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I would like to convert SharePoint List in the form of drop down, so that I can change another connected list based on item click/selected in drop down list.

  • It is not referring to the navigation drop down menu.
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In SharePoint Online modern experience, you can connect two lists web parts based on common column & perform dynamic filtering.

For more information, check below documentation:

Connect web parts in SharePoint

Note:

  1. This is a SharePoint out of the box (& easy) solution. So it will not give you a dropdown with list items.
  2. You can edit the list web part of first list to show only one (common) column which will help you to show both web parts side by side properly.
  3. If you want to have the dropdown & filter another list based on it, it is not possible out of the box in SharePoint Online modern experience and you have to develop custom SPFx solution for this.
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  • Please Upvote(^) and accept as an Answer if it helped you any way & it will help others with similar question in future to find the correct answer easily. It also removes this question from "Unanswered questions" list. Jul 21 at 7:48

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