Step 1 Make a new document of 300x200 pixels. Make a new layer, Select
the on your toolbar.
Once selected change the Rounded Rectangle tool settings to these:
Also make your foreground colour light blue. Then make the button size similar
to this:
Step 2 Now, go to Layer > Layer Style > Blending Options > Gradient
Overlay and enter in these settings:
Then go to Bevel and Emboss and enter in these settings:
You should now have something that looks similar to this:
Step 3 Now hold CTRL and click the Button layer, on your layers palette.
Now go to Select > Modify > Contract and enter in 10 pixels. Once
again go to Select > Modify > Feather and enter in 10 pixels. Select
your Bucket Tool, and set your foreground white. Fill the selection with
white using the Paint Bucket¹ tool.
Final Results Now you can add text, to make the button a little more exciting.
on your toolbar.
Once selected change the Rounded Rectangle tool settings to these: 
