PSD is a file format that is widely used for storing and editing graphic images in Adobe Photoshop. One of the main advantages of PSD files is their flexibility and customizability. They can contain multiple layers that can be edited independently. This allows for creating complex compositions and fine-tuning images with high accuracy. Another advantage of PSD files is the ability to save different versions of the same image. In addition, PSD files support many functions and tools that are available in Adobe Photoshop. These include filters, effects, and tools for retouching and correcting images.