1. Drag the frame and photo in one document. I named the frame as “frame stand” layer and the picture as “photo”.
             
  


 


   And if placed below the frame stand, definitely it is like this:


          





3. Since we are working to look the picture as if it is inserted in the frame. The Photo layer must be at the topmost. Then select it and lower its opacity for a while. I lower it to 34%. It will look like this. 

 


Don’t worry we will restore it later. This is only for the purpose of easy selecting the area in frame to be overlapped.

4. With the frame stand layer active, select the Rectangular Marquee tool and select this part.

  


Then right-click anywhere inside the selected area and click the Layer via Copy.

        

    



The selected area becomes a layer and named it as “overlap1”. Bring this layer all the way to the top. Now, going back to the photo, select it and return its opacity to 100%. So pretty realistic, isn’t it?


      


5. Now for the upper part of the frame, do the same procedure. Make the frame stand active, select the area of the frame to be overlapped and right-click, select Layer via Copy. Named this as “overlap2” and bring this layer also the topmost.