A PSD (Photoshop Document) file is Adobe Photoshop’s proprietary format, used as the default file type for saving and editing layered images.

It encapsulates multiple elements such as text, graphics, and adjustments within different layers, which enables non-destructive editing.

PSD files support transparency and allow us to create images with intricate, layered compositions. It is widely used in graphic design, and PSD facilitates the preservation of detailed design elements during editing processes.

While primarily associated with Adobe Photoshop, various software applications can open and manipulate PSD files.