Photoshop’s frame tool is a quick and easy way to clip an image to a custom shape, rectangle, or circle. You can easily place and clip images, and replace the content at any time.
To use the frame tool, tap the K key or choose the frame tool from the toolbar. With the image selected in the layers panel, click and drag out the frame. A new frame icon appears in the layers panel, and the photo is converted to a smart object, making it easy to replace the contents at any time.
You can use the layers panel to select the image or the frame, or shift-click to select them both. You can also select them on-screen. Double click to toggle selecting the image, which you can then reposition. Double click again to select both the image and the frame, or click on the edge of the frame to resize the frame itself.
If you want to add an image in a circular frame, select the option, click, and drag while holding down the shift key to constrain it to a circle. You can choose to place an embedded file, drag and drop an image using the operating system, or from another application such as Lightroom. Photoshop places it as a smart object. Use command T on Mac or ctrl T on Windows to transform and reposition it within the frame. Tap enter to commit to that transformation.
If you select the frame, you can use the properties panel to add a stroke. To convert a shape layer to a frame, choose layer new, and then convert to frame. This could also be a path or a type layer. Drag and drop an image into the frame from the libraries panel.
If you ever need to remove a layer, right-click on the layer in the layers panel and choose remove frame from layer.
While you can accomplish similar effects using clipping groups and masks, the frame tool is a fast and easy way to clip an image within a shape.