Photoshop Tutorial: Blending Two Images Together
How to blend two images together in Photoshop.
Open your images
Open your images up in Photoshop and drag one image into the other with the Move tool so each of the images appear on separate layers. In our example it's a landscape shot and a photo of a sheep of which we are going to blend into the background. If, like ours, your subject is too big for the background go to Edit>Free Transform and adjust the anchor points until they fit.
Layer Mask
Select the layer you want to create the mask on, which in our case is the image of the sheep, and select the Layer Mask icon from the bottom of the layers palette. This will add a Layer Mask icon on the layer you selected and for the moment it will be completely white as none of the layer is hidden by the mask.
Brush Tool
At the moment it looks like we have two separate images but we can use the Layer Mask to hide the area surrounding the subject to seamlessly blend the two layers together. To do this, select the Brush tool, make sure the foreground colour is set to black and paint over the part of the layer you want to hide. If you paint too much away change the foreground colour to white and paint back over the area you've just removed.

Shot before and after:

Gradient Tool
If you want to blend too images together gradually you can use the Gradient tool. Drag one image into the other, as you did previously, so you have two layers.

Before you use the gradient make sure you've created a Layer Mask on your top layer then starting where you want most of the image to be hidden, click and drag your mouse to where you want to blend to end. If the Gradient takes too much of your image away you can switch to the Brush tool making sure white's set as your foreground colour and paint the detail back in.
Finished image:





