The Photoshop June 2025 update (version 26.8), released on June 17, 2025, brings powerful new features to elevate your creative projects. From Dynamic Text for auto-adjusting layouts to enhanced cloud processing for precise selections and support for modern AVIF and JPEG XL file formats, this update is packed with tools for designers, photographers, and digital artists.
In this comprehensive guide, we’ll explore these features and share tips to optimise your workflow. Whether you’re a beginner or a seasoned pro, this article will help you master Photoshop 26.8.
Why the Photoshop June 2025 Update Matters
Adobe Photoshop’s version 26.8 introduces tools that streamline workflows and expand creative possibilities. According to Adobe, this update focuses on smarter text handling, AI-driven precision, and modern file format support, making it ideal for creating templates, editing complex images, and optimizing web graphics.
1. Dynamic Text: Create Auto-Adjusting Text Layouts
Dynamic Text is a game-changer for designers working on templates, posters, or social media graphics. This feature allows text to automatically resize and reflow within a bounding box, adapting to layout changes in real time. It’s perfect for maintaining consistent designs across multiple formats.
How Dynamic Text Works
- Select the Type Tool (T) and create a text box.
- Enable Dynamic Text in the Properties panel to allow auto-resizing and reflowing.
- Adjust the bounding box, and watch the text adapt seamlessly, preserving spacing and layout.
There are a few ways you can enable dynamic text in Photoshop 26.8:
1. Enable Dynamic Text via the Tool Options Bar:

2. Use the Text Properties Panel:

You will also notice the symbol on the layer panel changed into the following – this means this text layer has been converted into a Dynamic Text layer:

Why It’s Useful
Dynamic Text saves time when designing for multiple platforms, ensuring text fits perfectly without manual tweaks. It’s ideal for creating reusable templates.
2. Enhanced Cloud Processing for Select Subject and Remove Background
Photoshop 26.8 introduces cloud processing for the Select Subject and Remove Background tools, delivering precise detection around complex edges like hair or fur. Powered by Adobe Firefly’s AI, this feature enhances selection accuracy for photo editing.
How to Enable Cloud Processing
- Go to Preferences > Image Processing.
- Select Cloud from the dropdown for Select Subject and Remove Background.
- Use the tools as usual, and Photoshop processes selections via the cloud for better results.

Tips for Success
- Toggle AI Off for Small Edits: Disable generative AI in the Remove Tool’s options bar to save generative credits for minor tasks.
- Check Internet Connection: Cloud processing requires a stable connection for optimal performance.
This feature is a must for photographers and editors, offering cleaner cutouts for composites and product images.
3. AVIF and JPEG XL File Format Support
Photoshop 26.8 now supports AVIF and JPEG XL (JXL) formats, which offer HDR compatibility, deeper colors, and efficient compression. These formats are ideal for web designers and photographers aiming to optimize image quality and file size.
Benefits of AVIF and JPEG XL
- AVIF: High compression with minimal quality loss, perfect for web images. It’s supported by major browsers and Google Search.
- JPEG XL: Supports HDR and lossless compression, great for archival and high-quality prints.
Quick Tutorial: Export a Web-Optimised Image in AVIF
- Open an image in Photoshop 26.8.
- Go to File > Save As.
- Choose AVIF as the format and adjust quality settings (e.g., 80% for a balance of size and quality).
- Save the file and test it on your website.
- Compare file size with a JPEG version to see the savings.

Why It Matters
AVIF and JPEG XL reduce website load times, improving SEO and user experience. They’re essential for PSD Vault readers creating web-ready graphics.
4. Additional Enhancements in Photoshop 26.8
Beyond the headline features, version 26.8 includes bug fixes and performance improvements for a smoother experience. Adobe also refined the user interface for better access to tools like Adjustment Presets, introduced in earlier 2025 updates.
Notable Improvements
- Stability: Fewer crashes during intensive tasks like rendering large files.
- Workflow Efficiency: Faster access to tools via the Contextual Task Bar.
Get Started with Photoshop 26.8
The Photoshop June 2025 update (version 26.8) empowers creators with Dynamic Text, cloud processing, and AVIF/JPEG XL support. Whether you’re designing social media posts, editing portraits, or optimizing web images, these features enhance efficiency and quality. Try the feature above, experiment with the new tools, and share your results in the comments!
Have you used Photoshop 26.8 yet? Let us know your favourite feature or request a tutorial topic below. For more tips, subscribe to PSD Vault’s newsletter and follow us on social media.