Photoshop is professional graphics editing software published by Adobe Systems. Graphic designers, photographers and advertising professionals rely on Photoshop to enhance, correct and modify images. The raw file format (uncompressed) format of Photoshop files is PSD. This type of uncompressed file format is not compatible with Microsoft Word. The image or graphic file must be saved as a GIF or JPEG format first and then inserted into the Word document.
Open the image file in Adobe Photoshop.
Click "File" from the top menu and choose "Save As."
Select "JPEG" from the file format drop-down menu.
Select a location on your computer to save your file to and click "Save."
Open the desired document in Microsoft Word.
Place the cursor in the document where you wish the image to be placed.
Click "Insert" from the top menu and locate the image file that you wish to insert.
Select the image with your mouse and click the "Insert" button. The image will be placed in your document.
Double-click the image to open the formatting tools.
Click "Position" and select the desired word wrapping option if you have text on the page and wish for the text to wrap around the image.
Adjust the size of the image. Click and hold the mouse while dragging one of the edges of the photo. Move the cursor toward the centre of the image to make it smaller. Move the cursor away from the centre of the image to make it larger.
Click "File" from the top menu and select "Save" to save your document.