What does “That’s what she said” mean?
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It is a colloquialism for “that is exactly what I said.” For example, suppose you were to say, “I’ll meet you at the bar at 8:00.” If someone else says, “That’s what she said,” then they are saying that it is exactly what you said.
It is an American colloquial joke phrase which is popular on the Internet. It is a phrase used to make a play on words that insinuates a risqué comment on a situation when an explicit comment cannot be made.