JPG or PNG?
JPG is a lossy format. Use it for previews, moodboards, email attachments or web images where a smaller file matters more than perfect edges. For UI, logos, screenshots or anything that needs a transparent background, use PSD to PNG: JPG cannot store transparency, so transparent areas are filled with white.
When JPG is the better export
- The document is a photograph or a textured illustration.
- You need to attach a preview that must stay under an email or form size limit.
- You are batching many comps and disk size matters (paid batch export).
When you need lossless pixels or transparency, go back to PNG.
Same parsing limits as PNG
Flattening still uses the stored composite when it exists. Adjustment layers, some smart objects, and missing Maximize Compatibility have the same caveats described on PSD to PNG. 16-bit sources are reduced to 8-bit JPEG. Color shifts are more visible in CMYK-to-RGB conversions; do not use this as a print-proof.
Layer-by-layer exports are PNG-only in the first version, via Extract layers from a PSD.