Type in Photoshop lives on type layers and stays editable. With the Horizontal Type tool, one click starts point text, a single line with no box around it, which suits a headline you will set large across a photograph and then nudge by eye until it sits right. Drag instead and you get paragraph text. The words wrap inside the box you drew, which suits a caption. Since the August 2026 release, Dynamic Text can also flow type along any shape or path. A headline on a photograph sits well in Photoshop. A long block of reading text belongs in InDesign or Figma, where paragraph styles and long pages are easier to keep in order.
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