We are going to pick a nice picture and then we are going to add a very nice effect to it. Once we find the picture, we are going to create a dreamy look and will apply it to it to change its look and texture.

Step: 1
Open Document and duplicate the layer: Layer-Duplicate Layer.

How to create a dreamy photograph

Step: 2
Click on Filter-Blur-Gaussian blur.

How to create a dreamy photograph

Step: 3
Now change the Opacity. You can play with the slider until you get the dreamy effect you are looking for.

How to create a dreamy photograph

Step: 4
Now use the eraser tool an delete some things from the dreamy effect layer. This will make some things a little blurry and some other well defined creating a very nice contrast in your dreamy effect.

How to create a dreamy photograph