From plain text to a real document
Text files are quick to write but cannot hold headings, fonts, pictures or page layout. Converting text to Word gives you a .docx document where you can style headings, add a logo, insert tables and pictures, check spelling, and then print or submit it.
What happens when you convert
Every line of the .txt file becomes a paragraph in the Word document, blank lines are kept as empty paragraphs, and tab characters become four spaces. Empty lines at the very end are removed. The result opens in Microsoft Word, Google Docs, WPS and LibreOffice.
Making the document look good
After converting, select headings and apply Word's Heading styles, use Find and Replace to tidy double spaces, and add page numbers and a title page if needed. Word's styles also create an automatic table of contents for long documents.
Common problems and how to fix them
Every line of a paragraph is separate: the text file had hard line breaks — use Word's Find and Replace to join lines. Indian-language text looks wrong: save the text file as UTF-8 first. Code or tables lose alignment: change the font of those paragraphs to Consolas or Courier New.
Good habits
Clean the text first with Trim Text Lines, keep the original .txt file, and save the formatted document under a new name.