How do you add a transition between two clips in Premiere Pro?

Adding a transition between two clips in Premiere Pro is achieved by using the Effects panel and dragging the desired transition effect to the intersection of the two clips on the timeline. This method allows for seamless integration of the transition within the edit, ensuring that it is precisely placed where the clips meet. The Effects panel contains a wide range of transitions, including fades, wipes, and 3D effects, which can enhance the visual storytelling of your project.

This approach is straightforward and efficient, as it leverages the intuitive drag-and-drop functionality that Premiere Pro offers. When the transition is placed correctly, it not only creates a smooth visual flow but can also be easily adjusted for duration or style by selecting the transition effect on the timeline.

The other options involve methods that do not effectively add transitions. Dragging from the Project panel relates to importing or organizing clips rather than creating transitions. Placing a new video track above does not integrate transitions between clips and complicates the project unnecessarily. Splitting and merging clips addresses editing techniques but does not pertain to the application of transitions. Thus, the selected method is the most effective and correct way to add transitions in Premiere Pro.