The VLOOKUP function in Google Sheets allows users to look up data in a table and return a value from another column. To use VLOOKUP, users need to organize their data, select an output cell, enter the VLOOKUP function with search_key, range, index, and is_sorted parameters, and execute the function. The function can be adjusted for more complex datasets by using wildcard characters, FALSE to get exact matches, or automation tools in Google Sheets. Additionally, users can use INDEX/MATCH formula for advanced functionality and troubleshoot errors by making VLOOKUP case-sensitive. With practice and experience, users can master the VLOOKUP function to efficiently manage data in their spreadsheets.