Here’s a couple of methods for hiding a particular file or folder in Windows for free and without downloading any dodgy software. Both methods should work in XP, Vista and Windows 7.
There are two methods in this guide, one is quick and easy but should only be used to hide files from less tech-savvy people, the other- more fiddly but more secure as a result!
The first thing to do for either method is to place your folder in a less obvious directory than “My Documents”, for example, think about putting it in your drive root C:\, or Windows “Program Files” folder. It will do no harm to your system settings but will be the last place a regular computer user would think of looking.
Method 1
Now that you have moved your folder and files to an out of the way location we can set it to Hidden in Windows. To do this, right click the file and choose Properties.

On the General tab, check the Hidden box in the Attributes section.

Click on OK. Your file or folder should no longer be visible, if it is follow these steps.
From your desktop click on My Computer, and from the menu click on Tools and then Folder Options.

Click on the View tab and choose the radio button that says “Do not show hidden files and folders” under the Hidden Files and Folders section.

Click OK to save the changes. Your folders/files should now be hidden from view. If you want save to it in the future the easiest way is to specify the file path to it when you wish to save a file. This would look something like this:
C:\Program Files\Yourhiddenfolder\filename.jpg
Method 2
1. As in method 1, right click on the file or folder that you want to hide, then select Properties
2. In the dialog box that appears, select the Customize tab, then Change Icon at the bottom of the box

3. Select a blank area as the icon for the folder/file. Press OK
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4. Back in the main dialog box click Apply, then OK.
5. That’s the icon hidden, now lets do something about the filename. Right click your folder, this time select Rename.
6. Click the filename box and type the following into it using the numeric keypad on your keyboard:
Alt+255
7. This should have erased the name of the folder.
8. It will now be completely invisible- to anyone looking at your files it will be just a white gap. To help locate it so that you can read/write from it, press F5 to refresh the screen. A file image will flash for a brief moment before disappearing. To use the file simply right click it and give it a name!

Hey, the ptoblem here is a really keen peeker can find out hidden files and unhide them. Another approach that could be added is to use hiding softwares. There are quite a few of them. Ones with password protection would be better. Some details here – How to hide files in windows