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I am using Illustrator CS6 and when I want to make a rectangle's corners round by using the direct selection tool and doing it manually, there is no option for that. So how to do so?

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    I believe the Live corners are a CC feature. – Joonas Dec 2 '16 at 7:04

Live Corners and Live Shapes were new features added in CC so aren't available in CS6.

What you can do is use a "Round Corners" effect:

Effects → Stylize → Round Corners...

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Since this functionality was not made available until later versions of illustrator, your only option is to do it through a plugin:

  • VectorScribe, from AstuteGraphics has not only live (rounded) corners, but TONS of functionality to edit paths. It is a must for all serious AI users.

  • XtreamPath is also a multi-function plugin that has rounded corners by dragging.

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    The reality is even with CC+, VectorScribe still handles this better than the built in Adobe functions. – Scott Dec 2 '16 at 11:05

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I am using Illustrator CS5. I always do it like this. Then if I need to adjust further I use the Direct Selection tool and adjust it.

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