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In this Excel tutorial, the instructor explains how to use the Replace function in Microsoft Excel. The video covers the parameters of the function and how to implement it effectively. The Replace function is designed to replace part of a text string with a different text string. The instructor demonstrates applying the Replace function in cell B2, highlighting the process by starting with an equal sign followed by "RE" to access the function. The first parameter required is the "old text," which is the existing text from which a replacement will occur. The tutorial aims to provide a comprehensive understanding of how to utilize this function in Excel.