A subfolder is a folder that is located within another folder on a computer or digital storage system. It helps organize files and other folders in a hierarchical structure, making it easier to manage and locate information. For example, a main folder called Documents might contain subfolders for Work, Personal, and Projects. Subfolders can be created to categorize files based on specific themes or purposes. This organization allows users to keep related documents together, improving efficiency when searching for files. By using subfolders, individuals can maintain a tidy and structured digital workspace.