Microsoft Word’s Built-in OCR Feature
Can Word handle PNG text?  Yes, not directly, but it is possible using a trick. MS Word does not have the ability to read PNG files as editable content, but there is a way to make use of its tools to do PNG to Word conversion without downloading any additional software.

PNG-to-Word Workflow
To start the process, all you can do is to turn your PNG into a PDF using Print to PDF or a PNG file to Word converter.
Bring the PDF into Word for editing.
In Word go to File → Open and choose the PDF file.
Microsoft Word will automatically perform OCR and convert the file to an editable file.
Save the file as .DOCX file.

Best for
Microsoft Office 365 Users
Desktop users occasionally converting
Free methods
 

Drawbacks

Manual and takes time
Unreliable layout of the tables and complex formats

Drawbacks of Using the Manual Method
As stated above, it would work well only when you have fewer images to be changed into document form. However, when there is an issue of bulk images, then this process might require too much of your time. This is the reason why it is suggested that you should use the smart way for converting PNG image to DOC file.

Smart way to Convert PNG to Word Free
This part will educate you on online converters from PNG to Word. Thus, you will be able to pick which one suits you better or which tool will be convenient for you. Without wasting any time, here are some of the tools:

The Top 3 Free Online PNG to Word Converters

iLovePDF2
iLovePDF2 is a Web based platform that has tools for conversion, editing, compression, merging, and splitting. Other features of the platform include the capability to convert PNG to Word documents, allowing you to edit text, tables, buttons, images & layout in a Word document format. Other features of the platform include Google Workspace integration and batch processing.

Pros
100% free to use
Smooth navigation
No steep learning curve
No installation required
Fast processing of documents
Supports multiple file formats

Cons
Only accessible through Web browsers

FreeConvert
FreeConvert is an online PNG to Word conversion service, which provides support for various formats. It allows you to convert your PNG files to Word format without any software installations, and you can use batch conversion to process several files. There are also options to customize file conversion settings, and free file conversions have file size limitations.

How it works
Step 1: After you open the software, click on “Choose Files” to upload the PNG file into the software.
Step 2: You have to click on “Convert” to start the conversion process.
Step 3: When the Word file is created, you should click on the “Download” button.

Advantages

• You will gain the advantage of generating a QR code after the conversion.
• This online PNG to Word converter makes use of OCR technology to get text even from complex and blurry images.

Disadvantages

• It cannot extract text from complex images such as graphs and charts.
• There is a limit of inserting a file up to 1GB in its free versions.

Chart Summary

Analytic Insights of the Tools
FreeConvert is useful for OCR-based image conversion. This platform has been constrained by file size limitations, lack of stability, overwhelmed by advertisements, or forced to go through too many unnecessary steps to do simple tasks.
Although ILovePDF2 might not have a flashy interface like other tools, if you are looking for something that comes without any frills and is absolutely free, it is one of the ideal options out there. The platform is free of charge and does not even need any kind of registration since there is no option of account at all. All you need to do is to upload your document, make use of one of the many PDF tools, download your document, and you are done. 

Common PDF Tool Pitfalls Explained
A lot of PDF tools seem easy to use until you really try to use them.

• They're too slow/unstable: File uploads drag on; page processing stops; conversions don't complete.
• Output is messy: Pages shift around; images deteriorate; text gets warped.
• Lack of features: No bulk conversion, less format support, or upload restrictions.
• Too many obstacles: Confusing interface, unnecessary options, and unexpected payments stand in your way.
• It creates unnecessary complications for clients when a failed conversion wastes your time.

The summary: A good PNG file to Word converter tool saves your time by simplifying the process, not making it more difficult. 
Useful cases of PNG to Word

• Cases which arise frequently for PNG to Word conversion:
• Editing text which appears as a screenshot or scanned text.
• Extracting the text from a scanned form or letter and editing it.
• Retrieving the text from a file which got corrupted in its original format and saved as an image.
• Extracting the text from a flyer or a social media post.
• Turn PNG to Word to collaborate on the file using Microsoft Word or Google Docs.
• Fast conversion from PNG to Word because a person has sent you a picture rather than .DOCX file.

The Importance of Accuracy
Of course, this is an OCR type of conversion. As always, this works better when the image itself is high-quality and the writing is either typewritten or not too artistic. If you have a nice, sharp screenshot or scanned page, it will convert without any problems. If you have something less than perfect, you may need to do some cleaning up manually after the fact.

OCR tips for Better Recognition
There are a few things that make OCR work better: 

• Use clean high-res PNG or JPEG images – blurry images lower recognition rate.    
• Set the same OCR language  as your image file.
• Select "Image & Text" option to get editable text along with images.
• Crop and straighten the scan of the page prior to uploading.
• For multi-column text, you may see some formatting changes in Word.

The Best Way to Convert PNG to Editable Word
Overall, it is quite simple to turn PNG to Word files, but you should follow proper techniques and processes to minimize chances of losing any data. 
With iLovePDF2, you need to just upload your PNG, extract text with OCR, and download an editable DOCX free online - no watermark.