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In this tutorial, Ella Lima demonstrates how to add a letterhead in MS Word. To do this, go to the insert tab and click on picture to browse and insert your letterhead. Adjust the size of the image by right-clicking and selecting size and position, making both height and width 100%. Set text wrapping to behind text and position the image horizontally centered and relative to the page. This ensures the letterhead fills the entire page in your Word document.