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Color coding folders in Google Drive is a feature that allows users to visually organize their files more effectively. By assigning different colors to folders, users can easily distinguish between various projects, subjects, or categories at a glance. This can enhance productivity and improve file management, especially for those who manage numerous documents or collaborate with others.

The ability to color code folders is available to all users, regardless of whether they have a free or paid account, and it applies to both personal and shared documents. This feature can be accessed by right-clicking on a folder and selecting the "Change color" option, which presents a palette of colors to choose from. This simple customization enhances the user experience and helps in keeping the Google Drive interface organized and intuitive.