Step 1: Duplicate The Background Layer

The first thing we need to do for this effect is duplicate our

Background layer. With our image open in Photoshop, we can see in
the Layers palette that we currently have just one layer, the
Background layer, which contains our original image:

The Layers palette in Photoshop showing the original Background layer.

To quickly duplicate the layer, use the keyboard shortcut Ctrl+J (Win)
/ Command+J (Mac). Photoshop creates a copy of the Background
layer for us, names it "Layer 1", and places it above our Background
layer in the Layers palette:

The Layers palette now showing the copy of our Background layer above the original.

Step 2: Add A New Blank Layer Between The Two Layers

Next, we need to add a new blank layer between our Background

layer and the copy of it that we just created. Currently the copy is
selected in the Layers palette (we can tell the layer is selected
because it's highlighted in blue). Normally when we add a new layer,
Photoshop places the new layer above the layer that's currently
selected, but we want our new layer below "Layer 1", not above it. To
tell Photoshop to place the new layer below "Layer 1", hold down
your Ctrl (Win) / Command (Mac) key and then click on the New
Layer icon at the bottom of the Layers palette:

Hold down "Alt" (Win) / "Option" (Mac) and click on the "New Layer" icon at the bottom of the Layers
palette.

Photoshop adds a new blank layer named "Layer 2" between "Layer
1" and the original Background layer:

Photoshop adds the new blank layer between the Background layer and "Layer 1".

Step 3: Fill The New Layer With Black

We're going to use black as the background for our effect, so let's
reset our Foreground and Background colors if needed by
pressing D on your keyboard. This sets black as your Foreground
color and white as your Background color, as we can see in the
Foreground and Background color swatches near the bottom of the
Tools palette:

Press "D" to reset Photoshop's Foreground and Background colors to black and white if needed.

Now with black as our Foreground color and the new blank layer
selected in the Layers palette, let's fill the new layer with black using
the keyboard
shortcut Alt+Backspace (Win) / Option+Delete (Mac). Nothing
will appear to have happened to the image itself, and that's because

"Layer 1", which contains a copy of our original image, is blocking

"Layer 2" from view. But if we look at Layer 2's thumbnail in the Layers
palette, we can see that we've filled the layer with black:

Layer 2's thumbnail in the Layers palette now shows that the layer is filled with black, even though we
can't see it yet in the image itself.

Step 4: Add A New Blank Layer

With "Layer 2" (the layer we just filled with black) selected, click once
again on the New Layer icon at the bottom of the Layers palette:

Add a new blank layer.

Photoshop will add a new blank layer between the black-filled layer
and the copy of the original image above it:

The new blank layer is added between "Layer 1" and "Layer 2".

Step 5: Drag Out A Rectangular Selection As The Inside Of

Your First Polaroid
Select the Rectangular Marquee Tool either from the Tools
palette or by pressing M on your keyboard:

Select the Rectangular Marquee Tool.

Then, with the Rectangular Marquee Tool selected, drag out a

selection inside your image which will become the inside of the first
polaroid (the part which contains the photo). I'm going to drag my
selection around the baby's face. It doesn't really matter where you

make this selection since you'll be able to move it anywhere you like
later:

Drag out a selection in the shape of the inside of a polaroid photo.

Step 6: Fill The Selection With Black

We need to fill the selection with black at this point. Technically, it
doesn't matter which color we fill the selection with, but to keep things
simple and since black is currently our Foreground color, let's use
black. Make sure you have the new blank layer selected in the Layers
palette, and then use the keyboard
shortcut Alt+Backspace (Win) / Option+Delete (Mac) to fill the
selection with the Foreground color, which is set to black. Again,
nothing seems to have happened in the document, and that's because
the image on "Layer 1" at the top is still blocking everything else from
view, but if we look at the thumbnail for the blank layer in the Layers
palette, we can see that the selected area has indeed been filled with
black:

The new blank layer's thumbnail in the Layers palette now shows the selected area filled with black.

Step 7: Create A Clipping Mask From The Filled Selection

We're going to use the selection we just filled with black to create
what's called a clipping mask for the layer above it. What this
means is that the layer above it, "Layer 1" which contains the copy of
our image, is going to be "clipped" by our filled selection on the layer
below it. In other words, the only part of the image on "Layer 1" that
will remain visible is the part directly above the section filled with
black. The rest of the image will become hidden from view.
To create our clipping mask, click on "Layer 1" to select it in the Layers
palette. Then go up to the Layer menu at the top of the screen and
select Create Clipping Mask. You can also use the keyboard
shortcut Alt+Ctrl+G (Win) / Option+Command+G (Mac).
Either way, Photoshop "clips" the image on "Layer 1", keeping only the
area above the black-filled shape below it visible and hiding the rest of
the image, revealing our black background on "Layer 2" in its place:

The image on "Layer 1" is now clipped using the black-filled shape on the layer below it.

