How to create EditText with rounded corners?

How to create an EditText that has rounded corners instead of the default rectangular-shaped corners?

There is an easier way than the one written by CommonsWare. Just create a drawable resource that specifies the way the EditText will be drawn:

<?xml version="1.0" encoding="utf-8"?>
<!--  res/drawable/rounded_edittext.xml -->
<shape xmlns:android="http://schemas.android.com/apk/res/android"
    android:shape="rectangle" 
    android:padding="10dp">

    <solid android:color="#FFFFFF" />
    <corners
        android:bottomRightRadius="15dp"
        android:bottomLeftRadius="15dp"
        android:topLeftRadius="15dp"
        android:topRightRadius="15dp" />
</shape>

Then, just reference this drawable in your layout:

<?xml version="1.0" encoding="utf-8"?>
<LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
    android:orientation="vertical"
    android:layout_width="fill_parent"
    android:layout_height="fill_parent">

    <EditText  
        android:layout_width="fill_parent" 
        android:layout_height="wrap_content" 
        android:padding="5dip"
        android:background="@drawable/rounded_edittext" />
</LinearLayout>

You will get something like:

Edit

Based on Mark's comment, I want to add the way you can create different states for your EditText:

<?xml version="1.0" encoding="utf-8"?>
<!-- res/drawable/rounded_edittext_states.xml -->
<selector xmlns:android="http://schemas.android.com/apk/res/android">
    <item 
        android:state_pressed="true" 
        android:state_enabled="true"
        android:drawable="@drawable/rounded_focused" />
    <item 
        android:state_focused="true" 
        android:state_enabled="true"
        android:drawable="@drawable/rounded_focused" />
    <item 
        android:state_enabled="true"
        android:drawable="@drawable/rounded_edittext" />
</selector>

These are the states:

<?xml version="1.0" encoding="utf-8"?>
<!-- res/drawable/rounded_edittext_focused.xml -->
<shape xmlns:android="http://schemas.android.com/apk/res/android"
    android:shape="rectangle" android:padding="10dp">

    <solid android:color="#FFFFFF"/>
    <stroke android:width="2dp" android:color="#FF0000" />
    <corners
        android:bottomRightRadius="15dp"
        android:bottomLeftRadius="15dp"
        android:topLeftRadius="15dp"
        android:topRightRadius="15dp" />
</shape>

And... now, the EditText should look like:

<?xml version="1.0" encoding="utf-8"?>
<LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
    android:orientation="vertical"
    android:layout_width="fill_parent"
    android:layout_height="fill_parent">

    <EditText  
        android:layout_width="fill_parent" 
        android:layout_height="wrap_content" 
        android:text="@string/hello"
        android:background="@drawable/rounded_edittext_states"
        android:padding="5dip" />
</LinearLayout>