Quick & Dirty Steps
Fade picture to gradient
- Open desired picture.
- Create new blank layer and drag underneath your picture.
- Fill the blank layer with desired color.
- Select your image layer.
- Add a Layer (Raster) Mask.
- Choose Gradient Tool. Then Choose Black to White Gradient.
- Drag in the direction that you want to fade. Repeat until you're happy with it.
- If you wanted to blend it with another image, place the image layer below your original image layer.
- Then repeat steps 6 and 7.
Like I said this is a quick&dirty tutorial. Therefore the two pictures don't make sense together.