In this tutorial I will show you how to create Rounded Corners text using simple technique in Adobe Photoshop and can be use to apply the same technique on any type of font or shapes.

1. Start by making a new file.

2. Select a square font, I used Arial Black and choose any preferred font size and type some text. In this Tutorial I have written “Rounded” in capital letters.

3. Go to Layer->Rasterize Type (Right click on the Layer)

4. Select the text layer, then Ctrl+Click on the layer thumbnail to select the text contour.

5. To add a layer mask Go to Layer->Layer Mask->Reveal Selection, pres Ctrl+D to deselect.

6. Select the layer mask by clicking on the layer mask thumbnail.

7. Go to Filter->Blur->Gaussian Blur.

8. Enter a radius of 5 (value depends on the size of the font, which you can explore it with different values to see which is more likely to give a rounded corner blurs), then pres Ctrl+F two times to repeat the filter.

9. Go to Image->Adjustments->Levels

10. Set the exposure level as shown below and you can adjust the values which looks best.