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- Open a photo.
- Convert the background to a layer by double clicking on it. (Give it a name if you wish.)
- Select the Elliptical Marquee tool.
- Drag a marquee selection around the area of the photo you want to keep.
- Click the “Add layer mask” button at the bottom of the layers palette.
- Click on the layer mask thumbnail in the layers palette.
- Go to Filter > Blur > Gaussian Blur and make sure the Preview option is checked.
- Adjust the radius until you are happy with the amount of fade and click OK.