PSD stands for "Photoshop Document" and is the native file format of Adobe Photoshop, one of the best-known software applications in the field of graphic design.
A PSD document stores all the layers, effects and settings of a graphic, making it a powerful tool for graphic designers. By saving all the information of a graphic in a PSD file, designers can later make changes to a graphic without damaging the original elements.
The PSD file format also offers a wide range of functions and options that designers can use to create complex and appealing designs. It enables the creation of layers and layer masks, the editing of colours and text as well as the integration of vector elements and shapes.
In Photoshop, graphic designers can open, edit and export PSD files. By using PSD files, designers can organise their work in layers and edit the different elements of the design individually, which increases the flexibility and efficiency of their work.