Edited freeze frame from Premier Elements does not insert to movie

What you see in your movie is a real time rendered preview.  When you first make your freeze frame, a rendered preview will show up in the time line.  If you take the image to photoshop, Premiere Elements won't know it needs to re-render a preview.

You will probably have to bring the new photo in to the project through Add Media and replace the old one.

On Edit:  What I quickly wrote seems to be wrong!!  I tested a procedure and it works differently than I thought.

1.  On the time line with the indicator in the middle of a clip, I used Freeze Frame from the Tools menu.  Using "insert in Movie", it put a .BMP in the middle of the clip.

2.  I located the .BMP in the project folder and "Opened" in Photoshop.  ( I don't have Photoshop Elements, so the check box for that doesn't work.)

3.  I made a dramatic and obvious adjustment and "Saved" without changing any names or doing a "Save As".  It remained a BMP and was a "destructive", unrecoverable change.

4.  To my surprise, the obvious change displayed in the Premiere Elements timeline with no action on my part.

"I have followed the steps I saw on Youtube and no luck."

Can you be more specific?

Which method did you use to create the freeze frame? (There are a couple of ways to do it.) Did you select the option to add the freeze frame to your movie?

What file type was it saved as?

Did you import it and replace the old frame with it?