How to Make the Most Realistic Shadows in Photoshop (3 Steps)
Realistic shadows make composites believable. This method starts with a drop shadow, breaks it onto its own layer for full control, and then shapes, blurs, and fades it to match your scene’s light. You’ll finish with a soft, tapered shadow that looks natural and blends seamlessly.

Step-by-step instructions
Generate a base shadow and separate it
Select the subject layer.
Open Layer → Layer Style → Drop Shadow.
Set Opacity to 100%; set Distance = 0, Spread = 0, Size = 0; click OK.
In the Layers panel, right-click Effects under the subject → Create Layer → OK to put the shadow on its own layer.
Position and angle the shadow
Select the shadow layer and press Ctrl+T (Cmd+T on Mac) for Free Transform.
Right-click inside the transform → Flip Vertical, then drag the shadow to the subject’s base/feet.
Rotate slightly to align with the ground.
Right-click → Skew to match the light direction; Right-click → Scale to elongate; press Enter to apply.
Add realistic softness with variable blur
Go to Filter → Blur Gallery → Field Blur.
Place a pin far from the subject and increase blur to soften the distant edge.
Place another pin near the contact point and set blur low (0–small).
Click OK to apply the blur.
Conform the shadow to the ground
Press Ctrl+T (Cmd+T) → Warp.
Gently pull control points to lift or tuck areas of the shadow so it hugs the surface.
Press Enter to confirm.
Fade the shadow as it recedes
With the shadow layer selected, click Add Layer Mask.
Press D to reset colors; choose the Gradient Tool (G).
Set gradient to Black → White, Linear, Mode: Normal, Opacity: 100%.
Drag from the far edge toward the subject to create a natural fade.
Open Window → Properties and lower Mask Density; adjust the shadow layer Opacity to taste.