In this tutorial I will show you how to create The Chronicles of Narnia logo.
Create a new document (mine is 1600×560 px) and write “The Chronicles of Narnia”. “The Chronicles of” and “Narnia” must be on two separate layers. Set letters tracking to 100 for “Narnia” and to 50 for “The chronicles of”.
I use Narnia font from Dafont.com.

Double click on “Narnia” layer and set the following layer styles.

Right click on “Narnia” layer and choose “Copy layer style”, the on the “Chronicles” layer and “Paste layer Style”. Double click on the “Chronicles” layer and make the following style adjustments.

Select Pen tool and create outlines for the half of banner. Something like this:

Create new layer, click “Load path as selection” on the Paths palette and fill the selection with yellow.

Select Burn tool with Exposure set to 50% and start darkening the folded places of banner. Use selection tool to isolate different parts when you need to create hard borders between the light and shadow areas. Use Dodge tool to lighten raised parts.

Duplicate the layer with banner half and mirror it with Edit - Transform - Flip Horizontal. Merge layers with two halves by pressing Ctrl+E.

The shadows are too saturated, we need to make them a little paler. Go to Image - Adjustments - Replace Color and click on any shadow area and reduce Saturation and Lightness.

Double click on the layer with banner and apply the following layer styles.

Select Type tool and create some text on the banner with (black color, Times New Roman, Tracking=-75, Faux Bold, Small Caps).

Select Warp Text tool and deform text a little with Arch style.

Place the photo of sky with clouds to the background. I used this one from SXC.

Ctrl+M to call Curves window. Adjust the contrast of sky to make it look spectacular.

Create a new layer beneath the banner. Select Pen tool and create a shape like this.

Fill the shape with #be8649 and mirror it just like we did with banner.

Double click on the layer and apply the following layer style.

Create a new layer and make a selection with Polygonal Lasso tool for the sword blade. Fill it with #a7b6b9.

Double click on the layer and apply the following layer style.

Ctrl+J to duplicate the layer. Then Ctrl+T and narrow the copy to make the blade gutter.

Double click on the layer and change Bevel and Emboss settings.

Create a new layer above the sky, make a selection with Elliptical Marquee tool and fill it with pale pink #d09ea1.

We’re going to apply some filters to turn this circle to glow. Go to Filter - Distort - Polar Coordinates (Polar to Rectangular), then Image - Rotate - 90 CCW. Apply Filter - Stylize - Wind (check Wind, From the Left) and press Ctrl+F several times to repeat the last filter. Apply motion blur (Filter - Blur - Motion Blur) to soften the effect.

Rotate the image 90 CW, change coordinates from rectangular to polar and set the layer blending mode to Linear Dodge.

Create gradient like on the picture below (opacity from 100% to 0%, colors are #fbf27c and #f5bf62). Create new layer, ctrl+click on the layer with glow and fill the selection with radial gradient.

Take Burn Tool with Exposure set to 90% and darken the top half of the glow.

Take Soft Round brush, change it’s parameters like shown below and paint some magic dust with white color on a new layer.

Select Crosshatch brush from Assorted brushes and add rays to the biggest specks of dust.

Create new layer below the banner. Make a selection for the banner shadow with Elliptical Marquee tool. Right-click on selection, choose “Feather” and set it to 15. Fill the selection with black, change layer opacity to 80% and blending mode to Multiply.

That’s it! Thanks for reading.