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• For the drop-down list from another workbook to work, the source workbook
must be open.
• The dropdown list created in this way won't update automatically when items
are added to or removed from the source list - you will have to modify the
source list reference manually.
How to make a dynamic dropdown from another workbook
To create a dynamic dropdown list from another workbook, define a formula
name in the source workbook using the OFFSET formula explained in Creating a
dynamic drop-down in Excel. In this case, a dropdown menu in another workbook
will be updated on the fly once any changes are made to the source list.
Searchable drop down list in Excel
In Excel 365, data validation lists have an awesome AutoComplete feature. To
speed up data entry in large lists, just start typing the target word in the dropdown
menu cell - the autocomplete algorithm will match the typed substring with the
dropdown list items and show you the found matches. As you type more
characters, the displayed list is narrowed down, and conversely, when you remove
characters, more matches are shown.