Understanding Document Libraries vs. Folders in SharePoint
This page helps you manage files smarter in SharePoint by explaining when to create a new library versus a simple folder.
What Is a Document Library?
A document library is like a dedicated filing cabinet—secure, organized, and easy to search across devices.
Pros:
Unique metadata, templates, versioning, and permission settings
Supports large volume of files
Files are indexed for quick search
Folders vs. Libraries
Feature | Folder | Document Library |
|---|---|---|
Permissions | Can be broken per-folder | Set per library |
Metadata/Templates | No | Yes |
Versioning Control | Inherits library setting | Library-configured |
Visibility in Search | Yes, always | Can be turned on/off |
Document Templates | No | Yes |
Compliance Labels | No | Yes |
When to Choose What
Want different access levels or compliance? → New Library
Need templates or specialized metadata? → Library
Just grouping related files? → Folder inside an existing library
Best Practices
Limit to a few libraries per site—too many gets confusing
Use folders to organize within each library
Avoid breaking permission inheritance too deeply—can complicate security