You'll need to setup a canvas that is bigger than both images (to give you a border) or the same size as both images. These are always combined.
So, if you have an iamge that is 1000x1500 and another that is 1000x1500, and are putting them side by side, then you'll want 2000x1500. Conversely, you could do a 1000x3000.
Just paste the images onto the canvas as separate layers. Use guides to help you place them properly and the arrow keys to nudge them into place.
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