First create a new Photoshop document at any size you wish. I'm going to set mine at 8" x 8".
Now open up two digital images and drag them into your blank document on two different layers. Make sure that the top image overlaps the bottom image by a good bit, I'll explain later.
Here are the photos I'll be using:
Now create a new blank layer and call it "Gradient". Now select the Gradient tool from the toolbar on the left. Make sure that in the gradient options that you choose the gradient to go from a solid color to transparent.
Start at the bottom of the front image (make sure you start on top of the of bottom image and not in the blank part of the layer) and draw a straight line with your gradient tool going from the bottom of the image towards the top making sure to make a reasonably small gradient that makes a smooth transition from solid to transparent. You should get a gradient that goes from the bottom of the page to the spot in which you stopped drawing the line. Make sure your gradient does not extend past the top of you back image.
Next select the entire gradient area with the Rectangular Marquee Tool, then using your Move Tool drag the gradient ever so slightly in any direction making sure not to actually move the gradient (if it does move just drag it back to it's previous spot). Now the marquee should only be surrounding the solid part of the gradient layer.
With the gradient layer still selected with the marquee tool switch to the top image layer and delete the area surrounded by the marquee tool.
Finally hide the gradient layer and you should see something like this:
If you have any questions, please leave a comment and I will answer it as soon as possible. Have fun.
