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When I was Sitting on the balcony, I saw my neighbour with his new girlfriend.
(I was sitting on the balcony)
I saw my neighbour with his new girlfriend who were sitting on the balcony.
(My neighbour and his girlfriend were sitting on the balcony)
TYPES
GERUND (ING)
--- it can replace any active tense, not just present
Who was that girl who was wearing that blue dress?