Rounded Rectangle Tool

The Rounded Rectangle Tool creates rectangular shapes and paths (shape outlines) with rounded corners.

  • In the Toolbox, select the Rounded Rectangle Tool.
  • In the Options bar, choose drawing mode: to create vector shape layers click Shape layers button ; to draw paths (shape outlines) click the "Paths" button; to create rasterized shapes in current layer click Fill pixels .
  • In Radius field, set corner rounding amount.
  • Click on next to button on the Options bar to set geometry options.
  • Choose shape color.
  • Drag on the image.
  • When creating multiple shapes, use selector on the Options bar:
    • Create new shape layer - to create every new shape in a separate layer
    • Add to shape area - to create mutiple shapes in the same vector shape layer.
    • Subtract from shape area - to subtract shapes from the current shape layer.
    • Intersect with shape area - to intersect new shapes with existing one(s) in the same layer.
    • Exclude overlapping shape areas - to create new shapes in the current shape layer subtracting overlapping areas.
  • To apply some special effects to created shape layers, choose a style in Style picker (Options bar).
  • When creating paths, you can select add, subtract, intersect and exclude overlapping modes.
  • Working in Fill pixels mode you can also In the Options bar, choose opacity and blending mode.

Tip. Just in case you didn't know, the Rounded Rectangle tool is also available in Photoshop Elements that is way cheaper version.

And if you believe, Photoshop Elements lacks some other important feature, be sure to visit this page.