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In Excel, you can create dependent drop-down lists by selecting a category (e.g., "fruit"), which then displays a corresponding list of items (e.g., types of fruit). This setup pulls information from another sheet containing categorized lists, such as produce, fruit, and vegetables. To implement this, you use the Data Validation feature. First, select the cell to apply data validation, go to the Data tab, and choose Data Validation. For the main category, allow a list sourced from the "produce" category. For the dependent list, use the INDIRECT function referencing the cell (e.g., B2) to dynamically create a range based on the selected category. This method effectively showcases related items.