Below is the Powershell script to Enable Folder creation option on Document Library. [System.Reflection.Assembly]::LoadFile("C:\Program Files\Common Files\microsoft shared\Web Server Extensions\16\ISAPI\Microsoft.SharePoint.Client.dll")| Out-Null [System.Reflection.Assembly]::LoadFile("C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\16\ISAPI\Microsoft.SharePoint.Client.Runtime.dll")| Out-Null function Get-SPOAllWeb { param ( [Parameter(Mandatory=$true,Position=1)] [string]$Username, [Parameter(Mandatory=$true,Position=2)] $AdminPassword, [Parameter(Mandatory=$true,Position=3)] [string]$Url ) $ctx=New-Object Microsoft.SharePoint.Client.ClientContext($Url) $ctx.Credentials = New-Object Microsoft.SharePoint.Client.SharePointOnlineCredentials($Username, $AdminPassword) $ctx.Load($ctx.Web.Webs) $ctx.Load($ctx.Web) $lists = $ctx.web.Lists $list = $lists.GetByTitle("Underwriting")