Blending two images together is very similar to fading an image into its background: you'll apply a layer mask to at least one of your images. If you haven't created layer masks before, read the solution titled "Fading an Image into the Background, in Chapter 2."
Arrange your Photoshop document so that one of the images overlaps the other, as shown in the example below. I've usually found that the effect works best if the image backgrounds have similar colors or textures, although this is not mandatory by any means!
Create a layer mask for the top layer and use the Gradient Tool (G) or the Brush Tool (B) to create a fade effect as I described in "Fading an Image into the Background." If you've hidden too much of the layer with the layer mask, you can make these areas visible again by painting them back with white on the layer mask.
Personally, I'm pretty happy with that effect so I'll leave it there. You can see the final result here.
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