Adding a photo within an object

[Billy5FCA]

Hey,

So i have this image from a third party but not sure how they have done it and would like to do it myself.

The photo of the boy within the circle then if i click edit contents it takes me to a different document of what would go into that circle, how would i create this myself?

[Mylenium]

It's called a smart object. I suggest you read the online help on the matter.

Mylenium