Creating a Text Effect With Cigarettes

Start by creating a rectangle using rectangular shape tool.

Double click the layer to open layer style window. Apply layer style with the settings shown.

Create a rectangle almost one-third in height of the first rectangle using rectangular shape tool.

Change the layer mode to linear burn.

Create a yellow thin rectangle for the golden band over the filter. Change the layer mode to linear burn.

Create two very thin ellipses and place on the top and bottom of cigarette.

Create some lines using line tool.

Change layer mode to luminosity and opacity to 5%.

Create a random ash shape on top of the cigarette using brush tool.

Double click the layer to open layer style window. Apply layer style with the settings shown.

Create a few patches of red and orange color using brush tool.

Type your text using your favorite font. Select and merge all cigarette parts.

Duplicate layer. Press Ctrl+T. Right click the layer and select warp. Try to warp the cigarette on the alphabet by dragging various handles in different angles.

Similarly warp another instance of cigarette layer in shape of other alphabet.

Press Q to enable quick mask. From filter menu select render>>difference clouds.

Press Q to disable quick mask. Create a new layer and fill it with white color.

Press Ctrl+T. Right click the layer and select warp. Adjust nodes to get the shape as if the smoke coming out of the cigarette.

You can also use it as a logo by typing details below the text.