In this tutorial we fake the miniature photography effect that can otherwise only be achieved with a tilt-and-shift lens (mind you, very expensive piece of glass) and create some miniature scenes.
Opening a Photo

First, open up a photo of choice that you would like to apply the effect to. I suggest a landscape image with objects, or generally any image with objects throughout the scene (needed to create a sense of scale).
Duplicating the Background Layer

Secondly, double-click on the background layer and click the OK button in the dialog that appears in order to unlock the background layer so that we can edit it. Then, use the keyboard shortcut Command + J (PC: Control + J) to make a new layer via copy so that we still have our original intact if we need to go back at any given time.
Going into Quick Mask Mode

What we want is to make a selection that we can then blur to create the effect. To create the selection, we are using the quick mask mode that can be gotten to by pressing the bottom icon in the layers panel, or pressing the letter Q.
Setting Up the Gradient
The effect is based on the illusion that appears when you have a smaller, in-focus area in contrast to a larger out-of-focus area. Firstly, select the Reflected Gradient in the gradient types in the toolbar and then make sure the reverse button is ticket (if you’ve got the same way white to black as I have in my preview).
Draw Out the Gradient

With the gradient properly set-up, just drag in the photo until you get a good line that you later want in focus. You don’t want to make this too big, but not too small either. Experiment to find the best looking effect.
Inverse Selection

Press Q to get out of the quick-mask mode and you shall notice that we have a selection in the areas that were white in the quick-mask mode. In order to make the selection be the other way around, to go Select > Invese or use the shortcut, Shift + Command + I (PC: Shift + Ctrl + I).
Applying the Blur

As the final effect addition, go to Filter > Blur > Lens Blur to add the lens blur filter to just the area contained in the selection we just made.
Preview and Experiment

Use the large preview window that you get to tweak and play around with the settings until you reach the effect you are looking for and looks realistic. After you are happy, click the OK button.
Final Effect

This is the finished effect and we’ve finished turning a regular photo into a miniature scene.
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