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In this tutorial, the Excel Replace Function is explained. The presenter emphasizes starting with practical application to understand the function better. The Replace Function allows users to substitute part of a text string with a different text string. To utilize it, users begin by entering the equal sign followed by "REPLACE." The first parameter required is the "old text," which is the existing text that needs modification. The tutorial proceeds to demonstrate how to implement this function effectively in Excel, focusing on applying the function while explaining its parameters and usage in practical scenarios.