Photoshop Tutorials: Making Your Subject Pop Out Of A Photo
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Step 8: Add A Stroke To "Layer 1"
We're going to make our smaller photo look more like an actual small photo by adding a border to it. To do that, with "Layer 1" still selected, click on the Layer Styles icon at the bottom of the Layers palette:
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Then select Stroke from the list of Layer Styles:

This brings up Photoshop's Layer Style dialog box set to the Stroke options:

First, change the Position of the stroke to Inside. Then use the slider bar at the top to increase the Size of the stroke to give the photo a "polaroid" style border around the edge. I've increased my stroke size to 13 pixels. Finally, click on the Color swatch, which will bring up Photoshop's Color Picker:

Choose a light gray for your stroke color. Click OK when you're done to exit out of the Color Picker, and then click OK to exit out of the Layer Style dialog box.
Your image should now look something like this:
