- Open an image on which we add rounded corners or create blank image.
- Add a new layer on top, so image has its own layer under the newly created layer.
- Selected “Rounded Rectangle Tool” and draw rectangle on the new layer.
- Double click on the layer that you just drew the rounded rectangle on.
- In the Advanced Blending area, play with the Fill Opacity percentage. Make it 0% if real image (not blank) is underneath it.
- Click on the Paths tab., select the path, click on the little arrow button, in the upper right corner, and select “Make Selection…”.
- In the “Make Selection” option box, make sure Feather Radius is set to 0 pixels, and Anti–aliased IS checked.
- Finally, with the selection still pending action, go to Edit, Copy Merged. Create a new document, and leave the dimensions alone. In the new document, go to Edit, Paste. That’s it!