Everything You Need to Know About Photoshop’s New Dynamic Text Feature
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Dynamic Text in Photoshop reflows your copy on its own as you resize or reshape the text box.
In April 2025, Adobe rolled out a long-awaited feature in the Photoshop Beta: Dynamic Text. With this tool, your text automatically reflows as you resize or reshape the bounding box. No more manual tweaking to keep your layout looking clean. Let’s walk through how it works!
Note: The video was recorded in the Photoshop Beta. Dynamic Text reached the general release in Photoshop 26.8 in June 2025, so you no longer need the beta to follow along.
Key Takeaways
- Dynamic Text reflows type inside the bounding box as you drag its handles, and the layer stays fully editable.
- Font size is calculated from the bounding box. You cannot type a point size on a Dynamic Text layer.
- Manual line breaks added with Enter or Return survive every resize, so a word can stay on its own line.
- Word Gap and Line Gap are the two settings exclusive to Dynamic Text. Line Gap replaces leading, which does not work on these layers.
- The standard type shortcuts for bold, italic, kerning, tracking and baseline shift still work on a Dynamic Text layer.
Table of contents
- What You Will Learn
- Requirements
- Dynamic Text in Photoshop Keyboard Shortcuts
- Step 1: Enable Dynamic Text
- Step 2: Resize the Bounding Box
- Step 3: Keep Manual Line Breaks (Optional)
- Step 4: Scale the Text Without Distorting the Box
- Step 5: Format Your Text
- Step 6: Use Keyboard Shortcuts for Formatting
- Step 7: Adjust Kerning (Space Between Two Characters)
- Step 8: Adjust Tracking (Spacing Between All Characters)
- Step 9: Adjust Word Gap (Dynamic Text Exclusive)
- Step 10: Adjust Line Gap
- Step 11: Adjust Baseline Shift (For Specific Lines)
- Frequently Asked Questions
- Conclusion
- Related Links
What You Will Learn
- How to turn on Dynamic Text in Photoshop from the Options Bar or the Layers panel
- How to resize the bounding box so the text reflows on its own
- How to keep manual line breaks when the box changes
- How to format Dynamic Text with the panels and the keyboard shortcuts
- How to control kerning, tracking, Word Gap, Line Gap and Baseline Shift
Requirements
Before you start
- Photoshop 2025 (version 26.8 or later) or the current version
- Any document with a Type Layer on it
Dynamic Text in Photoshop Keyboard Shortcuts
| Action | Windows | macOS |
|---|---|---|
| Move the layer while the bounding box is active (hold and drag) | Ctrl | Command |
| Insert a manual line break | Enter | Return |
| Commit the text changes | Ctrl Enter | Command Return |
| Move Tool | V | V |
| Free Transform (show the transform handles) | Ctrl T | Command T |
| Select all the text | Ctrl A | Command A |
| Bold | Ctrl Shift B | Command Shift B |
| Italic | Ctrl Shift I | Command Shift I |
| Underline | Ctrl Shift U | Command Shift U |
| Strikethrough | Ctrl Shift / | Command Shift / |
| All Caps | Ctrl Shift K | Command Shift K |
| Small Caps | Ctrl Shift H | Command Shift H |
| Clear Formatting | Ctrl Shift Y | Command Shift Y |
| Exit Edit Mode | Esc | Esc |
| Kerning between two characters | Alt Left Arrow or Alt Right Arrow | Option Left Arrow or Option Right Arrow |
| Tracking on selected text | Shift Alt Left Arrow or Shift Alt Right Arrow | Shift Option Left Arrow or Shift Option Right Arrow |
| Baseline Shift on selected lines | Shift Alt Up Arrow or Shift Alt Down Arrow | Shift Option Up Arrow or Shift Option Down Arrow |
Step 1: Enable Dynamic Text
Open Photoshop and select a Type Layer. Go to the Options Bar and click on the Dynamic Text icon, a “T” with a lightning bolt.
Alternative method: Right-click the text layer in the Layers panel and choose Convert to Dynamic Text.

Once activated, the icon will also appear on the layer’s thumbnail, and when hovered, it says “Magic Text Layer.”
Step 2: Resize the Bounding Box
Click inside the text layer to show the bounding box. Drag the corners or sides to resize or reshape the box. As you do this, the text will automatically reflow inside the new dimensions.

