Final result of this tutorial.

For this tutorial we require some resources.

A background scenery, dragon image, water splash, moon, fire image and lightning brush.

Water splash image. Refer this tutorial for creating splash.

Dragon picture I got it from www.gee.ru. Copyrights of this picture belongs to the respective owner.

Brushes – You can download it from here.

To start, first lets start with taking out the background color from the dragon image.

By using the pen tool or the extract tool from the filter menu we can remove the background color.

Now lets place the edited dragon, on to the scene.

Place the water splash on the top layer and below the dragon head layer.

Load the downloaded. If you are not familiar with loading the brush follow the step.

Newly loaded brush will be at the bottom.

Select the lightning brush. change the size to 300. Make a new layer and click once.

Apply a light yellow color (#ffe44d).

To create a water depth around the splash – create an oval (#2c392f )as below and apply radial blur from the filter menu.

Change the blur amount to 15.

Place it below the splash layer.

Now its turn to give a sunset effect. For this we have to change the settings in the(ctrl+U) hue and saturation panel.

The result we be as below

Now give some color to the splash. Applylight yellow color overlay (#ffeba7)

Take the flame image and place it carefully inside the mouth of the dragon. It should be in the centre so should look like its coming from the throght.

Next apply a gradient from the top to make the sky darker. Select black color foreground andbackground color to transparent.

Arrange the layer just above the scene layer and change the layer blending mode to Overlay.

Place a moon.

Select the dragon layer .

Go the filters > Render >Lighting effects > change the settings as below.

The final results will be like this.