How to get an image painted on wood effect in Photoshop

The final image will look like this:

Step 1:
Get the image of a wooden texture in Photoshop.

Step 2:
Get the image you want to be painted on wood texture. In this case I used an illustration on a beer mug.

Step 3:

Using the background wooden texture, create a new photoshop file. Change the image to Grayscale by clicking Image> Mode> Grayscale.

Then save this file in Photoshop (.psd) format.

Step 4:
Go back to the original file. Select the layer with beer mug image.
Click Filter> Distort> Displace.

Step 5:
Then a 'Displace' menu will appear. Choose the appropriate horizontal and vertical scale. In this case I used 15. You can experiment with these values and choose the values that are best for your image.

Step 6:
A menu will pop up which will ask you to choose the Displacement Map. Now, go to the place where you stored the grayscale psd file of the background wood texture. Choose that file and click open.

You will get something like this.

Step 7: Duplicate the beer mug layer. Select the duplicate layer which is on top. Change its layer style to Overlay.

Step 8:
Select the beer mug layer which is bellow the duplicated layer and change its opacity to 10%. And you will get your final image as if painted on wood.

Final Result: