A Playlist is user defined list of songs.
There are three types of playlists available in iTunes:
Static: where the user manually manages the songs in a list.
Dynamic: where the songs in the playlist are determined by specific rules.
Genius: where the songs in the playlist are automatically generated based on a single seed song.
The user manually manages the songs in a list.
Select New Playlist from the File menu (or click the [+] button at the bottom left).
Name the Playlist.
Click on the Music library and drag and drop Songs, Albums, Artists to the playlist.
Songs in the playlist are determined by specific rules, and the playlist is updated automatically as new songs are added that match the rules.
Select New Smart Playlist from the File menu (or Shift-click the [+] button at the bottom left).
Name the Playlist.
Right-click on the playlist and select Edit.
Create one or more rules to determine what songs appear in the playlist, and click OK.
You cannot edit the contents of a Smart playlist directly, since which songs appear is driven by the rules you set up.
The songs in the playlist are automatically generated based on a single seed song.
Click on the Music library.
Choose a song, and click on the Genius icon in the bottom right (or right-click and select Genius).
Select how many songs you want in the playlist in the top right.
Clcik the Save Playlist button and name the playlist.