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In this video, Mahalo expert Justin Z. briefly explains what the Sponge tool can do in Photoshop.

Sponge Tool
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The Sponge tool is named because, like a sponge, it will absorb and remove colors based on a brushstroke you perform. Basically, it desaturates the colors in your image by slowly and subtly removing color.

Generally, the tool is best used for over-saturated (too colorful) areas.
1. Click and hold on the "lollipop" tool in the tool bar and select the Sponge Tool in the drop down menu.2. Click and drag over a saturated area to see the effect. If the tool is doing its job correctly, the effect will be very subtle. If it is very noticeable on your first stroke, however, you'll want to make some changes to the tool.3. The top Options panel allows you to make changes.
* You can change the Brush Size and Hardness.
* You can change the mode between Saturate and Desaturate.
* You can change the Flow.
* You can turn on or off the Vibrance, which helps the clipping of your colors. 

Generally, this tool will be used for retouching. It comes in handy for parts of your image that you may find a little too colorful.

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