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In this video tutorial, the speaker demonstrates how to create a table of contents in a Word document. They start by adding random text using the rand() command and then proceed to add headings for the table of contents. They explain the different levels of headings, such as level 1, level 2, and level 3. To add a table of contents, the speaker instructs to assign styles to the headings, such as "Introduction" as a level 1 heading.