How to Make Transparencies in CS5
Transparencies allow you to display different types of backgrounds -- whether they're solid colors, patterns or images. Adding a transparency effect is a handy option if you have multiple layers within an image, but want to display the bottom design or text. Photoshop CS5 uses opacity to make elements more or less transparent. Thanks to the Layers palette, you can define the opacity of each layer without removing contents in the foreground. The opacity determines the level of transparency.
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Instructions
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Start Photoshop CS5, and click "File" and "Open." Double-click the image you want to modify in the “Open” dialog box.
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Press the “F7” key to open the Layers palette.
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Select the layer containing the object you want to make transparent, in the Layers palette. If the object is on the lowest layer, double-click it and click “OK” in the “New Layer” dialog box. This unlocks the layer, turning it into "Layer 0."
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Select the layer you want to display in the background. Drag it below the other layers in the Layers palette.
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Select the layer you want to make transparent.
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Go to the "Opacity" box, located in the upper right area of the Layers panel. Type in the transparency level you want to set.
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