Photoshop has no automated drop cap feature. You will have to create two separate text elements and "fake" the drop cap.

In reality, Photoshop is not designed to be a type-intensive application. If it were, it would at least have a glyphs panel.

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: How to add drop caps in photoshop? It's an option in InDesign, CSS, and MS Word. I'm not finding it in Photoshop CS5.

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