[step:Verify the limit case $P(\lambda)$ using the inductive hypothesis on all $\xi < \lambda$]Let $\lambda$ be a non-zero limit ordinal, and assume the inductive hypothesis
\begin{align*}
\forall\, \xi < \lambda: \quad (\alpha + \beta) + \xi = \alpha + (\beta + \xi).
\end{align*}
We compute both sides of $P(\lambda)$. By the limit clause (applicable since $\lambda$ is a non-zero limit):
\begin{align*}
(\alpha + \beta) + \lambda = \sup\{(\alpha + \beta) + \xi : \xi < \lambda\}.
\end{align*}
By the inductive hypothesis, $(\alpha + \beta) + \xi = \alpha + (\beta + \xi)$ for each $\xi < \lambda$. Substituting into the sup,
\begin{align*}
(\alpha + \beta) + \lambda = \sup\{\alpha + (\beta + \xi) : \xi < \lambda\}.
\end{align*}
For the right-hand side, $\beta + \lambda$ is a non-zero limit ordinal by the previous step, so the limit clause applies:
\begin{align*}
\alpha + (\beta + \lambda) = \sup\{\alpha + \eta : \eta < \beta + \lambda\}.
\end{align*}
It remains to show
\begin{align*}
\sup\{\alpha + (\beta + \xi) : \xi < \lambda\} = \sup\{\alpha + \eta : \eta < \beta + \lambda\}. \tag{$*$}
\end{align*}
[claim:Identity ($*$)]
*LHS $\leq$ RHS.* Each $\xi < \lambda$ yields $\beta + \xi \leq \beta + \lambda$, and strict inequality holds: indeed $\xi^+ < \lambda$ (since $\lambda$ is a limit), so $\beta + \xi < \beta + \xi^+ \leq \beta + \lambda$. Hence $\beta + \xi < \beta + \lambda$, i.e., $\beta + \xi$ is a valid value of $\eta$ in the RHS sup. Therefore $\alpha + (\beta + \xi) \leq \sup\{\alpha + \eta : \eta < \beta + \lambda\}$ for every $\xi < \lambda$, and taking sup over $\xi$ gives LHS $\leq$ RHS.
*RHS $\leq$ LHS.* Let $\eta < \beta + \lambda$. By definition of $\beta + \lambda = \sup\{\beta + \xi : \xi < \lambda\}$ as a supremum, $\eta$ is not an upper bound of $\{\beta + \xi : \xi < \lambda\}$, so there exists $\xi^* < \lambda$ with $\eta \leq \beta + \xi^*$ (more precisely $\eta < \beta + \xi'$ for some $\xi' < \lambda$, but $\eta \leq \beta + \xi^*$ for some $\xi^* < \lambda$ suffices). Hence
\begin{align*}
\alpha + \eta \leq \alpha + (\beta + \xi^*) \leq \sup\{\alpha + (\beta + \xi) : \xi < \lambda\},
\end{align*}
where the first inequality uses monotonicity of addition in the second argument. Taking sup over $\eta < \beta + \lambda$ gives RHS $\leq$ LHS.
Hence the two sups are equal.
[proof]
*LHS $\leq$ RHS.* For each $\xi < \lambda$, $\beta + \xi < \beta + \lambda$ (by the argument above using $\xi^+ < \lambda$), so $\alpha + (\beta + \xi)$ is one of the values whose sup defines the RHS, hence bounded by the RHS sup. Taking sup over $\xi < \lambda$ gives LHS $\leq$ RHS.
*RHS $\leq$ LHS.* For any $\eta < \beta + \lambda = \sup\{\beta + \xi : \xi < \lambda\}$, there exists $\xi^* < \lambda$ with $\eta \leq \beta + \xi^*$. By monotonicity of addition in the second argument, $\alpha + \eta \leq \alpha + (\beta + \xi^*)$, which is bounded by the LHS sup. Taking sup over $\eta < \beta + \lambda$ gives RHS $\leq$ LHS.
[/proof]
[/claim]
Combining,
\begin{align*}
(\alpha + \beta) + \lambda = \sup\{\alpha + (\beta + \xi) : \xi < \lambda\} = \sup\{\alpha + \eta : \eta < \beta + \lambda\} = \alpha + (\beta + \lambda),
\end{align*}
establishing $P(\lambda)$. This completes the transfinite induction and proves $(\alpha + \beta) + \gamma = \alpha + (\beta + \gamma)$ for all ordinals $\alpha, \beta, \gamma$. $\blacksquare$[/step]