How to place image with transparent background on Adobe Illustrator

[Miss_Nerissa]

Hello.. I'm currently using Adobe Illustrator & Photoshop CS3 on Windows 7 and I have difficulty in placing image with transparent background on Illustrator. I edited my image, removed the background using Photoshop and saved it in both .psd and .tif format. When I tried to place the image (.psd and .tif format) in Illustrator using File-- Place, the background became white. If I tried to open the .psd file in a Illustrator , then dragged the image into my artwork the background will be transparent, but the image will be embedded. I need the image to be linked to my original file. Did I miss anything? Please help.. Thanks in advance.

[jdanek · Accepted solution]

In Photoshop, double click on the Layer's Name ( should be "Background" ).  Assign a new name to the Layer ( use default "Layer O" ).  Now delete the background ( it should turn into a checkerboard, letting you know it is transparent and layered ). Save again ( a copy ) as .psd format and place that.  Should work.