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Is it possible to connect iTunes playlists to folders so that playlists update automatically when I add new song to a folder?

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OK, I see the problem with my first answer. Working on a revision. – Daniel Sep 10 '11 at 13:23
up vote 1 down vote accepted

Yes, but you don't do it within iTunes. If you want the song files you drop into a particular folder to automatically be added to an iTunes playlist, you use Automator to create a folder action like this one: enter image description here

You start Automator, and create a Folder Action. You select the folder you want as the source of files. Then, the action is "Import Files into iTunes" at which point you select the playlist to which you want the songs added. Then you save the Folder Action.

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Hmmmm... Did everything like you said, but still does not work. When I put new song in a folder, the song does not show in the playlist. – Arthur Sep 10 '11 at 13:15
Sorry, wrong action. I changed it to "Import Files into iTunes". It should work now. – Daniel Sep 10 '11 at 13:27

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