Turn a Photo Into a Polaroid with Photoshop Elements

Duplicate the Polaroid layer by dragging it onto the New Layer button on the layers palette. With the top Polaroid layer active and the move tool selected, put your cursor just outside the corner handle until your cursor changes to a double arrow. Click and rotate the image slightly to the right. (If you don't have corner handles with the move tool selected, you may need to check "show bounding box" in the options bar.) Double click to commit the rotation.

If desired, add some text in your favorite handwriting font. (I used DonnysHand.) Now just crop the image to remove the excess border and save it!

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There is also a video version of this tutorial.