It supports all Photoshop features, including multiple layers , adjustment layers, masks, transparency, text, and vector paths .

Despite Adobe publishing a PSD specification in 2006 (last updated 2015), several obstacles remain:

The PSD format is a sophisticated container that balances backward compatibility with continuous feature growth. Its layered architecture, multiple compression schemes, and support for 32-bit floating-point channels make it far more than a “saved image.” However, its proprietary nature and reliance on opaque tagged blocks create significant barriers for third-party implementation. For archival purposes, flattening a PSD to TIFF or OpenEXR is safer; for collaborative editing, native PSD remains essential. Future evolution will likely focus on cloud-native layered formats (e.g., Adobe Cloud Document), but PSD will persist as a legacy and interchange format for decades.

The Photoshop File Format (PSD): Architecture, Layered Compression, and Interoperability Challenges