diff --git a/src/add-ons/translators/psd/ConfigView.cpp b/src/add-ons/translators/psd/ConfigView.cpp
index 9380080766..f95b41da35 100644
--- a/src/add-ons/translators/psd/ConfigView.cpp
+++ b/src/add-ons/translators/psd/ConfigView.cpp
@@ -22,18 +22,31 @@ ConfigView::ConfigView(TranslatorSettings *settings)
 {
 	fSettings = settings;
 
-	BPopUpMenu* popupMenu = new BPopUpMenu("popup_compression");
+	BPopUpMenu* compressionPopupMenu = new BPopUpMenu("popup_compression");
 
 	uint32 currentCompression = 
 		fSettings->SetGetInt32(PSD_SETTING_COMPRESSION);
 
-	_AddItemToMenu(popupMenu, "Uncompressed",
-		PSD_COMPRESSED_RAW, currentCompression);
-	_AddItemToMenu(popupMenu, "RLE",
-		PSD_COMPRESSED_RLE, currentCompression);
+	_AddItemToMenu(compressionPopupMenu, "Uncompressed",
+		MSG_COMPRESSION_CHANGED, PSD_COMPRESSED_RAW, currentCompression);
+	_AddItemToMenu(compressionPopupMenu, "RLE",
+		MSG_COMPRESSION_CHANGED, PSD_COMPRESSED_RLE, currentCompression);
 
-	fCompressionField = new BMenuField("compression", 
-		"Compression: ", popupMenu);
+	fCompressionField = new BMenuField("compression",
+		"Compression: ", compressionPopupMenu);
+
+	BPopUpMenu* versionPopupMenu = new BPopUpMenu("popup_version");
+
+	uint32 currentVersion = 
+		fSettings->SetGetInt32(PSD_SETTING_VERSION);
+
+	_AddItemToMenu(versionPopupMenu, "Photoshop Document (PSD File)",
+		MSG_VERSION_CHANGED, PSD_FILE, currentVersion);
+	_AddItemToMenu(versionPopupMenu, "Photoshop Big Document (PSB File)",
+		MSG_VERSION_CHANGED, PSB_FILE, currentVersion);
+
+	fVersionField = new BMenuField("version",
+		"Format: ", versionPopupMenu);
 
 	BAlignment leftAlignment(B_ALIGN_LEFT, B_ALIGN_VERTICAL_UNSET);
 
@@ -66,6 +79,8 @@ ConfigView::ConfigView(TranslatorSettings *settings)
 	stringView->SetExplicitAlignment(leftAlignment);
 	AddChild(stringView);
 	
+	AddChild(fVersionField);
+
 	AddChild(fCompressionField);
 
 	AddChild(BSpaceLayoutItem::CreateGlue());
@@ -86,6 +101,7 @@ void
 ConfigView::AllAttached()
 {
 	fCompressionField->Menu()->SetTargetForItems(this);
+	fVersionField->Menu()->SetTargetForItems(this);
 }
 
 
@@ -101,6 +117,14 @@ ConfigView::MessageReceived(BMessage* message)
 			}
 			break;
 		}
+		case MSG_VERSION_CHANGED: {
+			int32 value;
+			if (message->FindInt32("value", &value) >= B_OK) {
+				fSettings->SetGetInt32(PSD_SETTING_VERSION, &value);
+				fSettings->SaveSettings();
+			}
+			break;
+		}		
 		default:
 			BView::MessageReceived(message);
 	}
@@ -109,9 +133,9 @@ ConfigView::MessageReceived(BMessage* message)
 
 void
 ConfigView::_AddItemToMenu(BMenu* menu, const char* label,
-	uint32 value, uint32 current_value)
+	uint32 mess, uint32 value, uint32 current_value)
 {
-	BMessage* message = new BMessage(MSG_COMPRESSION_CHANGED);
+	BMessage* message = new BMessage(mess);
 	message->AddInt32("value", value);
 	BMenuItem* item = new BMenuItem(label, message);
 	item->SetMarked(value == current_value);
diff --git a/src/add-ons/translators/psd/ConfigView.h b/src/add-ons/translators/psd/ConfigView.h
index c390288bff..2ef8f50c4f 100644
--- a/src/add-ons/translators/psd/ConfigView.h
+++ b/src/add-ons/translators/psd/ConfigView.h
@@ -16,6 +16,7 @@
 #include <MenuField.h>
 	
