Creating Paper Folds and Creases

Step 1

Create a new layer on top of the PAPER TEXTURE layer and name it FOLDS.

Step 2

Select the FOLDS layer and go to the menubar and select: LAYER > CREATE CLIPPING MASK (Alt+Ctrl+G in Windows).

Step 3

Select the GRADIENT TOOL from the tools palette and select the folds gradient we’ve just previously created.
With the FOLDS layer selected, place the folds gradient clicking on the exact bottom of the paper texture (1) and without releasing the mouse, drag it to the exact top of the paper texture (2) pressing SHIFT to make a perfect vertical gradient.

Step 4

Now that you’ve just applied the gradient to the FOLDS layer, go to the LAYERS palette and with the FOLDS layer still selected, choose MULTIPLY as the layer blending, and set opacity to 50%.

The MULTIPLY blending mode will mix the grays with the texture, and the 50% opacity value will make the shadows very subtle.

I selected these values because they look good, but it is a good idea to experiment with other blending modes and opacities to create different illumination effects.