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You're largely right, Trevor.
Before right clicking the image, it has to be selected. Then choose Edit (which will launch the application associated with the file type, which might be something other than Photoshop if it's a jpg for instance) or choose Edit with > Photoshop.
The same thing can be done from the Links panel.
After saving in Photoshop, the file will update automatically when you return to InDesign.
All this requires that you have placed (File > Place) the image in InDesign.
Photosh
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It's a while since I have used InDesign, but our @jane-e teaches it. It soundds like you are doing it back to front though. Start the image in Photoshop, and save it as a PSD and import it into InDesign. You can then right click the image and chose to Edit in Photoshop. I 'hope' that I have that right. Like I say, it's years since I last used it.
Jane will be along later with some 'accurate' information.
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You're largely right, Trevor.
Before right clicking the image, it has to be selected. Then choose Edit (which will launch the application associated with the file type, which might be something other than Photoshop if it's a jpg for instance) or choose Edit with > Photoshop.
The same thing can be done from the Links panel.
After saving in Photoshop, the file will update automatically when you return to InDesign.
All this requires that you have placed (File > Place) the image in InDesign.
Photoshop cannot open InDesign files.
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Thanks for the feedback you both. It's unfortunate Photoshop has no editing capabilities with InDesign.
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@Trevor.Dennis got this right and @Per Berntsen filled in the details. (Thanks for the tag, Trevor.)
InDesign works extremely well with Photoshop, as you can place native PSDs. As was said, if you start the edit of the photo from inside InDesign, the Link is updated automatically. In addition, InDesign recognizes Alpha Channels and saved Paths as a clipping path (masking in PS) and for text wrap. There is also a menu option to hide/show layers and layer comps.
I may need to duck, but to InDesign users, Photoshop and Illustrator are plug-ins. 😊
~ Jane
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You may find it unfortunate, but it has to be this way.
Photoshop is an editor for pixel based images, and InDesign is a vector based layout application. They are very different, and cannot be expected to open each other's files.
Personally, I have no problems with using Edit in Photoshop when I need to edit an image.
You can even create a keyboard shortcut for Edit original.
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What if the option to edit with photoshop is missing? I use this all the time, got a new laptop, dowloaded indesign and each time I have to edit with "other" and I choose photoshop, but it still isn't showing up as the default option. It's been so much longer to edit with photoshop.