 #define MSG_COMPRESSION_CHANGED 'cchg'
+#define MSG_VERSION_CHANGED 	'vchg'
 	
 class ConfigView : public BGroupView {
 	public:
@@ -27,10 +28,11 @@ class ConfigView : public BGroupView {
 
 	private:
 		void _AddItemToMenu(BMenu* menu, const char* label,
-			uint32 value, uint32 current_value);
+			uint32 mess, uint32 value, uint32 current_value);
 
 		BTextView*			fCopyrightView;
 		BMenuField*			fCompressionField;
+		BMenuField*			fVersionField;
 
 		TranslatorSettings *fSettings;
 };
diff --git a/src/add-ons/translators/psd/PSDLoader.cpp b/src/add-ons/translators/psd/PSDLoader.cpp
index a7e606c6a7..2afc4ac1af 100644
--- a/src/add-ons/translators/psd/PSDLoader.cpp
+++ b/src/add-ons/translators/psd/PSDLoader.cpp
@@ -46,7 +46,12 @@ PSDLoader::PSDLoader(BPositionIO *src)
 	_SkipStreamBlock(fStream, fImageResourceSectionSize);
 
 	// Skip [layer and mask] block
-	_SkipStreamBlock(fStream, _GetInt32FromStream(fStream));
+	if (fVersion == PSD_FILE)
+		_SkipStreamBlock(fStream, _GetInt32FromStream(fStream));
+	else if (fVersion == PSB_FILE)
+		_SkipStreamBlock(fStream, _GetInt64FromStream(fStream));
+	else
+		return;
 
 	fCompression = _GetInt16FromStream(fStream);
 
@@ -74,8 +79,10 @@ PSDLoader::IsSupported(void)
 	if (!fLoaded)
 		return false;
 
-	if (fVersion != 1)
+	if (fVersion != PSD_FILE
+		&& fVersion != PSB_FILE) {
 		return false;
+	}
 
 	if (fChannels < 0 || fChannels > PSD_MAX_CHANNELS)
 		return false;
@@ -87,8 +94,9 @@ PSDLoader::IsSupported(void)
 		return false;
 
 	if (fCompression != PSD_COMPRESSED_RAW
-		&& fCompression != PSD_COMPRESSED_RLE)
+		&& fCompression != PSD_COMPRESSED_RLE) {
 		return false;
+	}
 
 	return true;
 }
@@ -207,7 +215,11 @@ PSDLoader::Decode(BPositionIO *target)
 		}
 		case PSD_COMPRESSED_RLE:
 		{
-			fStreamPos += fHeight * fChannels * 2;
+			if (fVersion == PSD_FILE)
+				fStreamPos += fHeight * fChannels * 2;
+			else if (fVersion == PSB_FILE)
+				fStreamPos += fHeight * fChannels * 4;
+
 			for (int channelIdx = 0; channelIdx < fChannels; channelIdx++) {
 				uint8 *ptr = imageData[channelIdx];
 				// Read the RLE data.
@@ -448,6 +460,15 @@ PSDLoader::Decode(BPositionIO *target)
 }
 
 
+int64
+PSDLoader::_GetInt64FromStream(BPositionIO *in)
+{
+	int64 ret;
+	in->Read(&ret, sizeof(int64));
+	return B_BENDIAN_TO_HOST_INT64(ret);
+}
+
+
 int32
 PSDLoader::_GetInt32FromStream(BPositionIO *in)
 {
diff --git a/src/add-ons/translators/psd/PSDLoader.h b/src/add-ons/translators/psd/PSDLoader.h
index 4e6a85263b..dca0ed49f6 100644
--- a/src/add-ons/translators/psd/PSDLoader.h
+++ b/src/add-ons/translators/psd/PSDLoader.h
@@ -25,6 +25,12 @@
 #define PSD_MAX_CHANNELS 16
 
