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PSD File Format

Adobe Photoshop default

A .PSD file is a layered image file used in Adobe PhotoShop. PSD, which stands for Photoshop Document, is the default format that Photoshop uses for saving data.  PSD is a proprietary file that allows the user to work with the images’ individual layers even after the file has been saved.

When an image is complete, Photoshop allows the user to flatten the layers and convert the flat image into a .JPG, .GIF, .TIFF or other non-proprietary file format so it can be shared.  Once a PSD image has been flatten by conversion, however, it cannot be converted back to PSD and the user can no longer work with the image's layers. It is important, therefore, so always save the .PSD file and not overwrite it during conversion.

Learn more about .PSD files:

Adobe has more information about understanding file formats.

Troubleshoot file conversions at ITKnowledgeExchange.

This was last updated in July 2010
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I was looking on fiverr at the various things you can outsource, and one was conversion of PSD to HTML and I didnt know what it was.
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I have recently installed Photoshop Element 12 and am learning. I just edited a series of landscape images and somehow have converted 25% of them to PSD files. I do not know how to use these or convert them back to match the rest of my photos.
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I have just purchased a gig on fiverr and the designer was referring to purchasing the psd file in addition to the gig. I wanted to know exactly what it was and whether it would be of any use to me
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I was researching PSD to mailchimp template. Are people converting PSDs into e-mail templates? And now there's a market for someone with that skill set?
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A friend sent me an email with a .PSD attached. We do not have Photoshop.
Are there any other programs such as Adobe or Powerpoint that can be used?
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you can use "IrfanView" to view a psd file
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