Files 4.0.39 has arrived, and it brings two features that Windows 11's File Explorer still lacks: a fully customizable toolbar and native file tagging. The update, released on March 15, 2025, is the latest from the open-source file manager that has been steadily chipping away at Explorer's dominance.

The toolbar customization is the headline act. Users can now add, remove, and reorder buttons on the toolbar with a simple right-click. Want a one-click shortcut to extract archives? Done. Prefer a button for launching PowerShell instead of Command Prompt? No problem. The toolbar supports over 50 commands, from basic operations like copy and paste to advanced actions like opening a folder in a new tab or changing the layout. This level of flexibility is something Microsoft has never offered in File Explorer, even after the Windows 11 redesign.

But the real game-changer is file tagging. Files 4.0.39 introduces a tagging system that works across NTFS drives without requiring third-party databases or cloud sync. Tags are stored as alternate data streams, meaning they survive file moves and renames within the same volume. Users can assign multiple tags to a file, then search or filter by tag directly from the toolbar. The implementation is clean: a new "Tags" column in Details view, a tag editor in the properties pane, and keyboard shortcuts for quick tagging. For professionals managing hundreds of documents, this alone could justify the switch.

Why Tags Matter

Microsoft has dabbled with tags before. Windows 7 had a half-baked tagging system in the Details pane, but it was removed in Windows 8. Windows 11's File Explorer has no native tagging at all. Third-party tools like TagSpaces and Tabbles exist, but they require separate databases or cloud accounts. Files' approach keeps everything local and transparent. Tags are indexed by Windows Search, so they appear in Start menu searches and Explorer's own search box. This is a significant productivity boost for anyone who organizes files by project, client, or priority rather than folder hierarchy.

Customization That Makes Sense

The toolbar customization goes beyond simple button toggles. Users can create custom toolbars for different folders—a developer might have Git commands on their code folder toolbar, while a designer sees image conversion tools in their graphics folder. The settings are per-folder, not global, which adds a layer of contextual intelligence that Explorer lacks. You can even add separators and submenus to keep things organized. For power users who live in the file manager, this reduces mouse clicks and keystrokes dramatically.

Under the Hood

Files 4.0.39 also includes several performance improvements. The app now launches 20% faster than version 4.0.38, thanks to optimized caching of folder thumbnails. Memory usage has been reduced by about 15% when browsing large folders with thousands of files. The developers have also fixed a long-standing bug where network drives would sometimes fail to mount on wake-from-sleep. These may not be flashy features, but they address real pain points that daily users encounter.

The Bigger Picture

Files has been gaining traction since its early days as a UWP app. Version 4.0 marked a complete rewrite in .NET 8, moving away from UWP to WinUI 3 for better performance and broader Win32 API access. The project now has over 40,000 GitHub stars and a dedicated community of contributors. Microsoft's own PowerToys team has taken notice—some Files features, like tabs and dual-pane view, have inspired similar additions to PowerToys' own File Explorer add-ons.

But the question remains: why can't Microsoft deliver these features natively? The company has been slow to modernize File Explorer, despite Windows 11's emphasis on productivity and design. The Windows 11 2024 Update finally added tabs, but still lacks tagging, customizable toolbars, or even a proper dark mode for all dialogs. Files fills these gaps with a polished, native-feeling interface that respects Windows design language.

Compatibility and Caveats

Files 4.0.39 requires Windows 10 version 2004 or later, or Windows 11. It's available via the Microsoft Store, GitHub releases, or winget. The tagging feature works only on NTFS drives—FAT32 and exFAT are not supported. Tags also don't sync across devices unless you use a third-party sync tool that preserves alternate data streams, which most don't. Users should also note that tags are not visible in File Explorer itself; they only appear within Files. That's a limitation, but one that's inherent to the design choice of using ADS rather than a separate index.

Verdict

Files 4.0.39 is a strong update that addresses two of the most requested features in any file manager. The toolbar customization is a productivity multiplier, and the tagging system is implemented with the kind of thoughtfulness that Microsoft should have shown years ago. For power users and professionals who spend hours in file managers, Files is no longer just an alternative—it's a better option. Whether you switch entirely or keep it as a companion to Explorer, this update makes a compelling case for giving Files a permanent spot on your taskbar.