Adding PSD in InDesign triggers CMYK dull colors

[Don25633723o0t6]

I feel like I should know this, but I'm now realizing that I don't have much knowledge of managing color profiles. I have an InDesign project and on specific pages, when I add a photoshop file (.PSD or PNG, etc) it instantly causes the colors within the InDesign file to be dulled (obviously cmyk preview)

I'm attaching a screenshot of the PSD inside the document (dulled blue colors)
And when I delete the PSD file (bright blue colors)

So its obiously a color settings thing, but I have no idea where to start. 

Also attaching my colors settings (from photoshop and Indesign)

[EuanWilliamson]

Hi Don,

I've a feeling that the folks over in the InDesign forum may have a better handle on this.
https://community.adobe.com/t5/indesign

Perhaps post this query over there?

I've left it here instead of moving itin case some PS guru can assist?

[davescm]

Does your PSD image have transparency? If so, check your Transparency Blend Space in the edit menu.

If transparency is set to CMYK and your text is an RGB colour, on adding an image or anything else with transparency , the whole page preview will change to CMYK

Dave

[c.pfaffenbichler]

If you haven’t cracked it yet please provide the package for testing.