How to Create a Bottle Label Mockup in Photoshop
You’ll turn a simple rectangle into a Smart Object, distort and warp it to match the bottle, and mask it to the label area. Then you’ll place your label design into the Smart Object and use blending options for a realistic finish.

Step-by-step instructions
Draw the label base
Select Rectangle Tool (U) and draw a rectangle over the label area.
Click Fill and choose any color.
Right-click the rectangle layer → Convert to Smart Object.
Lower Opacity so you can see the bottle beneath.
Fit the label to the bottle
Press Ctrl+T (Cmd+T) → right-click inside the box → Distort.
Drag corner handles to align with the label’s perspective.
Right-click → Warp and adjust handles to match the bottle’s curvature.
Press Enter to apply; set Opacity back to 100%.
Organize and mask the label area
Rename the Smart Object layer (e.g., “Your Image”).
Press Ctrl+G (Cmd+G) to group and name it “Design”.
Disable the group; select the background bottle layer.
Choose Quick Selection Tool (W) and select the bottle label area; re-enable the group and click Add Layer Mask on the group.
Place your label design into the Smart Object
In the “Design” group, double-click the Smart Object thumbnail to open it.
Go to File → Place Embedded and insert your label artwork.
Resize/position as needed and press Enter.
Go to File → Save, then close the Smart Object document to update the mockup.
Blend the label realistically
Select the “Design” group and change Blend Mode to Linear Burn.
Click the FX icon → Blending Options.
Under Blend If, hold Alt (Option) and split the Underlying Layer sliders to let highlights/shadows show through realistically.
Click OK.