3ds max terrain

I created a 3d island using max, and photoshop.

first i created a displacement map using photoshop and saved it as a .JPEG (see image 01)

and in 3ds max added displacement modifier to a plane, which when combined with the image created some hieght in certain parts of the map (see image 02).

then i created a texture using photoshop (see image 03) and applied the texture to the model, then i added some enviromental effects such as sun, sky and some water and lighting effects.

this is the finished result (image 04).