If we look in the Layers palette now, we can see that "Layer 1" is
indented to the right with a small arrow pointing downward on the left.
This indicates that the layer is being clipped by the layer below it:

The Layers palette showing that Layer 1 is now being clipped by the layer below it.

Step 8: Add Another New Blank Layer Above "Layer 2"

We need to add another new layer, and we need it between the blackfilled layer ("Layer 2") and the layer containing our filled selection
("Layer 3"). To do that, click on "Layer 2" to select it and then click
once again on theNew Layer icon at the bottom of the Layers
palette:

Add another new blank layer directly above the black-filled layer ("Layer 2").

Photoshop adds the new layer between "Layer 2" and "Layer 3" and
names it, surprisingly enough, "Layer 4":

The new blank layer, "Layer 4", is added between "Layer 2" and "Layer 3".

Step 9: Drag Out Another Rectangular Selection As The

Border Of The Polaroid
With your Rectangular Marquee Tool still selected, drag out another
rectangular selection, this time around the outside of the original
selection, which will become the white border of the polaroid. Keep in
mind that polaroid photos have some extra space at the bottom of the
border, so add some extra space at the bottom of your selection:

Drag a selection around the outside of the original selection to create the border of the polaroid.

Step 10: Fill The Selection With White

Since the border of a polaroid is usually white, let's fill our selection
with white. Make sure that you have the new blank layer, "Layer 4",
selected in the Layers palette. Then, since white is currently our
Background color, let's use the keyboard
shortcut Ctrl+Backspace (Win) / Command+Delete (Mac) to
fill the selection with the Background color (white).
Press Ctrl+D (Win) / Command+D (Mac) when you're done to
deselect the selection. We now have our first polaroid in our image:

Fill the selection with white to create the first polaroid.

Step 11: Add A Drop Shadow Layer Style

We have our first polaroid, and we're going to use it to easily create as
many polaroids as we want. But before we do anything else, let's add

a slight drop shadow to it. We won't be able to see the drop shadow
just yet, since we're using a black background, but we will see it once
we start piling polaroids on top of each other. To add our drop shadow,
with "Layer 4" selected, click on the Layer Styles icon at the bottom
of the Layers palette:

Click on the "Layer Styles" icon at the bottom of the Layers palette.

Select Drop Shadow from the list of layer styles:

Select "Drop Shadow".

This brings up Photoshop's "Layer Style" dialog box set to the Drop
Shadow options in the middle column. I'm going to set my
shadow Angle to about 120 and then lower the Opacity value at
the top all the way down to about 30%so my shadow isn't too intense:

Lower the "Opacity" of the drop shadow to 30% and set the "Angle" to around 120.

Click OK to exit out of the Layer Style dialog box. As I said, we won't
be able to see the drop shadow just yet thanks to our black
background, but don't worry. We'll see it soon enough.
Step 12: Rotate The Polaroid
I'm going to rotate my polaroid to add a bit more interest to it. In order
to do that, I need to select both layers in my Layers palette which
make up my polaroid. I already have "Layer 4" selected, which makes
up the outside of it, but I also need "Layer 3" selected, which makes
up the inside, so with "Layer 4" selected, I'm going to hold down
myShift key and click on "Layer 3", which will select both layers at
once (they'll both appear highlighted in blue):

Use the "Shift" key to select both "Layer 3" and "Layer 4" in the Layers palette.

Then with both layers selected, I'm going to bring up

Photoshop's Free Transform handles around my polaroid using
the keyboard shortcut Ctrl+T (Win) / Command+T (Mac). To
rotate it, all I need to do is drag my mouse cursor anywhere outside of
the Free Transform handles. The mouse cursor will change to a
"rotate" cursor with curved arrows on either end of it. As I drag my
mouse, the polaroid will rotate:

Click and drag anywhere outside of the Free Transform handles to rotate the polaroid.

You can also move the polaroid to a new location if you wish by
clicking inside of it and dragging it around the screen with your mouse.
I'm going to leave mine where it is for now and simply rotate it. As you
drag, you'll notice that the border of the polaroid moves and rotates
but the image inside of it does not, and that's because we're not
moving the actual image. It remains fixed in place. The only thing
we're moving is the polaroid itself, and this is what's going to allow us
to create our final effect, as we'll see.

