Yes, it is possible to create a smart object layer in Elements. (I hope I have understood your question correctly.) There are two options. Either drag a photo from the Photo Bin to another file:
Or you can open a file using the File>Place menu:
Elements does not have all the options that are available in Photoshop CC. However, there is an inexpensive add-on program called Elements+ that many users recommend. It provides additional smart object features for Elements.