I deleted an important Outlook 2010 Contacts folder by mistake.  How can I recover it. It shows up in deleted folder in outlook. I use Window 7.

Just drag & drop the folder from your Delete Items to where you want it to have. You can also right click on it and choose Move Folder.

I can see the deleted folder when in Contacts folder list when I try add a new folder and a box appears it shows the deleted folder. I cannot select deleted folder nor can I drag/drop or undelete it. Can you please tell me how to drag and drop and in which window. Please provide step by step instructutions from opening outlook so that I am very clear what to do. I don't want to lose the folder. Thank you very much.

Switch your Navigation Pane to the Folder List Navigation (CTRL+6).
You should now see all folder types and be able to move the folder out of the Deleted Items folder.
You can then switch back your Navigation to the Mail Navigation (CTRL+1) or Contacts Navigation (CTRL+3).

Outstanding solution.  I've been searching for 1/2 day to restore a contacts subfolder I accidently deleted.  Could see in delected folder through the "properties" file size but couldn't get to the data.  I tried the solutions I found elsewhere & they didn't work.  Your suggestion worked great.

Best regards

Rockin!  This worked like a charm.  Had a client who just did that, and this fix helped out greatly.  Good on ya Roady!

 Two of the main problems I see are data duplication and data purges of calendar and contact items. Using built-in Deleted Item Retention of Microsoft Exchange you can recover those lost items with ease using a Microsoft Outlook client. Prior to Outlook 2010 you could add a registry key to your computer to enable the use of Recover Deleted Items from any folder in your mailbox, including non-mail items folders. However if your using Outlook 2010 you will not find the Recover Deleted Items button when you click on a non-mail items folder, whether you have the registry key or not. Using the instructions below you can add the Recover Deleted Items icon to the Folder section of your Ribbon for all folders regardless of the data they contain.

The Recover Deleted Items icon is in the Folder section when you are in a mail item folder.

When you are viewing a non-mail item folder (calendar, contacts, etc) the Recover Deleted Items icon is no longer available. If the contact Mr. John J Doe was Shift-Deleted or purged by your mobile client (I have seen it more times than I can count) how would you get it back?

With Outlook 2010 open click the File Ribbon tab then click the Options button.

On the right-hand side add a New Group under the Folder main tab. You can rename it after it is created.

Change the Choose commands from: to All Commands. Scroll down and select the Recover Deleted Items option then click the Add > > button to add this option to your newly created custom group.

You will now see your new group and the Recover Deleted Items icon in the Folder tab on all folders.

If you were to click the button you will see that you have access to any purged/shift-deleted items from that folder.

If you use the recover option you will see that your item has now been returned.