Updated: Apr 10
Start by opening or creating your image or text which you would like to turn into a watermark. For the purpose of this tutorial I have used the custom shape tool to create a paw print.
In the layers pallet make sure your image or text is on its own separate layer.
You will now need to lower the opacity of the layer to create a watermark effect. Somewhere between 20% and 50 % is usually good.
50% opacity on white background
50% opacity with no background
20% opacity with white background
20% opacity with no background
Turn off your background with the eye symbol in the layers pallet next to your background layer.
Save your image as a PNG file to keep the transparent background.
To add this watermark to your image simply open the image in another photoshop window.
Click on your watermark layer in the original window and drag it across to your new window.
Now you have the layer in your new photoshop file, you can adjust the opacity to suit your image.
You can also resize your watermark using the free transform pass tool. It is found under the Edit menu or shortcut Command + T.
Save your image and you are done.