A Favicon is a little custom icon that appears next to a website's URL in the address bar of a web browser. They also show up in your bookmarked sites, on the tabs in tabbed browsers, and as the icon for Internet shortcuts on your desktop or other folders in Windows.
Let's BeginBecause 16 x 16 is such a small canvas area, it can be very difficult to be creative. So instead start your project with a canvas set at 64 x 64 (always use even multiples when you plan on resizing files). Do this by selecting File>New, and opening a new canvas that is 64 x 64 pixels in size.
The DesignIf you already have a logo you should reduce it to the 16 x 16 size to see if it holds up. If it doesn't look good at this size, work with the 64 x 64 canvas and try creating a simple design that incorporates colors from your website's palette.
Saving The Custom IconGo to File>Save As and make sure you name the file favicon.ico. Under Format you must choose Windows Icon (ICO) from the pulldown menu. This format will only be available in Photoshop after you download and install the plugin.
I"ve attach that plugin u can download it & put in respective photoshop plugin folder.
downloadsource: photoshopsupport