Previously I used File > New > New Module > Import .JAR/.AAR Package
but the option to Import .JAR/.AAR Package from the New Module wizard has been removed on Android Studio 4.2 and following the document which suggests using the Project Structure Dialog reveals no clear answer for importing .AAR module and seems to be outdated
I tried adding the module as a dependency in the project Structure but it did not work
From Android Studio package manager select project:
Then make a new directory in project level named libs
Now right click the libs and select Reveal in finder and then paste here your .aar file.
Now in Build.gradle(Module) add the following implementation.
and snyc your project.
Answered By – Hafiza