I have worked with many mockup files in Photoshop, but I have yet to understand how PSB files are linked into a PSD.

PSB link in PSD

How do I create this link which I can link a PSB which would make editing a bit faster?

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    Are you more concerned with how to make a psb file or why people use linked smart objects (PSB file)? Are you also trying to embed a smart object instead of having it linked? – AndrewH Oct 6 at 15:23
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    It's easy to turn anything into a smart object (psb file), select the Layer -> Convert to Smart Object. – AndrewH Oct 6 at 15:24
  • @AndrewH I was first concerned with how to make a psb file and now I know it was smart objects. That was the magic button!! Thank you for the tip, helped a lot. – user430574 Oct 6 at 16:16

How to make a PSB file / Smart Object inside a PSD

Right click on the layer, select "Convert to Smart Object". This will open a new file in Photoshop. This new file is a linked psb file and saved locally on your computer. If you want to open this file again, click on the thumbnail with this icon.

Smart Object Icon

How to save any file as a PSB / Large Photoshop Document

Go to File -> Save As and change the format to "Large Document Format"

Difference between a PSD and Large Document Format (PSB)

For files larger than 2 GB that you want to save with Photoshop editing capabilities, save in Large Document Format (PSB).

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