For the background you can choose any type of linen texture; I will use one of these jeans textures ; make sure you adjust the texture to obtain a dark denim background otherwise the embroided text will not look good.
For creating the embroidery effect we need a font type that looks good on that kind of sewing effect. You can embroid any kind of image but for this tutorial I will use a text. So for the embroidery text I will pick this free calligraphy font type called Mardian . Download the font type and install new font in Photoshop like shown in this tutorial.
Convert the Text Layer(s) into a smart object ; you may have more than one text layer so you have to select all of them and turn into a smart object. Call this new layer Embroidery 1. Make two more copies of this layer and call them Embroidery 2 and Embroidery 3.
For each smart object we will add different layer styles and other effects like smart filters. So let's start with the Embroidery 1 layer, Set the Fill to 0% and create a pressed effect using these styles:
The pressed jeans effect should now look like this:
Go to the next layer, Embroidery 2, and add a Pattern Overlay using a pixel pattern with oblique stripe lines; you can set the Pattern Overlay scale to 100-150% . Also you have to reduce the Fill to 0%
Convert the Embroidery 2 layer again into a smart object. Add the following layer styles to create the embroided effect. You can pick whatever color you like for the Color Overlay effect. You can also add a Ripple Filter (Filter>Distort)
Go to the next layer, Embroidery 3. Set the Fill to 0% and add these layer styles to create an embossed effect.
Make a selection using the Embroidery 1 layer (keep the CTRL key pressed and click on the layer thumbnail to make a selection). Go to Select>Modify and choose Expand by 15px.
Create a new layer below the Embroidery 1 layer and call it Pressed Effect. Fill the layer with any color; copy the layer styles from the Embroidery 1 layer and paste the styles to the Pressed Effect layer. Your embroided logo should now look like this:
For the final touches I have added some stitching and sewing effects using these stitch brushes . I have also resized all the text layers to 110% to create a more realistic embroidery.
To make the jeans and embroidery effect more realistic you can add a crumpled paper texture in a new layer above all the other ones; set the blend mode to Overlay or Color Burn, depending on the texture. Set the opacity to a level that creates a soft result.
I have also increased the contrast of the entire image and sharpen the result. So here you have the embroided text effect made from scratch in Photoshop. Hope you like it.
The Embroidery and Sewing Photoshop Tool contains 4 Photoshop actions for creating embroidery and sewing effects with realistic results. The action works with text, shapes and also with graphic images.
The Embroidery and Stitching Creator contains 18 Photoshop actions and 6 bonus actions to help you with the creation process. This pack will allow you to create realistic embroidery, sewing and stitching effects out of any text, shape, raster.