Add a Dreamy or Misty Effect To Your Photos

1. Begin by choosing an image, preferably something nature related. I chose this:

2. Go to image>adjustments>levels (Ctrl+L) and brighten the image a bit. You may also go to image>adjustments>brightness/contrast. This is what I came up with:

3. Hit 'D' on your keyboard to reset your foreground and background colors. Then hit 'X' to switch them so your foreground color is white. Next, Go to filter>distort>diffuse glow and apply similar settings to this:

You should get something close to this:

4. On the same layer, enter quick mask mode by pressing 'Q'. Go to filter>render>difference clouds and then hit 'Q' again to exit quick mask mode. Your picture should now have random shaped 'dancing ants' all over it.

5. Do not deselect yet. Select any decently large brush size, change the opacity to 90% and leave the flow at 100%. Brush the entire image, it should then look something like this: (you can deselect now by doing Ctrl+D)

6. Duplicate the layer (Ctrl+J), you should now have a total of 2 layers. Select the top layer simply by clicking it in the layers palette. Go to filter>blur>gaussian blur. Apply these settings:

This is what yours should look like:

7. Still working with the top layer, on the top left of the layers palette change the blending mode form normal to linear burn. You now should have a neat looking dreamy or misty scene!

You may press Ctrl+E to merge the top layer down and then save or edit as you wish.