Resources Used
Princess:
http://marjoleinart-stock.deviantart.com/art/Fairytale-Castle-86-97074824
http://marjoleinart-stock.deviantart.com/art/Fairytale-Castle-03-97071832
Fairy:
http://mjranum-stock.deviantart.com/art/Fairy-2-51370052
Jerusalem:
http://www.photos8.com/view/jerusalem-other.html
Tower:
http://little-stock.deviantart.com/art/Tower-Stock-4-57218825
http://little-stock.deviantart.com/art/Tower-Stock-Pack-71512021
Hills:
http://fantom89.deviantart.com/art/Egypt-132204357
Magnolia:
http://piyapolo.deviantart.com/art/Magic-Magnolia-98745288
Abstract Glow Brush:
http://ro-stock.deviantart.com/art/Abstract-Glow-92060729
http://pewterz.blogspot.com/2010/02/glow-light-brushes-free-photoshop.html
Font:
http://www.searchfreefonts.com/free/anglo-text.htm
Birds:
http://flordelys-stock.deviantart.com/art/Birds-38405757
Flowers:
http://chiyo-tsukiko.deviantart.com/art/flowers-84761742
step 1:
Open a new canvas in Photoshop with Width=2631,Height=1500px.Make sure Color Mode is set to RGB Color, if the purpose is for poster designing then set the mode to CMYK.

step 2:
Using the Gradiant Tool(G) colour the canvas as shown with sky blue and white

step 3: 1)
Import the Princess image onto the canvas and place it on the right corner.

2) Color correct the Princess layer using the curves(Image>Adjustments>Curves),set the curves as shown.

step 4: 1)
In our princess layer the Castle is not complete,so cut a part of another image using the Pen Tool to complete the castle.

2)Now import the image onto our canvas and transform it using the
Move Tool(V) to fit the prospective.Then name it as Castle Tower'.

3)With the Soft Round Brush(B) selected erase the part of the layer which is overlapping the Princess layer.

4)Using the curves color correct the 'castle tower' and make sure it blends with the princess layer.

step 5:
Now import the city image onto the canvas and place it under the princess layer.

step 6: 1)
Import a tower image into photoshop and remove the background using the Magic Wand Tool (W).

2)Now place the image above the 'city' layer.Since the tower is
portrayed as a far object the edges should not be sharp so let's blur
the edges.Select the mask of the layer by clicking on the thumbnail of
the 'tower' holding 'Ctrl', then inverse the mask holding
Ctrl+Shift+I.Now set the feather of the to 1px,and featherout the edges.

3)Duplicate the Tower layer and name it 'tower2? and set to Black and
White(Image>Adjustments>Black and White) and set the values as
shown.

4)Now color correct the layer using the Color Balance.Set the Tone
Balance to Midtones and set Color Levels to +3 0 -9.Then erase the grass
part of this layer to show the grass green.

5)Now duplicate the tower2 layer to represent the sun rays falling on
the tower.So brighten the tower3 and erase the darker side of
shadows,and color correct the layer using the curves as shown.

step 7: 1)
Now import another tower image onto the canvas and place it on the
left corner to portray a very far away object.
Then using the Exposure(Image>Adjustments>Exposure) set the
Offset=+0.0755,Gamma Correction=1.26.

2)Since this tower is portrayed as a far away object than the
previous tower it should appear blured than the 'tower2?.So add Gaussian
Blur of Radius=1.5px.

3)Now duplicate the 'tower3? and increase the Brightness=57(Image>Adjustments>Brightness/Contrast).

step 8:
To complete the perfect background add some hills.
1)Import the hills image and place it under all the layers.

2)Now color correct the hills layer using the curves.

step 9:
As we discussed in the step7 add Gaussian Blur of Radius=2.2px.

step 10:
Increase the Exposure levels to Exposure=+0.24 , Offset=+0.0755 , Gamma Correction=1.24.

step 11:
Make a new layer above all the layers and add some clouds using the clouds brush with the white color selected.

step 12:
Cutting the plants from their background is tricky using the Magic
Wand Tool,so let's use another advanced method of cutting the image.
1)After importing the plant image select the Blue layer from the
Channels Pallet.

2)Then open Channels from Image>Calculations and select Blue from the Channel drop down list.

3)Now by using the Levels(Image>Adjustments>Levels) and set the levels so that the plant turns black and BG turns white.

4)Load the plant mask from Select>Load selection.In Load Selection select Alpha1 from the drop down list of Channel.

5)Place the plant on the left bottom corner.Since we are focusing on
the princess the plant must be blured, hence add Gaussian Blur of
Radius-2.6px.

step 13:
Import a birds layer and add Gaussian Blur of Radius=1.1px.

step 14:
Now import the 'Fairy' onto the canvas and place it in such a way that the Fairy is giving something to the princess.

step 15:
Using the Clouds Brush paint some clouds on the Fairy as if she is sitting on the clouds.

step 16:1)
Having the Fairy layer selected change it's Brightness/Contrast to Brightness=38,Contrast=17.

2)The back of fairy appears to be dark,so draw a mask around the dark
area using the Lasso Tool(L) and set it's feather to 60px.

3)Now add Diffuse Glow with Glow Amount=11,Clear Amount=20.

step 17:
Now add some Glow to portray that the Fairy is giving some power to
the Princess.
1)Using the Glow Brush(B) paint the glow as shown with the sky blue
color selected.

2)Using the Soft Round Brush(B) paint on the previous glow with the
same color in a new layer,and set the Layer mode to Vivid Light.

3)Again using the glow brushes add more glow as shown.

step 18:1)
Using the Type Tool(T) type a title(Princess Diaries),and place the text layer under the 'Plant' layer.

2)Select the Layer Style of the text layer and select Bevel and
Emboss and also select Contour and choose Rounded Steps from the drop
down list of Contour and set the range to 98.

Final Output:


