Topics Covered in This Photoshop Tutorial:
Creating a Smart Object for Non-Destructive Editing, Mastering the Shadows/Highlights Adjustment, Advanced Masking Techniques to Selectively Remove Unwanted Adjustments
Exercise Preview

Photo by Dan Rodney
This tutorial uses the file 'Hershey trolley stop.tif' from the Photoshop Class folder. Make sure you have this file available before starting the exercise.
Exercise Overview
This severely underexposed image presents a classic challenge—critical details are lost in shadow, rendering the trolley stop sign completely illegible. We'll demonstrate how to rescue this image using Photoshop's powerful Shadows/Highlights adjustment while maintaining professional image quality. You'll also master Smart Objects, a cornerstone technique for non-destructive editing that every serious photographer and designer should have in their toolkit.
Tutorial Workflow Overview
Convert to Smart Object
Transform the background layer into a Smart Object to enable non-destructive editing capabilities
Apply Shadows/Highlights
Use the Shadows/Highlights adjustment to recover detail and balance the exposure throughout the image
Mask Unwanted Areas
Selectively remove the adjustment from areas where it creates undesirable effects using Smart Filter masks
Creating a Smart Object
While adjustment layers remain our preferred method for most color corrections due to their flexibility and non-destructive nature, the Shadows/Highlights adjustment presents a unique challenge—it's not available as an adjustment layer. Fortunately, Photoshop provides an elegant solution through Smart Objects, which allow us to apply this crucial adjustment while preserving complete editability. Smart Objects have become even more essential in modern workflows, especially when working with high-resolution images and complex compositions.
From the Photoshop Class folder, open the file Hershey trolley stop.tif.
Navigate to Layer > Smart Objects > Convert to Smart Object. This conversion creates a protective container around your original image data.
In the Layers panel, rename Layer 0 to Hershey for better organization—a practice that becomes crucial in complex projects with multiple layers.
Now that we've established our non-destructive foundation, let's tackle the exposure problems that plague this image.
Smart Objects allow you to apply filters and adjustments non-destructively. Unlike adjustment layers, the Shadows/Highlights adjustment can only be applied directly to pixels, making Smart Objects essential for maintaining editing flexibility.
Smart Object Creation Steps
Ensure you have the correct source file for this exercise
This enables non-destructive editing for the upcoming adjustments
Proper naming helps maintain organization in complex projects
The Shadows/Highlights Adjustment
The Shadows/Highlights tool represents one of Photoshop's most sophisticated exposure correction features, using advanced algorithms to selectively adjust tonal ranges while preserving detail and avoiding the harsh, unnatural look that often results from simple brightness adjustments.
The shadow areas throughout this image are severely underexposed, obscuring critical details. Access Image > Adjustments > Shadows/Highlights to begin the correction process.
Notice how even the default settings provide immediate improvement—this demonstrates the tool's intelligent algorithms at work. For precise control, activate Show More Options at the bottom of the dialog.
The expanded controls allow for nuanced adjustments that can make the difference between amateur and professional results. Experiment with the settings to develop your eye, or use these professionally tested values as your starting point:
ShadowsHighlightsAmount: 45% Tone: 57% Radius: 34 px AdjustmentsAmount: 6% Tone: 73% Radius: 39 px Color: +20 Midtone: +5 Click OK to apply the adjustment. The beauty of Smart Objects becomes immediately apparent—your original image data remains untouched.
Observe the transformation in the Layers panel, where you'll see the Shadows/Highlights adjustment listed beneath the Hershey layer as a Smart Filter.
Toggle the eye icon
next to Shadows/Highlights several times to appreciate the dramatic before-and-after difference—this immediate comparison capability is invaluable for client presentations and quality control.Ensure the Shadows/Highlights adjustment remains visible
before proceeding to the refinement stage.
While the overall correction has dramatically improved the image, professional work often requires selective application of adjustments. Let's refine our work with precision masking.
Recommended Settings Configuration
Shadows/Highlights Adjustment Process
Access the Adjustment
Navigate to Image > Adjustments > Shadows/Highlights to open the dialog box
Enable Advanced Options
Check 'Show More Options' at the bottom to access granular control settings
Fine-tune Parameters
Adjust Shadows Amount (45%), Tone (57%), Radius (34px), and Highlights settings as needed
Preview Your Changes
Toggle the Shadows/Highlights eye icon in the Layers panel to compare before and after results
Removing the Adjustment Where You Don't Want It
Even the most skillful global adjustments can benefit from selective refinement. Smart Filter masks provide the perfect solution, allowing you to hide the adjustment in specific areas while maintaining the ability to restore it later—a flexibility that proves invaluable in client work and iterative design processes.
In the Layers panel, locate and click on the Smart Filters layer mask as illustrated below. The selection brackets around the mask thumbnail confirm your selection and indicate you're ready to edit the mask.

Select the Brush tool
from your toolbox—your primary instrument for precise mask editing.Click the Default colors icon
in the Tools panel to reset your color swatches.Click the swap colors icon
to position black as your foreground color—essential for the masking operation that follows.Verify that your Foreground color is pure black and your Background color is pure white. Understanding layer mask fundamentals is crucial for professional image editing:
- Painting with black = hide the adjustment effect
- Painting with white = reveal the adjustment effect
- Painting with gray = partially hide the adjustment effect
Apply black paint to areas where the adjustment appears too strong or unnatural, such as the shadow areas of the trees on the right side of the image, where the lightening may have created an unrealistic appearance.
If you inadvertently hide too much of the adjustment, you have multiple recovery options: use Edit > Undo for immediate correction, or paint with white to gradually restore the adjustment effect. This flexibility exemplifies why Smart Objects have become indispensable in professional workflows.
Excellent work—the transformation from an nearly unusable underexposed image to a professionally balanced photograph demonstrates the power of combining technical knowledge with artistic judgment. Save your work to preserve both the final result and the complete editing history that Smart Objects provide.
Layer Mask Fundamentals
Black Conceals
Painting with black on the mask completely hides the adjustment effect in those areas. Use for precise removal of unwanted corrections.
White Reveals
Painting with white on the mask fully shows the adjustment effect. Use to restore corrections you accidentally removed.
Gray Softens
Painting with gray creates partial transparency, allowing you to reduce the adjustment strength rather than removing it completely.
Smart Filter Masking Workflow
Brackets around the thumbnail indicate the mask is selected for editing
Use Default colors icon then Swap colors icon to achieve this setup
Focus on areas like tree shadows where the adjustment creates unnatural effects
Alternatively use Edit > Undo to reverse recent mask changes
Smart Filter masks allow you to hide and reveal adjustments at any time without permanently altering your image data. This flexibility is crucial for professional photo editing workflows.