TL;DR:
This feature allows you to change the colour of new and existing folders in OneDrive and SharePoint. There are 16 pre-set colour options. Available now.

Details:
This update is part of Microsoft’s ‘personalisation and organisation’ changes for OneDrive and SharePoint. Initially, OneDrive folder colours will only appear in the My Files view.

When creating a new folder, the colour option will default to the current yellow:



Right-click to change the colour of existing folders:



The option to change an existing folder’s colour will also surface when renaming a folder:


Availability:
Due late August to October 2023.
Available now.

Source, related links, and references:
MC670439.
Microsoft Roadmap ID 124980.

Page originally published:
4th September 2023 and kept up to date.

Want to know what else is late, new, and coming soon across M365 and Teams this month? Check out the latest roundup.