We will start by giving a look at the original image, provided by pxleyes. This image is the beginning of our journey into making a fantasy blue bird. The bird can be made of any texture. I decided to use the shiny texture of the metal.

Open a 600 x 800 new document.

Use black as foreground.
Use Polygonal Lasso Tool (L).
Make a selection as shown.
Copy (C), Paste (V).
Name new layer, "Metal".

Follow the directions given in step 3.

We will work on the body, neck, and head of the bird.

Use the Elliptical Marquee Tool M.
Make three selections. (These selections will make a new layer every time you copy and paste them).

Name new layers, "Belly", "Neck", "Head".

We'll work on the belly of the bird.

Filter - Liquify. (Shift + Ctrl + X).
Warp Tool (W).
Brush Size: 125
Brush Pressure: 50

Start pulling the belly down a little, not to much.

Merge down layers, "Neck", "Head". Name new layer, "Neck".

Use Liquify and Warp Tools as you did for the belly.
Brush Size: 125 (try a smaller brush here, 75, 50)
Brush Pressure: 50

Put all the pieces together to form the body. Merge the two layers, "Belly" and "Neck" down. Name new layer. "Body".

Use the Burn and Dodge Tools (O) to give shadows, and highlights to the body of the bird.

Using the Polygonal Lasso Tool (L), make a jagged edges selection on top of the body to form the wing.

Copy (C), Paste (V) selection. Name new layer, "Wing".

Use the Smudge Tool (R).
Spatter Brush 24, change size to 12.
Start smudging down to the right, to soften the feathers.

Follow the settings given for this step please.

You should have something like this by now.
Add the wing to the body. Smudge as much as you can, try to soften the brush to a 75 or 50 opacity. Feathers are soft!

Add a layer style, drop a shadow to the wing.
Opacity: 53
Angle: 30
Distance: 4
Spread: 11
Size: 9
Merge down the layers, "Wing", and "Tail".

Coloring the wing and tail.
Image - Adjustments - Color Balance.
Cyan: -100
Blue: +80

Use Smudge Tool (R).
Spatter Brush 24. Make it smaller: 15 will work well.
Start pulling up the feathers to form a kind of "crest".
You can merge the layers for the body, wing and tail, to form a new layer. Name new layer, "Bird".

The color for the body is a stronger blue.
Image - Adjustments - Color Balance.
(Midtones only)
Cyan: -85
Blue: + 90

This step is described below. Follow directions carefully.

Read this step careful. Directions and suggestion to achieve a good work are given below.

Here is our bird!
Be careful placing layers. In this way you will have everyting in its place.

To draw the curved small lines forming the feathers.
Use a very small brush, hard 3 or even 1 will work well.
Magnify the area for the lines.
Use the Burn Tool (O), and start drawing the lines.

Make a shadow underneath the wing. Use a hard 9 - 13 brush. Opacity 75 - 80.

This is a simple Radial Gradient (G).
Choose two nice blue colors, one darker and other lighter.
Darker blue, (foreground).
Lighter blue, (background).
Draw a diagonal line from center to right top corner of frame.

This is practice step. Look at suggestions below, to achieve a nice shape for your foliage. You will add your foliage on top of the branches of the tree.

It will open a new layer. Name layer, "Foliage".

Look into the green areas of your image source. (Step2).
With Polygonal Lasso Tool make some selections for the branches. Copy (C), Paste (V). Name new layers, "Branch1", "Branch2", etc... It is up to you how many branches your tree will have. After working with Liquify Tool. Use the Image - Adjustments - Hue - Saturation, to give the
branches a brownish, greenish look.

Thank you for following the steps of this tutorial. I hope you enjoyed the making of this beautiful blue bird. Here is the final image.