1. Create a new document with 500*500 as px dimesions and unlock the background layer.
2. Hold shift and drag out a rounded rectangle tool and position it by using move tool.Rasterize the layer.
3. Select the shape by holding the ctrl key and clicking on the layer.
4. Select the gradient tool and make a dark to light blue gradient and drag the gradient on the canvas.
5. Deselect the selection . Select elliptical marquee tool and draw an ellipse on almost half of the rounded rectangle at the top while holding down alt key.
6. Right click on the selection and select inverse. Select magic wand tool and deselect the empty area by holding alt key.
7. Go to select->modify->feather and feather it by 3 px.
8. Open the gradient editor and make a foreground to transparent gradient and set foreground color to white. Drag the gradient from top to bottom of the selection.
9. Open the blending options of the shape layer : Drop shadow (blend mode-normal , opacity -90 ,angle-20)
10.Crate a new layer and select shape tool and add white search shape to the button. Merge all the layers together.
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