The laboratory tests of rock specimens show that transient creep, at which deformations increase with time whereas strain rate decreases occurs when creep strains are sufficiently small. Since plate tectonics only permits small deformations in the lithospheric plates, the creep of the lithosphere is transient (non steady state). In this work, we study how the rheology of the lithosphere that possesses elasticity, brittleness (pseudo plasticity), and creep affects the folding in the Earth's crust. Folding is caused by horizontal com pression that results from the collision between the lithospheric plates. The effective viscosity characterizing the transient creep is lower than in the case of a steady state creep and depends on the characteristic time of the considered process. The allowance for transient creep gives the distribution of the rheological properties of the horizontally compressed lithosphere in which the upper crust is brittle, whereas the lower crust and mantle lithosphere are dominated by transient creep. It is shown that the flows that arise in the lithosphere due to the instability under horizontal compression and cause folding are small scale. These flows are con centrated in the upper brittle crust, they determine the short wave Earth's surface topography, penetrate into the lower, creep dominated crust to a shallow depth, and do not penetrate into the mantle. Therefore, these flows do not deform the Moho.