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To increase the resolution of an image in Photoshop, update to the latest version of Photoshop CC, as this feature is not available in previous versions like CS6. After updating, access the image you wish to enlarge and go to Image > Image size. Increase the pixel dimensions as needed, but traditional methods may result in pixelation. A new technology in Photoshop allows for better enlargement without distortion, providing a smoother result.