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Step-by-step build — 6 steps. Also available as a print sheet.
Build a rectangular 2x4 frame sized to your desired headboard width and height, using the two rails and four vertical studs, fastened with the 2-3/4" screws.
Square the frame before you drive the last few screws — an out-of-square frame telegraphs straight through the plywood, padding, and fabric to the finished piece.
Attach the two mounting cleats to the back of the frame now, while it's easy to get a drill square to the work. These are what let you secure the finished headboard to a wall or bed frame later.
Cut the plywood panel to the frame's outer size and fasten it to the front of the frame with glue and screws or staples.
Layer batting (or old comforters, doubled up) over the face panel and staple it to the back of the frame, pulling it snug but not so tight it compresses flat — you want a soft dome, not a hard board.
Center the fabric over the padded panel. Staple the bottom edge first, then pull taut and staple the top, then the sides, working from the center of each edge outward.
Fold each corner neatly like wrapping a gift box rather than bunching it — a bunched corner is the one detail that gives away a home upholstery job at a glance.
Stand the finished headboard behind the bed and secure it to the wall with a French cleat, or fasten it to the bed frame itself through the mounting cleats, so it can't tip forward.