A PSD file stand for ( Photoshop Document ) is a layered image file used in Adobe PhotoShop. PSD is the default format that Photoshop uses for saving data. PSD is a file which allows the user to work with the images with individual layers even after the file has been saved. When an image is complete the Photoshop allows the user to change the layers and file format and convert the flat image into a .JPG, .GIF, .TIFF or other non-proprietary file format so it can be shared. In designing time when Once a PSD image has been created then it cannot be converted back to PSD file format and the user can no longer work with the image's layers. It is important to remember if we wants to used image in future time then we can always save the .PSD file.