You've only got a limited amount of home screen space, and everything else goes in the app bin, right? Only you've got a few widgets, and those take up more space, and... Even if you're not an excessive app collector, you'll probably run out of space on your home screen.
Instructions (Most Android phones, not including the Galaxy S3):
1. To initiate a folder, you need to have two apps.2. To begin, grab one of those apps by long pressing and drag it over the top of the other.
3. Once you hover one over the other, a circle should appear around the bottom app.
4. With the circle showing, let go of the app you are holding onto.
5. This should create a circle (folder) with two apps in it.
This is pretty much the same way you do it on iOS devices like iPads and iPhones.
It's shown as screenshots below;
6. To access that circle (folder), simply tap on it and a mini-window appears with your apps in it.
7. You can drag and drop additional apps inside it if you’d like.
8. You can also rename your folder by opening it, tapping in the text area, and then typing a name.
It's shown as screenshots below;
Unlike iOS, Android doesn't infer a name for your new folder. They just keep it as "unnamed folder." And when your folder is unnamed, nothing displays as the name of your collection of apps. That's fine if you remember what they all are.
Instructions (Samsung phones, including the Galaxy S3):
1. Some Samsung phones have eliminated the quick drag and drop folder method.2. In order to create a folder, you can press Menu>Add Folder from a home screen.
*Or you can grab an app from inside the app drawer and look for an “Add Folder” option at the bottom of the screen. If that shows, drag your app there to have a folder created on your home screen.3. Once your folder has been created, you can drag and drop additional apps just like we did above.
Add Your Folder to the Home Row
You can also drag your folder onto your favorite apps on the bottom
of the Home screen on Android phones. That makes it two clicks to get to
the app, but Google conveniently demonstrates this for you by grouping
Google apps into a folder and putting it on your home row at the bottom.
Some Things You Cannot Do
Dragging order is important. You can drag apps onto other apps to
make folders. You can drag apps into existing folders to add to them.
You cannot drag folders onto apps. If you see your app running away when
you try to drag something on it, that may be what happened. The other
thing you can't do is drag home screen widgets into folders. Widgets are
mini apps that run continuously on your home screen, and they just
wouldn't run properly inside a folder.
Originally from droid-life.com and google.about.com