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In Microsoft Word, you can make a form field mandatory by using text form fields. This ensures that users cannot bypass required fields without inputting information. In the tutorial, Legacy Tool form fields are used to create a Benefit Election form. To make a field mandatory, double-click on the text form field and access its properties window. This allows you to set the field as required, prompting users to input information before moving on. Instructions on how to enable the Developer tab are also provided in the video.