Photoshop 2026: Illustrator (.ai) placed as Smart Object renders blurry/low‑resolution at 100% zoom

Smart Object from Illustrator appears low resolution at 100% (regression)

📝 Description

Placing an Illustrator (.ai) file into Photoshop as a Smart Object results in a rasterized, low-resolution appearance, even when viewed at 100% zoom.

This behavior is new and did not occur in previous versions. It is impacting production workflow for print design, where accurate, high-resolution vector rendering is required.

🪜 Steps to Reproduce

1. Open Photoshop
2. Create a new document (300 ppi)
3. Go to File → Place Embedded
4. Select an Adobe Illustrator (.ai) file with vector artwork (fonts outlined)
5. Place the file and confirm placement
6. View the Smart Object at 100% zoom

Also, tried just opening Illustrator vector art and linked graphics which I have done previously over many years without issue and now everything is blurry and low resolution - even vector art. Never had to  import or place files before.

❌ Expected Result

Vector artwork placed as a Smart Object should appear sharp and resolution-independent at 100% zoom.

❗ Actual Result

The placed Smart Object appears blurry/pixelated immediately upon placement and remains blurry at 100% zoom.

• Issue occurs even with:
  • High-resolution (300 ppi) Photoshop documents
  • Illustrator files with outlined fonts
  • No raster images in the file
• Placing the file larger and scaling down does not resolve the issue
• Exporting from Illustrator as PNG results in correct sharpness
• Suggests a rasterization or import issue with .ai files

🖥 System Info

• Photoshop version: 2026
• Illustrator version: 2026