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1. Open Photoshop
2. Take New Document (see here - How to Open New Document in Photoshop )
   
   
   
   
3. Insert any Image ( see here - How to Insert Image in Photoshop )
   
   
   
   
4. Drag Inserted Image in to newly created document
   
   
   
   
5. Take New Layer
6. Draw a Circle and Fill color
   
   
   
   
7. See Layer Pallet and Layers -
   • Background Layer is Empty
   • Layer 1 has Image
   • Layer 2 has Circle
     
     
     
     
8. Drag Layer 1 ( Iamge layer) to above Layer 2 (Circle layer )
   See Layer Pallet and Layers
   • Background Layer is Empty
   • Layer 2 has Circle
   • Layer 1 has Image
     
     
     
     
9. Place Cursor between two layers ie; Image Layer ( layer 1 ) & Circle Layer ( layer 2 ) hold Alt key.
10. Small symbol will be diaplayed between two layer when we hold Alt key
    
    
    
    
11. Now Press Click on Mouse
12. done
    
    Out Put
    

See More Photoshop Tips and Tutorials

1. How to Make Money with Adobe Photoshop
2. About Toolbar and Options of it !
3. Photoshop Shortcut Keys
4. How to Insert Image in Photoshop
5. How to Apply Feather in Photoshop
6. Vector Mask in Photoshop