We use folders to organize files or items in SharePoint. We create folders in a SharePoint document library to organize and manage files. In this tutorial, I will explain how to create a folder in a SharePoint document library and show you how to disable folder creation options in a SharePoint document library.
You will get this requirement if you are working on any SharePoint development project. Here, let me explain in detail with an example.
Create a New Folder in SharePoint Document Library
Suppose you want to store policy documents for your organization like HR, WFH, and Travel policies-related documents. We can create folders to organize those documents in the SharePoint library.
For this, the first thing is you can create a SharePoint document library as “Policy Documents,”.
For this, open your SharePoint site, and from the home page, click on the + New button in the command bar and then click on the “Document library” option.

Then it will ask you to provide a Name and Description for the document library like below:

Now, you can see the SharePoint document library created like the screenshots below:

Now, we can create folders inside the document library. By default, creating folder option is enabled in SharePoint Online document libraries.
Follow the below steps to create folders inside a SharePoint document library. You can also follow The same steps in a document library in SharePoint on-premises versions.
1. Open the SharePoint document library and click on the + New button -> Folder in the command bar.

2. Next, it will ask you to enter a folder name. Then click on the Create button.

3. Once the folder is created in the SharePoint Online document library, it looks like the screenshot below:

In the same way, you can create multiple folders inside the same document library. You can see the document library with folders looks like below:

This is how to create a new folder in a SharePoint document library.
Disable folder creation in SharePoint
By default, folder creation is enabled in SharePoint, and sometimes, you may want to disable folder creation in SharePoint.
We can disable folder creation in SharePoint at the library level.
Follow the below steps to disable folder creation in SharePoint.
1. Open the SharePoint library or list. Then click on the Gear or Settings icon. Then, Select Library settings and click on the Advanced settings under the General Settings.

2. Then navigate to the Folders section and choose No option for “Make “New Folder” command available?”. Then click on OK.

Once you click on OK, when you open the SharePoint document library, and click on the + New button, you will not see the Folder creation option like below:

This is how to disable folder creation in SharePoint, and it works the same for both SharePoint lists and libraries.
Conclusion
I hope you got an idea of how to create a folder in a SharePoint list or document library to store and organize files or items. Also, I have explained how to disable folder creation in the SharePoint library or list.
You may also like:
- SharePoint Online List Web Part
- Document Library Web Part in SharePoint Online
- How to Search for documents in a SharePoint document library?
- How to share a SharePoint Online document library Files with external users?
- Pin a SharePoint Document Library to Quick Access

Preeti Sahu is an expert in Power Apps and has more than 6 years of experience working with SharePoint and the Power Platform. As a Power Platform expert for Power BI, Power Apps, Power Automate, Power Virtual Agents, and Power Pages, she is currently employed with TSinfo Technologies. She is the author of the book Microsoft Power Platform A Deep Dive. She also made a big technical contribution to SharePointDotNet.com in the form of articles on the Power Platform. She enjoys traveling and spending time with her family in her spare time.