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This lesson demonstrates how to place a flag inside type, and my country’s flag (UK’s Union Flag) can be downloaded Here. Unzip the file and open it onto Photoshop’s workspace. This website Here has an A to Z list of world flags.
Undo and Navigation Steps
Two ways of undoing steps are from the top menu, Edit then Step Backwards. Alternatively, click a previous snapshot in the History Palette.
Navigate (zoom in and pan) your image using the Navigator Palette,
or the Zoom Tool. 
Activate The Hand Tool by tapping the Spacebar, keeping the Spacebar pressed, pan your image in the usual way. 
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Open your flag onto Photoshop’s workspace.
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Then from the Layers palette, double-left-click the Background layer, then reply OK to the subsequent New Layer dialogue box. Your layer will change to the following - Layer 0. Layers Explained Lesson Here!
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From the top menu, choose Layer then choose New then choose Layer.
There is no need to name this layer, click OK. Important! Click to highlight (activate) the flag layer - Layer 0.
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Now, from the toolbar, activate the Horizontal Type Tool.
And choose a large blocky font - I am utilising a font named SF Distant Galaxy Alternative, which is perfect for this type of effect. Note: The size of your canvas dictates the size of your type - you are aiming to apply a font that is as large as your canvas, therefore experiment. Remember, you can always enlarge your font with the Free Transform tool, if necessary, later. I chose the following settings, and I cleared the type’s size, and typed in 200.
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From the top menu, choose Layer then choose Rasterise then choose Type.
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Now, working between the Move Tool  and the Free Transform tools, (top menu then Edit then Free Transform). Expand and reposition your text - as demonstrated below.
 
Then click the Commit Transform tick. 
 
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From the toolbar, activate the Magic Wand Tool. 
Ensure Sample All Layers is Not ticked, as shown below.
And left-click inside the white type to surround it with a selection marquee.
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Then from the top menu, choose Select then choose Inverse.
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Now, from the Layers palette, activate (highlight) the flag layer - Layer 0.
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And from your keyboard, press the Delete key. Your text will then change to the following.
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From the Layers palette, click to remove the eye icon from the text layer - this hides the layer’s visibility.
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Hiding the layer’s visibility changes your type to the following.
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From the top menu, choose Select then choose Deselect. This removes the marquee.
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To finish, click the Add Layer Style (f) or (fx) icon at the foot of the Layers palette, and from the drop-down menu, choose, Drop Shadow then Bevel and Emboss, and apply a subtle bevel and shadow.
Your flag-type is complete and ready to save. Depending on your needs, you may wish to Resize it.
Tip
If necessary, smooth the type’s edges with the Blur Tool - using a very low Opacity.
Note
I finished by creating a new gradient layer, I then applied a perspective shadow to my text.
Wendi E M Scarth. Top of Page - Home.
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