When you're happy with the location and angle of the polaroid ,
press Enter (Win) / Return (Mac) to apply the transformation.
Step 13: Group All Three Layers Which Make Up The
Polaroid
We have our first polaroid created and rotated into place. Now we're
going to use it to create as many polaroids as we want. Before we can
do that though, we need to group all three layers which make up the
polaroid , which are the top three layers in the Layers palette. "Layer
1" contains the image itself, "Layer 3" contains the inside of the
polaroid , and "Layer 4" contains the outside of it. In order to group
them, we need them all selected. We already have "Layer 3" and
"Layer 4" selected, so once again hold down your Shift key and click
on "Layer 1" to add it, so all three layers are selected and highlighted
in blue:

Select the three top layers in the Layers palette at once.

Then, with all three layer selected, use the keyboard

shortcut Ctrl+G (Win) / Command+G (Mac) to group them. You'll
see all three layers disappear from the Layers palette and be replaced
by a layer named "Group 1", which contains a folder icon to indicate

that it's a Layer Group. If you click on the right-pointing triangle to

the left of the folder icon, the group will open and you'll see your three
layers inside of it:

The three layers which make up the polaroid are now inside a Layer Group.

Step 14: Duplicate The Layer Group

We're going to use this Layer Group to create our second polaroid ,
and we're going to do that by duplicating the group. First, click once
again on the triangle to the left of the folder in the Layers palette to
close the group so your Layers palette doesn't get too cluttered. Then
simply click on the group and drag it down onto the New Layer icon
at the bottom of the Layers palette:

Duplicate the Layer Group by dragging it down onto the "New Layer" icon.

When you release your mouse button, you'll see the copy of the Layer
Group appear above the original:

The copy of the Layer Group appears above the original.

We now have our second polaroid.

Step 15: Move And Rotate The Second Polaroid With The
Free Transform Command
Just as we did with the original, we're going to move and rotate this
second polaroid using Free Transform (I didn't actually move my first
one, but you may have, so let's pretend I did as well). First, twirl open
the newly created copy of our Layer Group by clicking on the triangle
to the left of its folder icon. Just as before, you'll see all three layers
inside of it which make up the polaroid . We need to select the bottom
two layers which make up the inside and outside of it, so click on one,
then hold down Shift and click on the other to select them both:

Select the bottom two layers inside the copy of the Layer Group.

Then with both layers selected,

press Ctrl+T (Win) / Command+T (Mac) to bring up the Free
Transform handles around the polaroid . At the moment, it looks like
there's only the one polaroid in the image, and that's because both of
them are directly on top of each other. Click inside the polaroid and
drag it to move it to a new location, and you'll see that you do in fact
have two. Drag this second one to wherever you like in your
document, and then rotate it just as before, by moving your mouse
anywhere outside of the Free Transform handles and dragging your
mouse to rotate it left or right. You'll see that once again, we're only
moving the polaroid itself. The image inside of it remains fixed in
place, and now that we've added a second polaroid , we're displaying
more of the full size image:

Use Free Transform to move and rotate the second polaroid .

You'll also notice that with the second polaroid overlapping the
original, we can now see the drop shadow, which gives the image a bit
of depth. When you're happy with the location and angle of your
second polaroid , pressEnter (Win) / Return (Mac) to apply the
transformation. We now have two polaroids completed:

Two polaroids have now been added to the image.

Step 16: Add, Move And Rotate More Polaroids As Needed

At this point, we just repeat the exact same process over and over
until we've added enough polaroids to reveal enough of the original
image. First, drag the top-most Layer Group down onto the New
Layer icon at the bottom of the Layers palette. This will create a copy
of the last polaroid you made. Then twirl the new Layer Group open by
clicking on the arrow to the left of its folder icon and select the two
bottom layers which make up the inside and outside of the polaroid.
Press Ctrl+T (Win) / Command+T (Mac) to bring up the Free
Transform handles, click inside them and drag the image into a new
location to reveal more of the overall image, then move your mouse
outside of the handles and drag to rotate the new polaroid.
Press Enter (Win) / Return (Mac) to accept the transformation,

then repeat the process again until you've added enough polaroids
that you're happy with the results.
There's no "right or wrong" placement of the polaroids , so don't be
afraid to play around with it, and you can always go back and move or
rotate any of the polaroids at any time by selecting its Layer Group,
twirling it open, selecting the two bottom layers, then using Free
Transform to move and/or rotate it again.
I'm going to add, move and rotate more polaroids here with my image,
and after creating about 16 polaroids, moving and rotating each with
the Free Transform command, here is my final result: