Highlight Active Cell in Excel is a feature that allows you to easily identify the currently selected cell in an Excel spreadsheet. When enabled, the active cell is visually distinguished from other cells by applying a distinct color or border to it. This feature is particularly useful when working with large data sets or complex formulas, as it helps you keep track of your current location within the sheet. By providing a visual indicator, Highlight Active Cell in Excel improves efficiency and reduces errors by minimizing the chances of editing or entering data in the wrong cell.