How to Create a Folder in SharePoint

Whether you’re organizing project files, department documents, or collaborative workspaces, SharePoint makes it easy to structure content using folders, as long as you follow best practices for permissions, naming, and governance.

This guide walks you through the steps to create a folder in SharePoint Online or SharePoint Server, while offering key tips to ensure long-term usability and compliance in enterprise settings.

1. Navigate to the Correct SharePoint Library

Start by locating the document library where you want the folder to live. This could be:

• A Team Site (e.g., Marketing, HR, IT)

• A Communication Site

• A OneDrive-backed personal SharePoint site

• A Document Library within a Microsoft Teams-connected SharePoint site

To get there:

1. Open SharePoint Online via Office 365 or Microsoft 365 portal.

2. Click the appropriate site from the home page or site list.

3. Select “Documents” or the specific library where you want to organize your files.

2. Click “+ New” and Select “Folder”

Once inside the document library:

1. Click the “+ New” button at the top menu.

2. Choose “Folder” from the dropdown options.

3. In the pop-up window, enter a folder name that:
   • Is clear and specific (e.g., “Q2 Budgets” or “Client Contracts”)

   • Avoids special characters like / \ : * ? ” < > |

   • Follows your organization’s naming convention, if applicable

4. Click Create.

You’ll see the new folder appear immediately within the current directory.

3. Set Permissions (If Needed)

By default, folders inherit the permissions of the document library. If you need custom access:

1. Select the folder.

2. Click the “…” (ellipses) or right-click and choose “Manage access”.

3. Choose “Stop inheriting permissions” if needed.

4. Add, remove, or adjust access for individuals or groups.

Tip: Avoid overusing unique permissions, they can become hard to manage at scale.

4. Upload or Move Files into the Folder

You can now add content:

• Use drag and drop from your desktop

• Click “Upload” to add documents individually

• Select existing files and choose “Move to” to relocate them into the new folder

Folders support all file types permitted by SharePoint (Word, Excel, PDFs, images, etc.), and version history is automatically enabled by default.

5. Sync or Access via Microsoft Teams or OneDrive

Folders you create in SharePoint can also be:

• Synced to OneDrive for local access

• Accessed in Microsoft Teams if your SharePoint library is tied to a team

• Shared externally (with appropriate admin-level configuration)

This makes SharePoint folders a flexible foundation for document collaboration, compliance, and managing the content lifecycle.

Best Practices for SharePoint Folder Management

• Limit folder depth: Too many nested layers make content harder to find and search.

• Use metadata when possible: Consider combining folders with document tags or views for smarter filtering.

• Establish naming conventions: Consistency prevents confusion and supports automation or retention rules.

• Train users: Ensure your team knows how to create, organize, and access content securely.

Creating a folder in SharePoint is straightforward, but managing SharePoint content at scale requires a structured approach and effective strategy. With a few clicks and some best practices, you can maintain a clean, collaborative, and compliant digital workspace.