How do you change psd to indesign format?

You can't change a PSD file into an INDD file because the INDD format isn't an image format - they're text files. To incorporate the image into the InDesign project, you have to perform a Place (File - Place) to put the image into the ID project. The image file then becomes a part of the overall ID file when it's saved, but it isn't changed to the ID format.

InDesign links to the image file for both project presentation and printing purposes.

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