In AutoCAD Mechanical toolset, you can select an external reference (xref) component or folder, and copy its definition to the current drawing.
All instances of this xref component or folder become local components or folders and the associative link with the source drawing is removed.
In some cases, a drawing may contain an xref assembly, that contains xref parts from another drawing (nested xref components). Use the mechanical browser or structure catalog to:
Similarly, xref folders that nest xref folders from other drawings can be localized using the Localize all option.
Sometimes, the current drawing may have a local part or assembly that has the same name as the xref component you are localizing. In such a case, AutoCAD Mechanical toolset displays the Rename dialog box. You can resolve the conflict (by renaming the component being localized) or end the localization operation. The same principal applies to folders that are being localized.