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NLTK can be used with XLS files in the following steps:

1. First, the XLS file needs to be converted into a format that NLTK can read. This can be done by converting the XLS file into a CSV file using a spreadsheet software.

2. Once the XLS file is converted to CSV format, it can be imported into NLTK using the pandas library. Pandas is a powerful data analysis library that can read and write data in various formats, including CSV.

3. After importing the CSV file into pandas, the data can be cleaned and preprocessed before applying any natural language processing techniques using the NLTK library.

4. NLTK can be used for various natural language processing tasks such as tokenization, part-of-speech tagging, sentiment analysis, and more.

5. Finally, the results from NLTK can be exported back into the CSV file format for further analysis or visualization.

Overall, NLTK can be a powerful tool for working with text data in XLS files or any other format.