Creating a subdomain on the same droplet (xyz.mydomain.com)

Hello,

I’m using one droplet and would like to create different subdomains for my different applications. For example, I’d like to use xyz.mydomain.com for my xyz app and store everything related to that application in that domain like the webpage and php files etc. Creating a new droplet and pointing ip address is the easiest way but I don’t want to do that.

I’ve checked numerous tutorials and questions but I don’t think I’ve found what I’m looking for. In my previous hosting companies, I was just creating a folder www and everything was fine. I couldn’t figure out how to do this in digitalocean.

Thank you very much for your assistance.