Once you start creating a bunch of layers, you wind up with a long scrolling list in your Layers panel, and it gets hard to quickly find a particular layer in the bunch. So, we do the same thing here for keeping things organized that we do with documents on our computer—we put them into a folder. Folders in the Layers panel are called layer groups, and to add some layers to a folder, first press-and-hold the Command (PC: Ctrl) key, then go to the Layers panel and click on all the layers you want put into the folder. Next, click on the Create a New Group icon (it looks like a folder) at the bottom of the panel (as shown above left; or just press Command-G [PC: Ctrl-G]), and it puts all those selected layers into their own folder (well, a “layer group,” if you will. As seen above center). This really helps keep your Layers panel tidy (and keeps you from scrolling endlessly). By the way, you’ll notice that when you create the folder it’s collapsed, so you don’t see the layers inside it. If you want to get to the layers inside, just click on the little right-facing arrow to the left of the folder’s name and it expands (as seen above right), so you can access all the layers.
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