 
+enum psd_version {
+	PSD_FILE = 1,
+	PSB_FILE = 2
+};
+
+
 enum psd_compressed_type {
 	PSD_COMPRESSED_RAW	= 0,
 	PSD_COMPRESSED_RLE = 1
@@ -72,6 +78,7 @@ public:
 	BString			ColorFormatName(void);
 
 private:
+	int64			_GetInt64FromStream(BPositionIO *in);
 	int32			_GetInt32FromStream(BPositionIO *in);
 	int16			_GetInt16FromStream(BPositionIO *in);
 	uint8			_GetUInt8FromStream(BPositionIO *in);
diff --git a/src/add-ons/translators/psd/PSDTranslator.cpp b/src/add-ons/translators/psd/PSDTranslator.cpp
index 52beccbd91..061bfb6c26 100644
--- a/src/add-ons/translators/psd/PSDTranslator.cpp
+++ b/src/add-ons/translators/psd/PSDTranslator.cpp
@@ -61,7 +61,8 @@ static const translation_format sOutputFormats[] = {
 static const TranSetting sDefaultSettings[] = {
 	{B_TRANSLATOR_EXT_HEADER_ONLY, TRAN_SETTING_BOOL, false},
 	{B_TRANSLATOR_EXT_DATA_ONLY, TRAN_SETTING_BOOL, false},
-	{PSD_SETTING_COMPRESSION, TRAN_SETTING_INT32, PSD_COMPRESSED_RLE}
+	{PSD_SETTING_COMPRESSION, TRAN_SETTING_INT32, PSD_COMPRESSED_RLE},
+	{PSD_SETTING_VERSION, TRAN_SETTING_INT32, PSD_FILE}
 };
 
 const uint32 kNumInputFormats = sizeof(sInputFormats)
@@ -141,11 +142,17 @@ PSDTranslator::DerivedTranslate(BPositionIO *source,
 		}
 		case 1:
 		{
-			if (outType == PSD_IMAGE_FORMAT) {
+			if (outType == PSD_IMAGE_FORMAT) {				
 				PSDWriter psdFile(source);
+
 				uint32 compression =
 					fSettings->SetGetInt32(PSD_SETTING_COMPRESSION);
+				uint32 version =
+					fSettings->SetGetInt32(PSD_SETTING_VERSION);
+
 				psdFile.SetCompression(compression);
+				psdFile.SetVersion(version);
+
 				if (psdFile.IsReady())
 					return psdFile.Encode(target);
 			}
diff --git a/src/add-ons/translators/psd/PSDTranslator.h b/src/add-ons/translators/psd/PSDTranslator.h
index 6b7ce32eaa..38142b11d8 100644
--- a/src/add-ons/translators/psd/PSDTranslator.h
+++ b/src/add-ons/translators/psd/PSDTranslator.h
@@ -22,8 +22,9 @@
 #define DOCUMENT_INDEX "/documentIndex"
 
 #define PSD_SETTING_COMPRESSION "psd /compression"
+#define PSD_SETTING_VERSION 	"psd /psdversion"
 
-#define PSD_TRANSLATOR_VERSION B_TRANSLATION_MAKE_VERSION(1, 2, 1)
+#define PSD_TRANSLATOR_VERSION B_TRANSLATION_MAKE_VERSION(1, 3, 0)
 #define PSD_IMAGE_FORMAT	'PSD '
 
 #define PSD_IN_QUALITY		0.7
diff --git a/src/add-ons/translators/psd/PSDTranslator.rdef b/src/add-ons/translators/psd/PSDTranslator.rdef
index 1cdd5a4f1e..e5bfee4967 100644
--- a/src/add-ons/translators/psd/PSDTranslator.rdef
+++ b/src/add-ons/translators/psd/PSDTranslator.rdef
@@ -6,10 +6,10 @@ resource app_signature "application/x-vnd.Haiku-PSDTranslator";
 
 resource app_version {
 	major  = 1,
-	middle = 2,
-	minor  = 1,
+	middle = 3,
+	minor  = 0,
 	variety = 0,
 	internal = 0,
-	short_info = "1.2.1",
+	short_info = "1.3.0",
 	long_info = "Haiku PSDTranslator Add-Ons."
 };
diff --git a/src/add-ons/translators/psd/PSDWriter.cpp b/src/add-ons/translators/psd/PSDWriter.cpp
index b39d5fb500..df0c6b99c8 100644
--- a/src/add-ons/translators/psd/PSDWriter.cpp
+++ b/src/add-ons/translators/psd/PSDWriter.cpp
@@ -33,11 +33,14 @@ PSDWriter::PSDWriter(BPositionIO *stream)
 	bounds.bottom = B_BENDIAN_TO_HOST_FLOAT(header.bounds.bottom);
 	fInRowBytes = B_BENDIAN_TO_HOST_INT32(header.rowBytes);
 	fColorSpace = (color_space)B_BENDIAN_TO_HOST_INT32(header.colors);
+	if (fColorSpace != B_RGB32 && fColorSpace != B_RGBA32)
+		return;
 	fChannels = fColorSpace == B_RGB32 ? 3 : 4;
 
 	fWidth = bounds.IntegerWidth() + 1;
 	fHeight = bounds.IntegerHeight() + 1;
 	
