Create Soft Edged Border Effect in Photoshop

There are very few simple steps need to follow if you want to have fade out kind of effect which makes the edges look soft using Adobe Photoshop. This is a very popular effect when you want to merge an image to another background so that the new image fits or adapts to it’s new environment resulting a WOW effect.
I have tried all my best to keep this post simple so that even a guy who has no experience of Photoshop can do the trick. What you need to do is to walk through the procedure step by step.
Tools Needed : :) You are right !   Adobe Photoshop
Skills Needed : :( You are wrong ! Nothing
Now, without twisting the story much, let’s get started with step 1.
STEP 1:
Choose 2 Images. For this demo I have picked following two images, first is a simple one with a beautiful quote and the sweet smiling kid.

Image 2

Image 1

You may download these images to your PC by simply clicking each of them or you may choose any other two images of your choice.
STEP 2: Open Image 1 with Photoshop.
STEP 3: Drag Image 2 and place just on the Image 1 opened with Photoshop.

STEP 4: Drag/Move this image to your preferred location on the Image 1 . You can resize the image too by stretching the corners of the Image 2 (with shift key to maintain the aspect ratio) . Then press Enter key to place the image.

STEP 5: Select the Elliptical Marquee Tool .

STEP 6: Create a marquee selection by dragging around the area of the Image 2 you want to keep which will be visible above the Image 1.

STEP 7: Click on the Add layer mask button at the bottom of the layers palette.

  
STEP 8: Go to Filter Menu and select Blur and then Gaussian Blur .
  
STEP 9: You can use the slider to increase or decrease the intensity of blur .

STEP 10: WAIT ! Are you seriously waiting to follow the 10th step ? :D :D Okay. Just click the Save from File menu and save the file to the format you want.
And yes, don’t forget to drop few lines for me regarding how you liked :) or disliked :( the post.
Thanks a lot for reading !