The effect of the fabric will perfectly embellish any text created in Photoshop, and the added stroke in the form of a machine stitch with the help of layer styles will give the text the most realism.
Load the fabric texture in Photoshop. Choose a tool Fill (Paint Bucket Tool) (G) and in the settings set Fill Type – Pattern (Pattern).
Now click on the small black arrow to enter the Pattern context menu and select Download pattern (Load Patterns):
Open the previously downloaded pattern in the folder on your computer and select it so that it is loaded in Photoshop.
Create a new document sized 600 × 600 and a resolution of 72 pixels. With the tool Fill (Paint Bucket Tool) (G), fill the created document with the pattern.
Now add a fill layer Gradient (Gradient) by clicking on the icon in the form of a black and white circle at the bottom of the Layers palette.
Double-click on the thumbnail of the adjustment layer and create a radial gradient from transparent to black. Change the Blending Mode of the Gradient Casting Layer to Soft light (Soft Light) and reduce its opacity to 50%.
Thanks to the corrective layer, the fabric pattern looks delicate and slightly lightened.
Now add text to the fabric background. Download the font in Photoshop Lobster.
Add a layer style to the text layer. Casting a shadow (Drop Shadow):
Continue adding layer styles to the text, and this time apply the style. External glow (Outer Glow):
Load the second pattern in Photoshop and use it to apply on the text using the layer style Overlapping pattern (Pattern overlay).
Also add the third pattern from the folder loaded earlier to the text layer to add a machine line to it. To add a line, also use the Stroke layer style: