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Mail users will now have more ways to reach out to friends and online contacts by trading messages with mobile phone users.
Mail gives users three options to communicate with contacts; namely, email, online instant messaging, and text messaging to mobile phone users.
Other key differences in the new email service include: how it lets users drag and drop email into folders, speeding up the process of sorting incoming messages.
Search features are also improved allowing users narrow down results to specific sender, folder, date, attachment type, or message status.
Plans to make its new and improved mail the standard option for all new users of the free service.
Meanwhile, existing users will be prompted to upgrade, although users of slower dial-up connections or those comfortable with Yahoo's 'classic' e-mail can continue to use the older version.