To change the way text wraps around your image, select the image, click the Text Wrapping button on the Picture toolbar, and click one of the options in the list that appears.
The Square option wraps the text in a square shape around the image.
The Tight option wraps the text right up to the outside edges of the image. This option only works with images that have irregular boundaries, such as the clip art image shown here.
INTRODUCTION
Word gives you several options for controlling how text flows around your image. In this task, you see examples of the five most common text-wrapping options. Keep in mind, however, that you can always drag an image around your document regardless of the text wrapping option you choose (refer to "Moving and Sizing an Image" earlier in this part).
The Behind Text option doesn't wrap the text at all; the image is sent behind the text so that the text flows over the image.
The In Front of Text option also doesn't wrap the text; the image appears in front of the text so that the text is not visible behind it.
The Top and Bottom option wraps the text above and below the image, but not along its sides.
TIP
The Through Text-Wrapping Option
The Through text-wrapping option is the same as Tight , but text will also flow through any open areas inside the image.