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The requirement is to edit the new item view on the SharePoint Online list and edit the word appears on the top which is New ItemNew Item

Note: I have tried by editing content type name and opened new item form with SharePoint designer but that approach did not help me.

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You can do it by creating a custom "New Form" via SharePoint Designer and there you can Change "New Item" to whatever you want

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Melad - this solution does not work if the form is customized with PowerApps. Do you happen to know of a way to accomplish the same thing with the form being customized with PowerApps?

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