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If the word that is underlined is actually spelt correctly it has been underlined because it does not exist in the dictionary.

You can choose to add it to the dictionary.

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If you choose "Ignore All" then Word will not highlight this word again in this document.

If you choose "Add" it will be permanently added to the dictionary and will never be underlined again.

(Tools > Options)(Spelling & Grammar tab)

Custom Dictionaries

In the dictionary luist, select the dictionary you want to modify and press Modify

Click Add for each word or abbreviation you wish to add.

You can also create a brand new dictionary, just for a specific purpose. Click New.

There is another way that is quicker though and that is to use the shortcut menu.

Every word that is not recognised is underlined in a squiggly red line

If you right mouse click on this word or abbreviation, you can select "Add to Dictionary"