If you’re using New Outlook, you’ll be delighted to hear that Microsoft has finally given us back the option to choose the order of our folders instead of forcing them into alphabetical order. As someone who’s been eagerly waiting for New Outlook custom folder order to return, I’m thrilled to show you exactly how to organise your email folders the way you want them.
Why This Feature Matters for New Outlook Users
When Microsoft first rolled out New Outlook, one of the most frustrating changes was that all email folders were back to being arranged in alphabetical order!
Classic Outlook had (finally) given us the functionality to manually arrange our folder around 2010.
It felt like a real step backwards to discover it had been removed. Returning us to the need to add characters at the beginning of the folder name to force it into the order we wanted.
Fortunately, Microsoft has listened to user feedback and restored this essential functionality.

How to Rearrange Folders in New Outlook
The process is refreshingly simple once you know how to do it. When you create folders in New Outlook, they’ll initially appear in the order you created them. To rearrange them into your preferred order, follow these steps:
Step 1: Select Your Folder Find the folder you want to move. You can click on it if you’d like, though it’s not strictly necessary.
Step 2: Drag and Drop Click, hold, and drag the folder to your desired position. You’ll see a line appear between existing folders – this shows you exactly where the folder will be placed when you release your mouse.

Step 3: Watch for Accidental Subfolders Be careful if you see a folder becoming highlighted during the drag process. This means you’re about to create a subfolder rather than simply reordering. If you see highlighting, adjust the mouse position until you see the line indicator instead.
Creating Intentional Subfolders
Of course, you might actually want to create subfolders to better organise your emails. This drag-and-drop method works perfectly for that too. Simply drag one folder onto another, and it becomes a subfolder. You can create multiple levels of organisation this way, putting frequently used folders exactly where you need them.
Fixing Folder Organisation Mistakes
Made an accidental subfolder? Don’t worry – it’s easily fixed. Simply click and drag the misplaced folder again. I recommend positioning it underneath a top-level folder, or if you want it back at the main level, scroll up and place it underneath your mailbox name. Just double-check the positioning before releasing your mouse to ensure it goes exactly where you want it.
Things to Keep in Mind
When changing the order for your Outlook folders:
- You can only move one folder at a time
- The click and drag requires a bit of precision when positioning folders
Tip: Neither of these things is new, it’s the same in Outlook, whether you’re sticking with Classic or have moved to New.
Making the Most of Your Email Organisation
Now that you can arrange folders in your preferred order, I recommend putting your most frequently used folders at the top of the list. This simple change can save you time throughout your working day, as you won’t need to scroll through every alphabetical folder to find what you need most often.
Whether you prefer grouping by project, priority, or frequency of use, you now have the flexibility to organise your New Outlook folders in whatever way works best for your workflow.
Written with the help of Claude AI from an original transcription.
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