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In this video, we learn how to replace a part of a string with another using the replace function. We start with a string "hello there Philip" and change it to "hello there John" easily. The replace function requires the initial string, what to find, and what to replace it with. This can be useful for replacing placeholders like hashtags with names. It is a simpler alternative to using substring to extract and replace parts of the string. This function is handy when dealing with large sets of data, allowing us to quickly make multiple replacements in a string.