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In this tutorial, the speaker demonstrates how to replace a background using Photoshop Elements 2018. The process starts by selecting a photo to edit and navigating to the guided edits section, specifically the "Replace Background" option. The tutorial highlights an automatic selection feature, where users can draw a box around the desired area for selection, which the software then outlines with "marching ants." After selecting the subject, the next step is to choose and import a new background image. This technique is particularly useful for showcasing Halloween costumes by adding fun backdrops to photos.