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The Drag & Drop method is already known to many people from PC or the Android user interface. It roughly means drag and drop. To create a folder with this method, at least 2 apps must be provided for a folder.

Android 11 | MIUI 12.0
Step 1: Tap and hold an  App
Step 2: Drag the  App  onto another
Step 3: Release the  App  to create a folder
  1. Tap and hold an App
  2. Drag the App onto another
  3. Release the App to create a folder
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Xiaomi Instructions