PSD is Adobe Photoshop’s native file format, used since the first version of Photoshop in 1990. It saves a design in an editable state: every layer, mask, text box, adjustment and effect, so work can be continued later. PSB, the Large Document Format, is the same idea for images larger than 30,000 pixels.
What’s inside a PSD
Besides the layers themselves, a PSD can contain a composite image: a flattened copy of how the whole design looks. It’s saved when Photoshop’s “Maximize PSD and PSB File Compatibility” option is on, which is the default in most setups. Other programs and converters rely on this composite to show a PSD without understanding every Photoshop feature.
What PSD is good at
- Non-destructive editing, with every element still adjustable
- Professional colour, including CMYK and 16-bit
- Industry standard for exchanging design work, supported by other editors such as Affinity Photo, GIMP and Photopea to varying degrees
Where PSD falls short
- Large files, often hundreds of megabytes
- Limited support outside Adobe. Browsers, phones and most apps can’t open PSDs
- Not for sharing finished work. Recipients usually just need an image
PSD and other formats
Convert PSD to PNG for designs with transparency or sharp text, and PSD to JPG for photos, artwork and print proofs. Both give the flattened final image; layers stay in the original PSD.