Are there times when you just wish all your desktop icons would disappear? Of course, using Windows would be tricky without them but once you have more than a dozen or so desktop icons your screen gets cluttered.
Thankfully there is a way to temporarily hide desktop icons to give you a cleaner screen. What’s more, it’s very easy to do!
Hide icons in Windows XP
In XP, you need to right-click on any space on your desktop. Select Arrange Icons By, then uncheck the option that says Show Desktop Icons. To display the icons again, just repeat the same procedure.

Hide icons in Windows 7
The procedure for hiding icons is very similar in Windows 7. Right-click on the desktop and choose View, then go to Show desktop icons to uncheck it. Again, you repeat the same process to turn the icons back on.

Related programs
DeskSweeper: Allows you to show or hide icons even more easily, placing an icon in the Windows system tray that lets you toggle desktop icons on and off.
DeskDuster: This program actually lets you schedule icons to hide themselves after a given period of PC inactivity. This way, you can ensure that your computer looks clean, even when you’re not there!

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Personally, I have used Fences by Stardock for a long time now and it is FREE for personal use. Simply put you create and name boxes, (fenced off from each other), on your desktop to put your icons in. You then just double click anywhere on your desktop to make the boxes/icons appear/disappear. There is also a "QuickLinks" box which does not disappear to put the programs you use the most in. I have 8 boxes - Programs - Video Programs - Image Programs - Audio Programs - Mobile Apps - Recent Things - Web Links - Folders, Files and Documents. Fences is a great solution for keeping an uncluttered desktop and for finding programs quickly with a simple double click.
Absolutely agree with FoyleFlyer. Fences is a much better program to tidy your desktop.
Ko da je izmislio vrucu vodu!
It's actually easier to use the Stardock program, ObjectDock. It allows adding individual program icons or to set up folders of your personal choice in groups of shortcuts and it will also autohide leaving the screen clear of any icons. I prefer to have screenshots to look at.
Also it's free!