Working with the Paragraph Palette
Each version of Photoshop brought it closer to becoming a true typesetting application, and with the ability to preserve text layers, and work through high-end type controls, that time has finally arrived. You can work through the Paragraph options without having any Type layers. However, since paragraph styles are applied to paragraphs of type, not individual letters or words, if you select a Type layer, the changes made with the Paragraph palette will be applied to the text within the layer without the necessity of selection.

Use the Paragraph Palette
Open a document.
Select the Type tool on the toolbox.
Click the Toggle The Character And Paragraph Palettes button on the Options bar.
Select the Paragraph palette, and then select from the following options:
Justification.
Click to choose from the various Justification methods.
Indent Left Margin.
Enter a value to indent the left margin (values from -1296 to 1296).
Indent First Line.
Enter a value to indent the first line of the paragraph (-1296 to 1296).
Indent Right Margin.
Enter a value to indent the right margin (values from -1296 to 1296).
Space Before Paragraph.
Enter a value to increase or decrease the space before each new paragraph (-1296 to 1296).
Space After Paragraph.
Enter a value to increase or decrease the space after each paragraph (values from -1296 to 1296).
Hyphenate.
Select the check box to hyphenate long words at the end of text lines.
[View full size image]
[View full size image]