adobe photoshop - How to Insert an Image in to an Ellipse and Hide Overflowing Parts

I'm trying to insert an image in to an ellipse shape layer, I need to hide the overflowing parts around the circle/ellipse.

How do I insert an image in to a circular selection and hide the parts that are outside the ellipse using Photoshop?

Essentially, I want to put a normal image in to a circular object, creating a round image.

Answer

1. 
   

   Paste your image in to Photoshop. Drag and drop or use Open dialog

   
   


2. 
   

   Create the shape layer (ellipse).

   
   


3. 
   

   Make sure your image is above the shape layer in the Layers panel.

   
   
   

   

   
   


4. 
   

   Right click your image in the layers panel, and choose Create Clipping Mask.

   
   

   

   
   

Et voila! A non destructive method for creating circular or elliptical images.

I know this has already been answered with a very similar answer, but I felt it wasn't descriptive enough. Screenshots make a lot of difference.