How can we create dependent picklist in salesforce?

Hi Prachi,

A dependent picklist is a custom or multi-select picklist for which the valid values depend on the value of another field, called the controlling field. Controlling fields can be any picklist (with at least one and fewer than 300 values) or checkbox field on the same record.

To create it use following

1. From the management settings for the object you want to add a field to, go to Fields.Custom task and event fields are accessible from the object management settings for Activities.
2. Click Field Dependencies.
3. Click New.
4. Choose a controlling field and dependent field.
5. Click Continue.
6. Use the field dependency matrix to specify the dependent picklist values that are available when a user selects each controlling field value.
7. Optionally, click Preview to test your selections. If your organization uses record types, choose a record type to test how it affects your controlling and dependent picklist values. The record type controls what values are available in the controlling field. The record type and the controlling field together determine what values are available in the dependent picklist. For example, a dependent value is only available if it is available in the selected record type and the selected controlling value.