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So, whats place embedded and whats place linked? Let me explain to you. When you use place embedded, you are essentially making a copy of the original file and save it inside your working document. So whatever changes you make to this file stays within this document. Whereas if its place-linked. It is actually, importing your original file into your working document. So whatever changes you make to the drawing or to the image or photoshop file, whichever it is, it will be updated to the original file. Let me show you what I mean. Lets say I have a logo here. A blue logo with yellow font. I place embed. Temp, embed. Its a photoshop file. So I have it here, I put it here, to the embedded side and I place-linked the same thing onto the right side, Place-linked. So in the Layers Panel, when it is embedded. Photoshop will convert it into a smart object. You will see and icon at the side which looks like this and if you double click on this icon, and you make any changes, lets say we