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While walking around and scrapping all of the clutter around Sanctuary, I noticed that some items highlight as yellow, and others as green.
From what I can tell, green objects are movable and reusable (ex. Chairs, cabinets, etc.) and yellow just seems like junk with no function (ex. Tree trunks, cars, etc.).

Is there any other meaning/function to the highlight color of these objects, or can I just scrap everything that is yellow?

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    Random guess, green items can be crafted/stored/moved but yellow ones can only be scrapped? – l I Nov 12 '15 at 15:08
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That seems to be the only difference. Items with a green trim can be picked up, moved, and placed in the settlement, or stored in the workbench for later use (note: it seems you can only store items that you can build yourself from scrap. Some items can be moved/placed and functionally used, but not stored, such as white picket fences). Items with yellow trim are simply for salvaging materials, and their names occasionally imply this, as they are often "ruined" items (ruined house, broken toilet). Yellow items are also not movable in workshop mode, which also supports that they don't have any real use in the settlement.

It seems safe to scrap anything with a yellow outline, with maybe a couple of exceptions. If you scrap a container (such as mailboxes), you might want to make sure it is empty first, or you'll have to retrieve the contents from the workshop inventory later. Or, perhaps, if you wanted to keep any trees that remain upright in the settlement, don't scrap it for wood.

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    If you do scrap a non-empty container, its contents will be moved to your workshop's inventory, so you'll have to fetch those stimpacks and radaways from there. – Nolonar Nov 12 '15 at 15:34
  • @Nolonar, that's good to know. I always kind of wondered where that stuff went. Looks like I have some goodies to retrieve when I play later. – Broots Waymb Nov 12 '15 at 15:40
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    While (as far as I've seen) all green items can be moved, not all green items can be stored. Some green items cannot be created and cannot be stored, but they can be moved. The different white picket fence pieces are the most numerous example of this. It bothers me a lot since I can't make more but I also can't store the ones I'm not using, so I just have a bunch of fence sitting around in a pile in a corner of my settlement. – Lawtonfogle Nov 12 '15 at 18:25
  • @Lawtonfogle Good point. I believe only the green items you can create from scrap can be stored at the workshop, and if you try to place that item later, it will place that stored item instead of using materials. For items like the white picket fences, you can move and place them and they can be functional in your settlement, but cannot be stored. – king14nyr Nov 12 '15 at 18:29
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Yellow items cannot be moved, cannot be rebuilt, and are essentially just scrap (but you can keep them around for aesthetic value if you like).

Green items can be scrapped just like yellow items but can also be stored and rebuilt. An important thing to note though is that you can only store them if you've "unlocked" them. For example, Sanctuary has several picket fences and initially you can only move or scrap them, but you can find a magazine that allows you to not only store them but to also build new ones.

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Yellow items are only for scrapping, as that is their only function. They cannot be moved. Green items can be moved and stored, but not all of them can be stored. A perfect example is Trees (Yellow, can only be scrapped for 15-30 wood) and Turrets (Green, can be scrapped, moved and stored). I really hope this helps!

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