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To sort unsorted drop-down list items in alphabetical order, you can use a simple technique involving formulas. The tutorial starts with an example list of office items and explains three types of drop-down lists. By applying a formula to rank each item's alphabetical position, you can create a new sorted list. The process involves using a match formula to arrange the items alphabetically. The result is that even an unsorted list can present its items in proper alphabetical order within the drop-down menu, enhancing organization and accessibility without manually sorting the original list.