name box.
- Confirm the folder is set to contain Mail and Post Items, and check that the “select where to place the folder” location is correct.
- Press Enter, or click OK.
You can also reach the same dialog from the ribbon: Folder tab > New Folder, or with the keyboard shortcut Ctrl+Shift+E.
Create a folder in new Outlook for Windows
New Outlook (the streamlined app Microsoft has been rolling out as the eventual replacement for classic Outlook) drops the ribbon-based folder tools and moves everything into the folder pane itself.
- In the folder pane on the left, right-click your email address at the top, or hover over it and click the More options (
...) icon that appears. - Choose Create new folder.
- Type a name for the folder and press Enter.
To nest a subfolder under an existing one, right-click that folder (or use its own More options menu) and choose Create new subfolder instead.
Create a folder in Outlook on the web
Outlook on the web (Outlook.com and the browser version of Microsoft 365 email) uses the same folder-pane pattern as new Outlook.
- Scroll to the bottom of the folder list in the left pane and select New folder, or right-click Folders (or an existing folder) and choose Create new folder.
- Type a name and press Enter.
For a subfolder, right-click the parent folder and select Create new subfolder, name it, and press Enter.
Folder creation by version, at a glance
| Outlook version | Where to start | Menu command | Subfolder command |
|---|---|---|---|
| Classic Outlook (Windows) | Right-click mailbox name or Inbox | New Folder | Right-click the parent folder, then New Folder |
| New Outlook (Windows) | Right-click your email address, or its More options (...) | Create new folder | Right-click the folder, then Create new subfolder |
| Outlook on the web | Bottom of the folder list, or right-click Folders | New folder / Create new folder | Right-click the parent folder, then Create new subfolder |
Moving mail into folders vs. using categories
A folder is a storage location: each message lives in exactly one folder at a time, the same way a file lives in one spot on a hard drive. A category is a colored label you can apply on top of that; a single message can carry several categories at once, and categorized mail stays wherever it already is unless you move it separately.
To move a message into a folder, drag it onto the folder in the pane, or right-click the message and choose Move > pick a folder (in classic Outlook, Ctrl+Shift+V opens the same “Move to folder” picker). Categories, by contrast, are assigned from the Categorize button or right-click menu and are best used for cutting across folders, for example tagging urgent messages or a specific project regardless of which folder they end up in.
| Situation | Better tool | Why |
|---|---|---|
| Archiving finished threads out of the Inbox | Folder | Physically moves clutter out of the main view |
| Flagging messages from one client across several folders | Category | One label, findable everywhere without relocating mail |
| Routing invoices automatically as they arrive | Folder + rule | Rules move mail into folders on delivery |
| Marking “needs reply today” without losing the message’s context | Category | Keeps the message in place while marking urgency |
Folders and categories are not an either-or choice. A common setup is a small set of folders for where mail lives (by project, by client, or an Archive) plus a handful of categories layered on top for status or priority, so you get both physical organization and quick filtering. If you are also managing Outlook’s other timing features, see how to schedule an email in Outlook and how to recall an email in Outlook once messages are already sorted the way you want.
Start with two or three folders you will actually use, rename or delete anything you create by mistake the same way you made it (right-click > Rename or Delete Folder), and add categories only once you notice you are searching for the same type of message across multiple folders.