Colin Smith: Collaging in Photoshop
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Now are you ready to take the next step? Duplicate layer 1 (in my example, the cog), by selecting the layer and layer > duplicate or by simply dragging the layer name to the new layers icon .

Drag the new layer to the top of the layers palette as seen in the picture.

Keeping the top layer selected, Ctrl/Cmd+click on the layer 4 thumbnail. (My example is of the tiny picture of the hands in the layers palette.)

A) You should see the "marching ants" selection like this.

B) Click add layer mask icon and the selection will automatically fill the mask. Click the mask thumbnail to select the layer mask.

C) Invert the mask by pressing Ctrl/Cmd+I or image > invert. You will now see the hands again.

In my example, I now need to paint back some of the cog, but to see it clearly I will lower the opacity of the hands layer (layer 4). I selected the layer and slide the opacity to 58%.

Select the top layer again. Just like before, with the layer mask active and a white brush, paint the edges of the cog to make them visible. Since I have a bit of detail in the teeth of the cog, it will help to use a smaller hard brush. I use a large soft brush going into the hands for a smoother transition.

Set the opacity at 100% again on layer 4 (in my example, the hands layer) Now I have an interesting blend of images.

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