Fill type with an image
You can fill type with an image by applying a clipping mask to an image layer placed above a text layer in the Layers palette.
Open the file containing the image you want to use inside the text.
Select the Horizontal Type tool or the Vertical Type tool in the toolbox.
Click the Character tab to bring the Character palette to the front or, if the palette isnt open, choose Window > Character.
In the Character palette, select the font and other type attributes for the text. Large, bold, thick letters work best.
Click an insertion point in the document window and type the desired text. When you are satisfied with the text, press Ctrl+Enter (Windows) or Command+Return (Mac OS).
Click the Layers tab to bring the Layers palette to the front or, if the palette isnt open, choose Windows > Layers.
(Optional) If the image layer is the background layer, double-click the image layer in the Layers palette to convert it from a background layer into a regular layer.
Note: Background layers are locked and prevent you from moving them in the Layers palette. Its necessary to convert background layers to regular layers to unlock them.
(Optional) In the New Layer dialog box, you can rename the layer. Click OK to close the dialog box and convert the image layer.
In the Layers palette, drag the image layer so that it is immediately above the text layer.
With the image layer selected, choose Layer > Create Clipping Mask. The image appears inside the text.
Select the Move tool , and then drag the image to adjust its placement within the text.
