Start by opening Photoshop and creating a new RGB image. I used the dimensions of 550x150 in the example. Then create some text by using the Type Tool (keyboard shortcut T).

Next Ctrl click (Mac: Cmd click) on the text layer to select it. Then create a new layer by clicking . Click and drag the new layer below the layer that your text is on. Go Select>Modify>Expand and choose the number of pixels that you want your outline to be. I chose 2 pixels in the example.

Now choose the color that you want your outline to be as the foreground color. Then hit Alt+Backspace (Option+Backspace) to fill the selection.

Right now you have a basic outline, but there are some more things you can do if you would like to enhance it a bit. For instance, outer glows or drop shadows are always nice with outlines. In the example I added an outer glow, by using the Blending Options (a.k.a. layer effects). To do this, hit Ctrl+D to deselect your selection and then go right click the layer you are currently on with your outline (in the Layers Palette) and choose Blending Options. To see the watch setting I used, you can click the image to the left.

To further increase the coolness factor, you may want to add a gradient to your text. I did this by clicking the text layer in the Layers Palette and then creating a new layer. Next Ctrl click (Cmd click) the text layer to make it a selection and pick the Gradient Tool (it's hidden under the paint bucket tool in PS 6 and above). Now you can either edit your own gradient or use one of the predefined gradients. In the example, I used a linear gradient . Click once and then again in the direction that you want the gradient to go.

One other popular outline effect is the floating outline. To do this you choose a large number of pixels when you expand your selection (in step 2). Then Ctrl click (Cmd click) your text layer again and expand by a lower amount of pixels and hit delete (or fill it with another color if you want). Now your outline will be floating around your text in a groovy way.

Tutorials: Photoshop

Title/Description

Level

3D Globs
Make those big trendy 3D globs using nothing but Photoshop.

Beginner

Actions and Batching
Save your precious time by automating tasks by using Actions and Batching.

Beginner

Box Art
Learn how to turn 2D artwork into a 3D software box, hardcover book, or other object.

Intermediate

Brushes
Create custom brushes and learn to use Photoshop's powerful brush engine.

Intermediate

Chromage
Make oh so smooth chrome effects.

Advanced

Colorburst
Learn how to make simple, eye-catching colorbursts.

Beginner

Colorize
Colorize is a artistic effect used by a lot of graphic designers to detail pictures.

Intermediate

Fire Text: Tutorial
Set your text ablaze with burning wrath.

Intermediate

Grunge: Tutorial
Create grungy background effects.

Intermediate

Ice Text: Tutorial
Learn who to chisel your own ice text.

Intermediate

Keyboard Shortcuts: Tutorial
Find out about all of Photoshop's lovely shortcut keys.

Beginner

Lighting Effects: Tutorial
Create realistic-looking plastic objects by using powerful lighting effects techniques.

Intermediate

Masking: Tutorial
Hide parts our your layers with style by using Photoshop's powerful masking features.

Intermediate

Micro Buttons: Tutorial
Learn how to make micro buttons in Photoshop.

Beginner

Neon Glow Text: Tutorial
Make neon text like that often found on commerical signs.

Intermediate

Outlines
Create suave outlines the old-fashioned way.

Beginner

Paths: Tutorial
Use paths to create smooth and editable selections.

Beginner

Seamless Water Texture: Tutorial
Make a very stylish and useful water texture.

Intermediate

Texture Wrapping: Tutorial
Learn how to realistically wrap a texture around an object.

Intermediate

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