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In this tutorial, the presenter demonstrates how to make text or shape layers in Photoshop appear as if they are wrapping around another surface. The key steps include using Photoshop's displacement filter with a background image as the displacement map, adjusting the background with Gaussian blur to remove fine details, and adding a hue and saturation adjustment layer for a more realistic effect. The tutorial emphasizes the importance of considering the light source and surface texture for a convincing result.