SharePoint Document Sets vs Lists vs Folders: When to Use Each

If you’ve ever stared at a messy SharePoint library wondering whether to start with folders, build a list, or go all in with Document Sets, you’re not alone.

I’ve worked with organisations that spend weeks (sometimes months) building elaborate folder structures, only to realise they’ve created a maze that no one can navigate. The funny thing is, most people don’t even know that Document Sets exist, let alone when to use them. And that’s a shame, because they’re one of the most powerful—and under-used—features in SharePoint.

This post will break down the differences between Lists, Folders and Document Sets, share when each one shines and give you some real-world examples of how they can transform the way your team works.

Spoiler alert: Document Sets are my personal favourite. I’m always looking for reasons to implement them. If I can put metadata at the folder level, you can bet I’ll do it—because why wouldn’t you make search, reporting and automation smarter from the start?

First, Let’s Define Them

Folders

• The most basic way to group files in a document library.
• They don’t share metadata—each file needs to be tagged individually.
• Too often leads to “folder sprawl”—deep hierarchies where documents get buried six clicks down.

When they work: Small teams, small document sets, and quick-and-dirty file organisation.

Lists

• Used for storing structured data like asset registers, contact lists, or help desk tickets.
• Built for sorting, filtering and creating custom views—not document management.
• You can attach documents to a list item, but it’s clunky compared to using a library.

When they work: Tracking data without needing document versioning or heavy collaboration.

Document Sets

• A special content type in a document library that behaves like a “super folder.”
• Allows you to apply shared metadata to every document inside.
• Can have their own workflows, version history and even a customised welcome page with instructions or links.
• Can be pre-templated with subfolders and starter documents.

When they work: Perfect for projects, cases, campaigns—anything where documents need to be grouped together, consistently tagged and managed through the same process.

Why Document Sets are a Game-Changer

I first became a big fan of Document Sets while working with a legal firm that needed a smarter way to manage client case files. Each case could generate hundreds of documents—court submissions, contracts, correspondence, research notes—and every one of those needed to carry the same key information:

• Case number
• Client name
• Matter type
• Status

Before Document Sets, they were trying to do this with standard folders. The result? Inconsistent metadata, missing tags, and search results that were almost useless. If someone searched by client name, they’d only get the documents that had been tagged correctly—leaving big gaps.

By switching to Document Sets, we:

1. Applied metadata once at the Document Set level and had it cascade to every document.
2. Created templates so each new case folder came with pre-built subfolders and documents (e.g. “Pleadings,” “Evidence,” “Correspondence”).
3. Added workflows to handle approval and status changes automatically.

It transformed case management from a filing nightmare into a structured, searchable system that supported compliance and made reporting effortless.

Another Popular Use: Project Management

Project work is another place Document Sets really shine. In one project-based organisation I worked with, each project generated drawings, contracts, meeting notes, reports and sometimes marketing collateral—all of which needed to be kept together, tagged with the project code, client, stage and project manager.

We set up a Project Document Set template that automatically included:

• “Contracts” folder
• “Designs” folder
• “Reports” folder
• A preloaded project charter document

With the right metadata in place, we could:

• Search across all projects for “Contracts” in seconds.
• Create dashboards showing projects by stage or status.
• Feed that data into Power BI for executive reporting.

And because the metadata was set at the Document Set level, there was no risk of files being missed or incorrectly tagged.

Refer to the step-by-step Scribe guide at the end of this post on how to create a Project Management Document set.

Why I’m Always Championing Document Sets

I’ll admit it—I have a soft spot for metadata. To me, it’s the secret sauce of SharePoint and Document Sets are the closest thing to metadata magic you’ll find.

Here’s why I champion them every chance I get:

• Consistency: No more relying on users to manually tag each document.
• Searchability: One tag at the Document Set level means everything inside is instantly discoverable.
• Process alignment: You can design them around your actual business processes instead of forcing processes to fit folder chaos.
• Scalability: What works for one project, case, or campaign can easily scale across hundreds.

The only downside? Many organisations don’t know they exist, and fewer still know how to design them properly. That’s why I’m always on the lookout for opportunities to introduce them—because once a team sees them in action, there’s no going back.

When to Use Each: My Quick Decision Guide

Use Case	Best Option	Why
Tracking structured data without files	List	Lightweight, fast, and perfect for managing data like registers, inventories, and schedules.
Simple grouping of a few files	Folder	Fine for small sets of documents where metadata isn’t critical.
Bundling related documents with shared metadata and workflows	Document Set	Ideal for cases, projects, campaigns, or scenarios where documents need to be managed together with consistency.

Final Thoughts

If your team is struggling with messy libraries, the first step is knowing when to use a List, a Folder, or a Document Set. Get that decision right, and you’ll save time, reduce frustration and set your organisation up for better automation and reporting.

If you’ve never used Document Sets before, try piloting them in one library—maybe for a single project team or department—and see the difference. The combination of structure, metadata and workflow is hard to beat.

And if you’re anything like me, you might just find yourself looking for any excuse to use them.

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