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To create a drop-down list in Excel, start by inputting the items you want in a separate sheet. Then, select the cells where you want the list to appear and go to Data Validation. Choose "List" for the allow option and click on the source button to select the items. Alternatively, you can type the items directly, separated by commas. You can also use named ranges. Once done, you can easily select items from the drop-down list. Give it a try!