You can create a new folder in Explorer by right clicking or using the menu. Create a New Folder on the C: drive 1. Highlight the C: drive icon 2. In Win8.1 and 10, select Home/New/Folder in XP and 7, select File/New/Folder. 3. Rename "New Folder" Create a folder within a folder 1. Highlight folder icon. 2. Select Home/New/Folder or File/New/Folder. 3. Rename "New Folder" RIGHT CLICK OPTION A new folder can be created by right clicking the drive or folder and selecting New/Folder. In Win7, 8.1 and 10, right clicking works in both left and right Explorer windowpanes. In XP, right clicking only works in the right windowpane. NEW FOLDER ON THE DESKTOP To create a new folder on the desktop, right click the desktop and select New/Folder.