+	fVersion = PSD_FILE;
 	fCompression = PSD_COMPRESSED_RAW;
 
 	fReady = true;
@@ -63,6 +66,13 @@ PSDWriter::SetCompression(int16 compression)
 }
 
 
+void
+PSDWriter::SetVersion(int16 ver)
+{
+	fVersion = ver;
+}
+
+
 status_t
 PSDWriter::Encode(BPositionIO *target)
 {
@@ -98,16 +108,18 @@ PSDWriter::Encode(BPositionIO *target)
 				lineData[2].Append((uint8)rgba[0]); // Blue channel
 				if (fChannels == 4)
 					lineData[3].Append((uint8)rgba[3]); // Alpha channel
-				else
-					lineData[3].Append((uint8)255);
 			}
 			
 			for (int channelIdx = 0; channelIdx < fChannels; channelIdx++) {
 				BDataArray *packedLine = PackBits(lineData[channelIdx].Buffer(),
 					lineData[channelIdx].Length());
-				psdByteCounts[channelIdx].Append((uint16)packedLine->Length());
-				psdChannel[channelIdx].Append(packedLine->Buffer(),
-					packedLine->Length());
+
+				if (fVersion == PSD_FILE)
+					psdByteCounts[channelIdx].Append((uint16)packedLine->Length());
+				else
+					psdByteCounts[channelIdx].Append((uint32)packedLine->Length());
+
+				psdChannel[channelIdx].Append(*packedLine);
 				delete packedLine;
 			}
 		}
@@ -117,7 +129,7 @@ PSDWriter::Encode(BPositionIO *target)
 	// PSD header
 	BDataArray psdHeader(64);
 	psdHeader << "8BPS"; // Signature
-	psdHeader << (uint16)1; // Version = 1
+	psdHeader << (uint16)fVersion; // Version
 	psdHeader.Repeat(0, 6); // Reserved
 	psdHeader << fChannels; // Channels
 	psdHeader << fHeight << fWidth; // Image size
@@ -155,26 +167,31 @@ PSDWriter::Encode(BPositionIO *target)
 	psdLayersSection << (uint32)fWidth;	
 	psdLayersSection << (uint16)fChannels;
 	
-	for (int channelIdx = 0; channelIdx < 3; channelIdx++) {
-		psdLayersSection << (int16)channelIdx; // Channel num
+	for (int channelIdx = 0; channelIdx < fChannels; channelIdx++) {
+		if (channelIdx == 3)
+			psdLayersSection << (int16)-1; // Alpha channel id (-1)
+		else
+			psdLayersSection << (int16)channelIdx; // Channel num
+			
 		if (fCompression == PSD_COMPRESSED_RAW) {
-			psdLayersSection << (uint32)(psdChannel[channelIdx].Length()
-				+ sizeof(int16));
+			if (fVersion == PSD_FILE) {
+					psdLayersSection << (uint32)(psdChannel[channelIdx].Length()
+						+ sizeof(int16));
+			} else {
+					psdLayersSection << (uint64)(psdChannel[channelIdx].Length()
+						+ sizeof(int16));
+			}
 		} else {
-			psdLayersSection << (uint32)(psdChannel[channelIdx].Length()
-				+ psdByteCounts[channelIdx].Length() + sizeof(int16));
-		}
-	}
-	if (fChannels == 4) {
-		psdLayersSection << (int16)-1; // Alpha channel id (-1)
-		if (fCompression == PSD_COMPRESSED_RAW) {
-			psdLayersSection << (uint32)(psdChannel[3].Length()
-				+ sizeof(int16));
-		} else {
-			psdLayersSection << (uint32)(psdChannel[3].Length()
-				+ psdByteCounts[3].Length() + sizeof(int16));			
+			if (fVersion == PSD_FILE) {
+				psdLayersSection << (uint32)(psdChannel[channelIdx].Length()
+					+ psdByteCounts[channelIdx].Length() + sizeof(int16));
+			} else {
+				psdLayersSection << (uint64)(psdChannel[channelIdx].Length()
+					+ psdByteCounts[channelIdx].Length() + sizeof(int16));
+			}
 		}
 	}
+
 	psdLayersSection << "8BIM";
 	psdLayersSection << "norm"; // Blend mode = norm
 	psdLayersSection << (uint8)255; // Opacity
@@ -192,16 +209,13 @@ PSDWriter::Encode(BPositionIO *target)
 	if (fCompression == PSD_COMPRESSED_RAW) {
 		for (int channelIdx = 0; channelIdx < fChannels; channelIdx++) {
 			psdLayersSection << fCompression; // Compression mode
-			psdLayersSection.Append(psdChannel[channelIdx].Buffer(),
-				psdChannel[channelIdx].Length()); // Layer image data
+			psdLayersSection.Append(psdChannel[channelIdx]); // Channel data
 		}
 	} else {	
 		for (int channelIdx = 0; channelIdx < fChannels; channelIdx++) {
 			psdLayersSection << fCompression; // Compression mode
-			psdLayersSection.Append(psdByteCounts[channelIdx].Buffer(),
-				psdByteCounts[channelIdx].Length()); // Bytes count
-			psdLayersSection.Append(psdChannel[channelIdx].Buffer(),
-				psdChannel[channelIdx].Length()); // Layer image data
+			psdLayersSection.Append(psdByteCounts[channelIdx]); // Bytes count
+			psdLayersSection.Append(psdChannel[channelIdx]); // Channel data
 		}
 	}
 
