Create a stitched text effect

1. Create a new document:

2. Set the foreground and background color as shown in the image ,and fill area with foreground color.

3. Go to filter>filter gallery>sketch>halftone pattern and apply effect shown below:

4. This will create like this image:

5. Go to filter>filter gallery>artistic>smudge stick and apply effects shown below:

6. Main denim texture will be created:

7. Now go to filter>filter gallery>texture>grain and apply effects:

8. Make a duplicate of background layer and make it invisible.

9. Select the original "background" layer once again and set its hue/saturation from image>adjustment>hue saturation.

10. Go to image>adjustment>levels and adjust shadow to darken it more.

11. Create a name on it with white color:

12. Leave more space between letters.

13. Make the background copy visible and put it at top then press ctrl and click on text layer.

14. Select the background copy layer again and press ctrl + J. it will make a copy of selected region i.e. Layer 1.

15. Make a duplicate of layer 1 And change its blend mode to soft light and decrease its opacity to 50%.

16. Change blending options to adjust inner shadow as:

17. Make the duplicate of text layer and move it at top,and make original one's invisible.

18. Change the text layer into shape.

19. Pick the line tool from shape option and select dotted lines from stroke options.

20. Open the blending option of duplicate text (stitched) layer and apply bevel and emboss.

21. Select the texture copy layer and press ctrl and click.

22. Click on the highlighted button and then on hue/saturation

23. Change hue/saturation value.

24. Now,click on the same button again and click on levels and then adjust it.

25. Now choose the brush preset and adjust it settings as shown below:

26. Select the original text layer and right click on it and create work path.

27. Add a new layer and change foreground and background color.

28. Select direction selection tool and right click on screen and choose stroke path.

And press enter to make workpath invisble.