1. To begin with, create a new file, with dimensions around 400 x 400 pixels. Secondly, place the object you want reflected in a conveniant place so that, both, the object and the reflection fit perfectly in the image. 2. Duplicate the layer which holds your object (Layer > Duplicate Layer...). Once that is done, flip the layer which is the duplicate of the original by going to Edit > Transform > Flip Vertical. Next, with the same layer selected, drag it to the bottom of the original so that it looks as if there is a mirror under the original. Once that is done, drag the original layer (located in the layers palette) above the duplicate. 3. Next, with the bottom layer selected, turn on the Quick Mask Mode (Q). For the realistic fade of the reflection, we need to use the gradient, with foreground colour set to black and background colour set to white. Click and drag the gradient from the bottom of your image to the space between the object and the reflection. 4. Without doing anything, hit Q once again to exit Quick Mask Mode. There should be an area selected, we need to inverse this selection because at the moment it is the wrong area to delete. To inverse the selection, hold Ctrl + Shift and hit I. To delete the selection, hit Delete (Tip: hit Delete as many times as you choose, depending on how invisible you want the reflection to be). Hit Ctrl + D to deselect the selection. 5. The affect is realistic isnt it? Make further customizations to the result if you wish.