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In Google Sheets, there are several ways to insert images into the spreadsheet. The first method is inserting the image on top of the spreadsheet, not within a cell. The second method is placing the image inside a cell. The third method involves using a function for dynamic usage. To insert an image, go to the Insert menu and select Image. This allows you to insert images over cells, by taking a snapshot, entering a web address, or selecting from albums. The tutorial demonstrates inserting images from Google Drive for a visually appealing spreadsheet.