Smart Folders in macOS are a tool to help you organize and find your files. They’re not folders, as they don’t contain anything. They’re saved searches, and can save you a lot of time for searches you perform often.
For example, if you often open your downloads folder and sort by Date Added to find your recent downloads, you could instead make a Smart Folder called “Recent Downloads” which only contains files in your Downloads folder added there today, saving you a couple clicks each time.
You make them by defining the search criteria (i.e., all audio files on your drive) and them saving them as a smart folder you can put on your desktop or in Finder’s sidebar. They make use of Finder’s powerful search features that often go overlooked in favor of typing the name into Spotlight.
Making a Smart Folder
You’ll find the option for making Smart Folders under the “File” menu in Finder. You can get Finder to appear in the top menu bar by quickly clicking on your desktop.
This will bring up a familiar search dialog. You can click the + button on the right to add new search criteria.
You can add as many Smart Folders as you want, and by default, Finder will only pull out files that match all of the options you defined. If you want to change this behavior, you can hold down Option and click on the + button, which will change to three dots. This will group together a list of criteria, and you can choose from Any, All, and None.
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Source: How-To Geek