Everyone seems to want to know how to blend, merge or paste two images together. Here's a simple method to superimpose one image on top of another.

Start with your two images. They don't need to be the same size.

With the Selection Tool set to Ellipse, Feather 17 and antialias checked, make a selection in the image you want to paste onto the other image. Be carful when making the selection to not get too close to the edge of the image as this will result in your copied image having flat edges.

Once the selection is made press CTRL C on your keyboard to copy it to the clipboard.

Activate the second image and press CTRL L to past the clipboard contents as a new layer.

Adjust the new layers blend mode opacity for a lighter ethereal effect.

That's it! Told you it was easy. :)