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In this video, Mahalo expert Justin Z. explains how the Rounded Rectangle tool works in Photoshop.

Rounded Rectangle Tool
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The Rounded Rectangle tool is a path tool that allows you to create a rectangle shape with rounded corners. The tool is best used for creating masks but can be used for graphic design purposes to create shapes.
1. Click and hold on the solid rectangle near the bottom of the tool bar and drag down to the Rounded Rectangle Tool in the drop down menu.2. Click and drag across your image to create a selection.
* With this tool selected, you can create masks with very exact dimensions and specifications. The other shapes will add to your mask creating options as well.
* With this tool you can also create shapes filled in with colors and separate layers, but the most common use for this tool is creating masks.

Rounded Rectangle Tool Options
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In the Options panel at the top of the workspace, the first button on the left is the Shape layers button. This allows you to automatically create shapes in your image that will be separate layers. The second button is Paths. This allows you to create selections that can be made into masks for image manipulation.The third button is Fill pixels. This will simply create a shape that is filled with a color and is uneditable.The second part of the whole panel allows you to quickly swap between different path creation tools. This shows how the pen and shape tools are united as one main function. Using all of these to their maximum potential allows you to create very precise and controllable masks, making for very easy photo manipulation.One extra option you have with this shape tool is the ability to change the radius of the curves around your square. The higher the pixels the larger the radius.The third part of the tool bar allows for different options on path and shape customization. You can add path areas to allow for combining paths, you can subtract from a path area, you can intersect them and you can create paths that exclude from other overlapping paths. The Exclude overlapping path areas tool is very simple at first but grows in complication and power as you learn to use it more. It's definitely a tool for those with patience as you get to know and understand it better, but it will prove completely worth it when you see what it can do for you.

Read more by visiting our page at:
http://www.mahalo.com/learn-adobe-photoshop-rounded-rectangle-tool/