Making panorama photos with any digital camera

Step 6 Stitching

6 Copy and paste the adjacent photo into your PSD file.
7 Set the opacity of the pasted layer to 50%.
Set layer opacity / transparency in Adobe Photoshop
8 Position the semi-transparent layer for it to match the background in a vertical column. Moving the picture around will make it easier to see when you have a good fit.
Moving semi opaque / transparent layer in Adobe Photoshop
9 Add a layer mask to the transparent layer by clicking on the 'Add layer mask icon': Add layer mask in Adobe Photoshop
Add mask to layer in Adobe Photoshop
After adding the mask you will see the mask thumbnail next to the layers thumbnail Layer with mask in Adobe Photoshop
10 Select the gradient tool [G]
Apply gradient to layer's mask in Adobe Photoshop
Apply the gradient to your photo on the area that you lined up with the underlying photo. If you find your gradient erases the wrong side of your picture you can either reverse the front and background colours (X) or reverse the direction you pulled the gradient in.
Most pictures work with a vertical gradient - you can ensure the gradient is vertical by holding down the shift key - or slightly slanted gradient. The advanced panorama stitching section gives some tips and tricks to work with objects in the foreground.
Gradient applied in Adobe Photoshop
11 Set the opacity of the layer back to 100%.
12 Repeat steps 6 - 12 for all remaining photos.
13 Finally create a selection to crop the panorama photo into shape
(Image > Crop ...)