To create a dynamic website menu with Strapi, an open-source Node.js based headless CMS, start by creating sections and links within those sections. Then, build the menu by adding components such as dropdowns, menu links, and buttons to a main menu zone. Configure the menu's data by allowing public access to it through settings and making API requests to retrieve its configuration. With Strapi, you can create a flexible system for building out menus dynamically, showcasing its capabilities as a rising star in the CMS space.