To get started, open the image you want to repair. Next, click on Filter>Sharpen>Shake Reduction. This opens the Shake Reduction dialog box.
As it opens, Photoshop automatically analyzes the image, and the nature of the blur, selects an area that it thinks is best for shake reduction, and applies the appropriate corrections to the image. Once done, you can see the corrected image in the Shake Reduction dialog box.
When you open the Advanced section, you see a Blur Estimation Region there, which is also represented by a box drawn in the image preview. You can use this position, you can move it to another location or you can draw additional blur estimations – ones that you feel would be better for the image.
When you click on it, you will see a message at the top-right of the image preview which will read: ‘rendering a coarse preview’. When it completes that preview, you’ll notice a caution icon at the top-right of the preview. If you click on it, the message reads: ‘Preview is of reduced quality. 100% result is being generated in the background.’
You can add as many Blur Estimation Boxes as you need to the image. As you do so, this will reduce camera shake and add some sharpening. It will also introduce some artifacts, which you will see as bits of clumping in the image.
You can manage this by changing the bounds used to trace the blur. You also can increase the Smoothness and Artifact Suppression by moving the sliders to the right.
When you’re satisfied with your changes, click on OK. In the finished image Photoshop should have considerably improved the sharpness.