How to Create a SharePoint Folder – Step-by-Step Guide (2025)

Struggling to find files in a cluttered SharePoint library? Creating a folder in SharePoint can solve this by organising content and managing permissions. Here’s how to create a SharePoint folder via four different techniques, step by step. 

So, let’s proceed:

• Why Create a Folder in SharePoint?
• How to Create a SharePoint Folder?
  • #Method 1: Modern SharePoint
  • #Method 2: Classic SharePoint
  • #Method 3: Use File Explorer
  • #Method 4: PnP PowerShell
  • #Method 5: Bulk-Create Folders
  • #Method 6: Microsoft Graph PowerShell
  • #Method 7: CSOM
• Best Practices for SharePoint Folder Creation
• Author’s Verdict
• Quick FAQs

Why Create a Folder in SharePoint?

Creating a folder in SharePoint helps users to:

• Group related files for easier organisation.
• Support retention policy in SharePoint.
• Help team members quickly find documents.
• Set unique permissions on specific folders.
• Prepare migration-ready structures if you plan to migrate SharePoint site to another site or tenant.
• Reduce search time and improve productivity.
• Folders synced through OneDrive make selective downloads simpler.
• Archive SharePoint site or completed projects without cluttering active workspaces.

How to Create a SharePoint Folder?

Creating a folder in SharePoint is a quick task, can be done via the SharePoint UI. Here are the methods to do so:

#Method 1. Create a Folder in Modern SharePoint

Follow these steps to create a folder in a modern SharePoint document library:

1. Navigate to your SharePoint site.
2. Open the Document Library for folder creation.
3. Click + New in the command bar.
4. Select Folder.
5. Enter a Folder Name.
6. Click Create.
7. Adjust Permissions if needed:
   • Select the folder.
   • Click … (More options) > Manage Access.
   • Share or restrict access as required.

#Method 2. How to Create a SharePoint Folder (Classic)

Classic SharePoint pages still exist in some organisations. Here’s how to create a folder:

1. Open Classic Document Library.
2. Click Files in the ribbon.
3. Select New Folder.
4. Name your folder and click Save.
5. Update permissions if needed.

#Method 3. Use File Explorer

If you’ve synced the library with OneDrive:

1. Open File Explorer on your PC.
2. Navigate to the synced SharePoint folder.
3. Right-click and select New > Folder.
4. Name it and it will automatically sync back to SharePoint.

#Method 4. PnP PowerShell

You can make multiple SharePoint folders simultaneously using PnP PowerShell. Here’s how:

#Install the PnP module:
Install-Module PnP.PowerShell -Scope CurrentUser
#Connect to your SharePoint site:
Connect-PnPOnline -Url "https://mackjohn.sharepoint.com/sites/mackjohnSite" -Interactive
#Create a folder:
Add-PnPFolder -Name "ProjectA" -Folder "Shared Documents"
#Create a subfolder:
Add-PnPFolder -Name "Design" -Folder "Shared Documents/ProjectA"

#Method 5. Automate or Bulk-Create Folders

If you want scheduled automation or multiple folders:

$rows = Import-Csv "C:\folders.csv" # Columns: ParentPath,FolderName Connect-PnPOnline -Url "https://mackjohn.sharepoint.com/sites/mackjohnSite" -Interactive foreach ($r in $rows) { Add-PnPFolder -Name $r.FolderName -Folder $r.ParentPath }

Run this with Task Scheduler or Azure Automation to keep it automatic.

#Method 6. Use Microsoft Graph PowerShell

It helps in cross-tenant automation or integrating with other Microsoft 365 services:

$body = @{name="Reports2025";folder=@{};"@microsoft.graph.conflictBehavior"="rename"} | ConvertTo-Json
Invoke-MgGraphRequest -Method POST `
-Uri "https://mackjohngraph.microsoft.com/v1.0/sites/{siteId}/drives/{driveId}/root/children" `
-Body $body

#Method 7. CSOM (Only for Older On-Premises or Classic Sites)

Use only if you’re on SharePoint Server and can’t use PnP or Graph:

Add-PSSnapin Microsoft.SharePoint.PowerShell
$web = Get-SPWeb "http://yoursharepointsite"
$list = $web.GetFolder("Shared Documents")
$list.SubFolders.Add("OldMethodFolder")
$web.Dispose()

Best Practices for SharePoint Folder Creation

Follow these points for creating a folder in SharePoint hassle-free:

• Plan your folder structure before creating multiple levels.
• Microsoft recommends keeping folder paths under 400 characters.
• Use metadata and views instead of too many subfolders.
• Keep consistent naming conventions across teams.
• Regularly review the folder’s SharePoint Online permissions to prevent access issues.

With this checklist, you won’t face any type of issue throughout the creation. 

Author’s Verdict

A simple folder structure can make or break a SharePoint environment. After learning how to create a SharePoint folder, you’ll ensure that collaboration and data management are smooth. 

For larger projects or SharePoint Tenant to Tenant migration, consider using a dedicated SharePoint Migration Tool to keep your folder hierarchy intact.