Round Image Corners in Photoshop (Vector Mask Method)
You can create rounded corners non-destructively by masking your image with a rounded rectangle path. This gives you crisp edges for UI, mockups, or thumbnails and is easy to adjust later. Follow these steps to set a corner radius and clip the image with a vector mask.

Step-by-step instructions
Prepare the layer and add a vector mask
In the Layers panel, click the lock icon to unlock the Background layer (or double‑click it and press OK).
Go to Layer → Vector Mask → Reveal All.
Set up the Rounded Rectangle Tool
Select the Rounded Rectangle Tool (U).
In the options bar, set Radius to 150 px (adjust as needed).
Set the tool mode to Path (not Shape or Pixels).
Draw the rounded rectangle on the mask
Click the layer’s vector mask (white) thumbnail to make it active.
Click and drag to draw a rounded rectangle that covers the entire image area.
Release to apply the path; the image corners appear rounded instantly.
Optional: Adjust the corner radius later
Select the Rounded Rectangle path with the Path Selection Tool (A).
Use Properties (Window → Properties) to change the Live Corners radius value.