Hi @Jayashri Thorat ,
Per my understanding, currently the lookup columns support the limit of more than 5000. I would suggest you consider reducing the number.
Here is a similar post for your reference:
Lookup column agains list with more than 5000 posts
And you could go to SharePoint UserVoice to make your suggestions:
Lookup on lists over 5,000
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Test in my end:
Thanks for your understanding and support. :)
Have a nice day!
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