Excel Trick: Dynamic Cell Highlighting with Drop Down

This tutorial you will learn how to dynamically highlight cells based on a drop down list selection using Conditional Formatting in Excel.
🎯 Example Setup Let's say we have the following student data in A1:B6:
📋 Goal: We will create a drop down list in C2 to filter and highlight students based on their selected grade.

✅ Steps to Implement Conditional Formatting Based on Drop down Selection:
🏷️ Step 1: Create a Drop down List
1️⃣ Select cell C2. 2️⃣ Go to Data → Data Validation (or press Alt, A, V, V). 3️⃣ In the Allow field, choose List. 4️⃣ In the Source field, enter: A,B,C 5️⃣ Click OK.
💡 Now, C2 has a drop down list with values A, B, and C.

🎨 Step 2: Apply Conditional Formatting
1️⃣ Select the Grade column (B2:B6). 2️⃣ Go to Home → Conditional Formatting → New Rule... (or press Alt, H, L, N). 3️⃣ Choose "Use a formula to determine which cells to format". 4️⃣ Enter the formula: =B2=$C$2

This checks if the grade in column B matches the selected grade in C2.
The $ symbols make the reference to C2 absolute, so it doesn’t change when applied to other cells. 5️⃣ Click Format, choose a Fill Color, and click OK. 6️⃣ Click OK again to apply the rule.

🧪 Step 3: Test the Drop down
1️⃣ Select a grade from the drop down list in C2. 2️⃣ The matching Grade cells (B2:B6) will be highlighted based on the selection.
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