• PSD files are graphic files created by Adobe PhotoShop and other tools.
• Only the files saved in .psd extension can be edited using adobe photoshop.
• Select the layer, which you want to edit or make changes and perform the required editing.
• For Example, let us see an example with a .psd file, were four different layers are present.
• To edit an image or text, first select that particular layer from the "Layers window".
• Here we used "Move Tool" and moved the image and text to different locations, by simply clicking and dragging on the selection.
• We can move or edit each and every object individually, by selecting the respective layers from the .psd file

Video Tutorial: