M365 Changelog: (Updated) Folders and Rules Support for Microsoft 365 Groups in Outlook

MC422161 – Updated October 27, 2022: Microsoft has updated the rollout timeline below. Thank you for your patience.

With this release, users will have the ability to create folders and organize content inside Microsoft 365 Groups mailbox using Outlook on the web.

Groups users will be able to create folders inside the Groups section in Outlook mail module. Users can move and copy messages across different folders inside of the Group. Microsoft is also releasing support for Rules inside Groups mailbox. With rules, users can automate the organization of incoming Groups mails. Once users have created folders, they will be able to view and access the deleted folder of the Group.

This will be available on Outlook on the web. This message is associated with Microsoft 365 Roadmap ID 88864

When this will happen:

This feature is currently in preview and will begin full rollout in early September and is expected to complete rollout by mid-November (previously mid-October).

How this will affect your organization:

Admins have to enable this feature for their tenant for users to have access. Once it is available, Microsoft 365 Groups users in Outlook on the web will have the option to create folders and rules in Microsoft Groups mailbox.

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This feature is not available in Outlook Desktop clients, restricting move option will ensure all Groups message are available from Groups inbox. By default, move option is not restricted.


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 Admins can provide the option for Group owners to enable permissions for members to create groups, move, copy, delete messages and create/manage rules. Admins can use PowerShell command IsGroupMemberAllowedToEditContent to enable this option. Once this option is enabled, Group owners will get a toggle to enable or disable member permission at group level. By default, member permission toggle is not enabled for Admins.

What you need to do to prepare:

Since this feature is not enabled by default, Admins will have to enable the feature using Powershell Cmdlet (Set – OrganizationConfig -IsGroupFoldersAndRulesEnabled). Admins can release the feature and have additional controls to manage the feature using Powershell Commands:

  • Releasing the feature – Admins can release the feature using: Set-OrganizationConfig -IsGroupFoldersAndRulesEnabled
  • Restrict move option – Admins can restrict “move” option of Groups message using: Set-OrganizationConfig -BlockMoveMessagesForGroupFold

You may want to notify your customers about this new capability and update your training and documentation as appropriate.