Prerequisites:
Folder share doesn’t work by default in CentOS VM, we have to install VMTools manually to make folder share work .
Note:You can reinstall VMware tools by following following steps to fix copy paste issues also.
Installing VMtools manually:
Read official article this or follow the steps below:
Click VM>Install/Upgrade VMware Tools.

Switch to root user (You can use sudo also). To switch, use the below command and on prompt provide root password.
su -
create the mount point:
mkdir /mnt/cdrom
Mount the cdrom to the folder created
mount /dev/cdrom /mnt/cdrom
Untar the vmware-tool tar file:
On mounting the CDROM the vmwaretools-version,tar.gz file will be available. Extract this to any location. I am extracting it to tmp. use ‘ls /mnt/cdrom‘ to see the correct file name of the vmwaretools tar file. Replace VMwareTools-version.tar.gz with correct file name
tar -zxvf /mnt/cdrom/VMwareTools-version.tar.gz -C /tmp/
Unmount the CDROM:
To avoid conflicts
umount /dev/cdrom
Install Vmware tools:
Goto the extracted folder and execute vmware-install.pl
cd /tmp/vmware-tools-distrib ./vmware-install.pl
Now shutdown the VM:
Goto VM>Settings>Options>Guest Isolation:
Un-check both the check-boxes ( disable drag and copy functionality)

Close VMware workstation:
Open VMware workstation and navigate to VM>Settings>Options>Guest Isolation (For the target VM)
Check both the check-boxes we recently disabled ( enable drag and copy functionality)
Star your VM:
Try copy paste: Copy paste from host to guest and guest to host should work
Drag and drop : from linux to window is not supported, so it won’t work
Enable Folder share:…………………………………………..
As drop down don’t work , we can use folder share as a work around
For this to work we have to manually install VMware tools and we have seen how to do it.
Now goto VM>settings>options>shared_Folders
Select always enabled
Choose the folder you want to share from the host system
See shared folder in VM:
The shared folder will be available through below mount point:
cd mnt/hgfs
Now what ever files you keep in the shared folder in the host system can be accessed through /mnt/hgfs
were hgfs stands for host guest file system (HGFS) (Just a name)