Polaroid effect is a pretty cool effect that's very popular among Web 2.0 Developers and some end users. It gives a very cool layered look to your Photos or web site. The Default word press theme Kubrick uses Polaroid effect. Let's get started.

1. Duplicate your original layer and then click to select the duplicate layer, Now select "Stroke" by clicking "Add a layer style" button as show in the image below.

2- That will open Layer style dialog box and here you need
to adjust some settings to achieve the effect you want. Slide the size bar to 8
and select position as Inside. click on color and select white.

3- Now select the "Drop shadow" layer style from right side menu and here you
need to adjust the "Angle" to achieve the effect you want. For our tutorial we
will use 75.

4- Now press "CTRL +T" on your keyboard and rotate or resize the Image to
your liking. Below is your final Polaroid Photo Effect.

5- You can also use transparent background to use it on web sites or use a
solid color background.

Settings we used are just for this particular tutorial. You can and should
play around with settings to to get the effect you want.