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In this tutorial, Ella Lima demonstrates how to add a letterhead in MS Word. Start by going to the insert tab and selecting the picture option to browse for your letterhead file. Adjust the size and position of the letterhead to fit the document by setting both height and width to 100%. Set the text wrapping option to be behind text and align the letterhead horizontally and vertically to be centered and relative to the page. This will ensure the letterhead fits the document borders correctly.