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In this video tutorial, Mrs. Ramirez from the Photoshop Training Channel demonstrates how to crop photos into a circle using Photoshop. Although cropping a perfect circle is not directly possible in Photoshop, the use of the frame tool, specifically the elliptical frame option, allows you to achieve the desired circular crop effect. The frame tool is a relatively new feature in Photoshop, and by clicking and dragging on an image, you can create a circular frame for cropping.