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We have three lists in modern SharePoint:

  1. Company:

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  1. Employee: Used lookup on Industry column

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  1. Database: Used lookup on Employee and Industry column

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Question: How can I show only those employees which are belonged to specific company while adding new item in Database? Example: If I select CTS as company then only A employee should be visible in Employee column dropdown.

As per current lookup, all the employees are visible in all the companies while adding new item. enter image description here

Note: Modern SharePoint does not support any external scripting file.

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  • Can you use PowerApps? If so check this link
    – Sandro
    Oct 1 '20 at 13:42
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If you want to create a cascading dropdown in modern experience, you will need to use PowerApps like Sandro said.

For classic experience, you can insert a java script to get it done or use InfoPath (not recommended).

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