Struggling understanding how to import image with out it degrading(blocky)

[Mark245245051gxu]

Hello

I am trying to learn  and hope someone can help explain why  I can create and size an image in PS 2023 and  no matter how I try to bring it over, the image looks blocky. I am still new at this so thank you for your kindness. You can let me know  what info you need from me so you can help me . I apologize in advance for not knowing what information  provides a quick solution.

THe main image is 2560x2352  72 dpi

I desire an image to be reflected in an explorer's binoculars but it needs to be sharper , less "natural" then how it owuld look if really reflected.  So I created an image  to my liking that is 3540x3453  72 dpi   But the image is looking blocky when I put it in the main document.

The first time I tried created a smart object and duplicating it over.  

Initally I tried making it a smart object and  duplicating  it over to the main file and resizing it.  Immediately I noticed the quality was not the same,.

I have tried many ways but each time when the image gets down to correct size, it looks fine in the file  I created it in even at 300% zoom but when brought over  it is very blocky looking.

I tried 

I have tried dupllicating the layer over, tried smart object. Tried copy and paste,  . Tried saving it as Jpg and place emedded
I have tried  unchecking resample when resizing.  

According to the  rulers the image I am trying to put in the binoculars is  about 2.5" square 

I am just not sure  why the resized image looks usable in the file where it is created but  importing it  does not look the same.

I look forward to learning what I am am not understanding. Thanks

[Mark245245051gxu]

Hi

I am trying to get my project completed and marketed so am slow to respond. The current solution  that worked well enough for me was to  move explorer image to the  larger lion image, enlarge the explorer to fit the max size of the lion format and then shrink the lion down fit in the binoculars.  So in otherwords, similar to what someone stated which was maybe I was already too small  and seeing pixel blocks (which maybe be but seemed wider and I was still not seeing it on the image not shrunk down even when zooming in  

For what this is, I just have to get out somethign the works and does not look bad at 100% or when printed so think I have that and trying to finish things up. 
I do want to get back with you guys to show screen shot samples as I still want to know more about how to handle this in the future so I am not struggling with it. 
So the real answer was not that my lion was already TOO LARGE but that ratio of sizes were not compatible for the size reduction and I had to go LARGE to get it SMALLER. Does that make sense?