Final Output

Step 1: Open the Document

Open a document of any size you desire and type some text on it. It is better to use some broad fonts like what I have used so that the end result looks good.

Step 2: Applying layer styles

Now click on the add layer style icon available at the bottom of the layers palette and apply the following layer styles.

Now select bevel and emboss layer style. In that Select Texture and choose rock patterns and choose any pattern from that.

Therefore your stone textured text has been created. In order to make it more decorative you can continue with the following optional steps.

Step 3: Creating the border

Now create a new layer and ctrl+click inside the thumbnail of the text layer and now the text selected. With the text selected go to Select -> Modify -> Expand and type 3 pixels.

Step 4: Decorating the new layer

Now fill that selection with any color and apply the following layer styles.

Now you should have something like this.

Step 5: Deleting of central portion

Now ctrl+click in the text layer with the new layer still selected and delete the selected portion and you will get something like this.

Step 6: Applying layer styles

Now apply bevel and emboss layer style to the new layer with its default values and you must find something similar to this.

Therefore you are done with it. To apply more layer styles for the border just download layer styles here.

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