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Many photographers, especially those who have experience working with Photoshop, often wonder: when they come to Lightroom, should they be working with PSD files or TIFF files? Now you may recall that if we go to our Lightroom pulldown menu, we can select our Preferences, and here we can go to External Editing. Well, by default, Lightroom suggests, or recommends, or chooses, that we use this TIFF file format. Now we can always choose PSD by simply choosing it from this pulldown menu here, yet that's not the best idea, and here's why: when you're working with PSD files, what you have to do in Photoshop is you have to save them out with Maximize Compatibility turned on, which in turn gives you a little bit larger file, and it makes it a little bit more clunky.
In other words, the TIFF file works much more efficiently and fluidly with Lightroom. It works more quickly in regards to updating metadata and also just in the overall process of the way that Lightroom processes and handles files. So if you had to choose between the two, choose TIFF, because it will speed up your overall workflow.
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