The previous tutorial explained how to create folders in Hotmail; in this tutorial, we will show you how to create subfolders. The ability to add a subfolder in Hotmail was only offered in the latest wave of updates ("Wave 4") by Windows Live in 2010. From that point on, you can create folders as usual, and make folders appear under that folder. This tutorial explains how to add a subfolder in your email account.
Make a sub-folder in your Hotmail account
Once signed in to your Hotmail account, go to your inbox and follow these steps:
- Move your mouse pointer (cursor) above the "Folders" link in the left pane: as soon as you do, Windows Live will show a "gear" icon - click on that gear button, and a submenu will open: choose "Add a new folder":

- Hotmail Tip: you can also create a new subfolder (this is the quickest way) by scrolling down at the very bottom of your folder listing, and clicking on the "New folder" link you will see displayed right above "Quick views":

- Hotmail will then redirect you to the same screen we've seen and used when trying to create a regular email folder: under "New folder", type the "Folder name" inside the relevant text field, as shown on the screenshot below:

- Now, notice that Hotmail shows a "Create in" dropdown menu below the text field: click on it, and choose in the listing the folder in which you want to create the new subfolder: click on the "parent folder" you want to use.

- Once you have entered the name of the new subfolder (and double-checked it for any typo!), and chosen a parent folder in which to create the subfolder, click on the "Save" button in the toolbar at the top:

- Once you do, several things will happen: first, Hotmail will bring you back to the "Email Folders" screen, where you will see your new subfolder appear "indented" to the right and below its parent folder:

(The indenting of the subfolder in the listing will be more obvious in your case, since our starting the name of the parent folder name with several underscores characters make it seem appear indented as well.) - You can now click on the "Inbox" button to return to your email messages.

And this is all you need to do to create a subfolder inside your Hotmail account!
Hotmail Tip: Windows Live Hotmail allows you to create subfolders inside "custom folders" you have created yourself, but it is also possible to add a subfolder to the standard email folders ("Inbox", "Junk", "Drafts", "Sent", or "Deleted").
