You can use the following steps to create a new Contacts folder in your Outlook data file. While I don't recommend using Contacts folders as a filter for your Contacts because it makes it harder to manage the contacts, it can be helpful to sort contacts using two or three folders.
I recommend using Categories, not Contact folders, to sort contacts. Use Custom views, Group by Category view, and Instant Search to find contacts.
To create a new Contacts folder
- Right-click on your Contacts folder
- Choose New folder
- Type a name for your folder (1)
- Verify the folder type is correct (2)
- Verify the parent folder (3)
- Click OK to create the Contacts folder
You can select any folder as the parent folder. If you want the new folder to be at the same level as the Inbox, Calendar, Contacts, Outbox, etc, select the top of your data file or mailbox.
To enable the folder as an Address Book
- Right-click on the new folder
- Choose Properties
- Select the Outlook Address Book tab
- Verify the option to use the folder as an address book is selected
You can right click on any folder and choose New folder but the folder will default to a subfolder of the selected folder and be the same folder type. You'll need to remember to choose the folder type and select where you want the folder to be created.
Create and set a Contact folder as an Address Book
If the box to enabled contacts as an address book is grayed out, see Contacts are missing when you click the To button.