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PSD stands for Photoshop Document, and it is the default file format used by Adobe Photoshop, a popular image editing software. PSD files support multiple layers, allowing for rich image composition and editing. They can store an image's individual layers, text, masks, transparency, clipping paths, and other settings, which are all editable within Photoshop. This format is widely used by graphic designers, photographers, and artists for creating and editing complex images and digital art.

The RAW image file format is a generic term for a variety of image formats used by different digital camera manufacturers. RAW files store unprocessed data from the camera's sensor, providing photographers with the ability to manipulate settings like exposure, white balance, and sharpness during post-processing, which can result in higher image quality. Unlike JPEG and other compressed formats, RAW files retain a much broader range of color and luminance values, offering more flexibility for editing but also resulting in larger file sizes.