@@ -217,8 +231,13 @@ PSDWriter::Encode(BPositionIO *target)
 	_WriteUInt32ToStream(target, psdImageResourceSection.Length());
 	psdImageResourceSection.WriteToStream(target);
 
-	_WriteUInt32ToStream(target, psdLayersSection.Length() + sizeof(int32));
-	_WriteUInt32ToStream(target, psdLayersSection.Length());
+	if (fVersion == PSD_FILE) {
+		_WriteUInt32ToStream(target, psdLayersSection.Length() + sizeof(int32));
+		_WriteUInt32ToStream(target, psdLayersSection.Length());
+	} else {
+		_WriteUInt64ToStream(target, psdLayersSection.Length() + sizeof(int64));
+		_WriteUInt64ToStream(target, psdLayersSection.Length());		
+	}
 	psdLayersSection.WriteToStream(target);
 
 	// Merged layer
@@ -281,6 +300,22 @@ PSDWriter::PackBits(uint8 *buff, int32  len)
 }
 
 
+void
+PSDWriter::_WriteInt64ToStream(BPositionIO *stream, int64 val)
+{
+	val = B_HOST_TO_BENDIAN_INT64(val);
+	stream->Write(&val, sizeof(int32));
+}
+
+
+void
+PSDWriter::_WriteUInt64ToStream(BPositionIO *stream, uint64 val)
+{
+	val = B_HOST_TO_BENDIAN_INT64(val);
+	stream->Write(&val, sizeof(uint64));
+}
+
+
 void
 PSDWriter::_WriteInt32ToStream(BPositionIO *stream, int32 val)
 {
diff --git a/src/add-ons/translators/psd/PSDWriter.h b/src/add-ons/translators/psd/PSDWriter.h
index 739add7974..be9712890f 100644
--- a/src/add-ons/translators/psd/PSDWriter.h
+++ b/src/add-ons/translators/psd/PSDWriter.h
@@ -30,11 +30,14 @@ public:
 					PSDWriter(BPositionIO *stream);
 					~PSDWriter();
 
-	bool			IsReady(void);	
+	bool			IsReady(void);
 	void			SetCompression(int16 compression);
+	void			SetVersion(int16 version);
 	status_t		Encode(BPositionIO *target);
 
 private:
+	void			_WriteInt64ToStream(BPositionIO *stream, int64);
+	void			_WriteUInt64ToStream(BPositionIO *stream, uint64);
 	void			_WriteInt32ToStream(BPositionIO *stream, int32);
 	void			_WriteUInt32ToStream(BPositionIO *stream, uint32);
 	void			_WriteInt16ToStream(BPositionIO *stream, int16);
@@ -57,6 +60,7 @@ private:
 	int32			fWidth;
 	int32			fHeight;
 	int16			fCompression;
+	int16			fVersion;
 	
 	bool			fReady;
 };