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Photoshop Tutorial: Dripping Text Effect
Here is a step-by-step tutorial on how to create drippy text in Photoshop.
Step 1: Create a new image about 800 x 600 pixels and change the background colour to white (FFFFFF). Click the Type Tool  , and type any text. Use a large, thick type font such as Impact or Arial Black.
Step 2: Click Filter > Liquify as shown below.
Click OK to the message below.
Step 3: In the Liquify filter window, type in the settings shown below. From the toolbar on the far left side, select the Forward Warp Tool  . Zoom in about 200% to your text for easy editing.
 
With the Forward Warp Tool still selected, drag the bottom edges of a few letters of the text, as shown below.
Continue until you have a nice drip making sure the bottom of the drip is rounded.
Click on the Pucker Tool  , which we will used to narrow the width of the drip as shown below.
Use the Reconstruct Tool  , if you need to clean up the drip.
Step 4: Repeat the steps to a few more letters and click OK when you are finished.
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