We can soften the edges a little by using a drop shadow, which will also help give the picture a sense of depth. Right click on the layer that you want to add the drop shadow to in the Layers Window and the menu opens. Select Blending Options and left click to open the Blending Options Menu Window. 
Which looks like this. Ticking the tick box beside Drop Shadow will make the drop shadow appear. Clicking on the words "Drop Shadow" will highlight that box in blue to show it is selected, and bring up the Drop Shadow Menu. We have selected an opacity of 80%, with the "light" coming from an angle of 141 degrees meaning the shadow will be along that plane. Adjust the Distance, Spread and Size sliders to achieve your desired effect, so long as the Preview tick box is ticked you will see any changes you make as they happen on the image.
Click Ok when you are happy with what you have done. 
And the Owl now has a drop shadow to soften the edges and add depth. 
Now we are going to add another image in.
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