To move the layer while resizing: Hold Ctrl (Windows) or Command (macOS) and drag the box.
Step 3: Keep Manual Line Breaks (Optional)

If you want a word (like “Photoshop”) on its own line: Highlight the space after the word and press Enter (Windows) or Return (macOS).

Do the same before the word. Photoshop will preserve that formatting, even when you resize the text box.

Step 4: Scale the Text Without Distorting the Box
Press CtrlEnter (Windows) or CommandReturn (macOS) to commit the text changes. Press V (Windows) or V (macOS) to select the Move Tool. Drag the corner handles to scale the layer visually.
Scaling a type layer leaves its font size at odd decimal values. The Paragraph Styles tutorial shows how to fix that font size problem.
If you don’t see the handles, enable Show Transform Controls in the Options Bar or press CtrlT (Windows) or CommandT (macOS).

Step 5: Format Your Text
You can edit Dynamic Text using:
- Contextual Taskbar
- Options Bar
- Properties Panel
- Character Panel

Change Font and Color
- Highlight any text.
- Use the dropdown to pick a different font.
- Click the color swatch to change its color.

Note: Font size cannot be set manually. It adjusts based on the bounding box.
Step 6: Use Keyboard Shortcuts for Formatting
With text highlighted, try these:
- Bold: CtrlShiftB (Windows) or CommandShiftB (macOS)
- Italic: CtrlShiftI (Windows) or CommandShiftI (macOS)
- Underline: CtrlShiftU (Windows) or CommandShiftU (macOS)
- Strikethrough: CtrlShift/ (Windows) or CommandShift/ (macOS)
- All Caps: CtrlShiftK (Windows) or CommandShiftK (macOS)
- Small Caps: CtrlShiftH (Windows) or CommandShiftH (macOS)
- Clear Formatting: CtrlShiftY (Windows) or CommandShiftY (macOS)

If a font has a true bold or italic variant, Photoshop will automatically apply that instead of using faux styling.
Tip: To strip every style at once, select all the text with CtrlA (Windows) or CommandA (macOS), then use the Clear Formatting shortcut. A true bold or italic weight stays, because Photoshop treats it as a font change. Pick Regular from the font style dropdown to remove it.
Step 7: Adjust Kerning (Space Between Two Characters)
Place the cursor between the two characters. Hold Alt (Windows) or Option (macOS).
Tap the Left Arrow or Right Arrow key to adjust spacing.

Step 8: Adjust Tracking (Spacing Between All Characters)
Option A – Using the Properties Panel
Press Esc (Windows) or Esc (macOS) to exit Edit Mode. Use the Tracking dropdown in the Properties Panel.

Option B – Keyboard Shortcut
Select the text you want to adjust.
Hold ShiftAlt (Windows) or ShiftOption (macOS) and tap the Left Arrow or Right Arrow key.

This shortcut only works when text is selected, not for global tracking.
Step 9: Adjust Word Gap (Dynamic Text Exclusive)
Press Esc (Windows) or Esc (macOS) to exit Edit Mode. In the Properties Panel, find the Word Gap under Dynamic Text.
Use the percentage slider to increase/decrease space between words.

Tip: Hover over the label, then click and drag left/right to adjust.
Step 10: Adjust Line Gap
Still in the Dynamic Text section, locate Line Gap. Use it to adjust space between lines globally.
0% = tight spacing
Higher values = more space

This replaces traditional leading, which does not work with Dynamic Text.
Step 11: Adjust Baseline Shift (For Specific Lines)
Select a specific line of text. Click the three-dot icon in the Properties Panel to expand options.
Use the Baseline Shift dropdown to move lines up or down.

To adjust multiple lines at once:
Highlight them all and use the same dropdown or the shortcut:
Hold ShiftAlt (Windows) or ShiftOption (macOS) and tap the Up Arrow or Down Arrow key.

Frequently Asked Questions
Dynamic Text is a type layer mode where the text reflows on its own as you resize or reshape the bounding box. The font size is calculated from the box instead of set by hand. You turn it on with the Dynamic Text icon in the Options Bar.
Select the Type Layer and click the Dynamic Text icon in the Options Bar, the T with a lightning bolt. You can also right-click the layer in the Layers panel and choose Convert to Dynamic Text. The same icon then appears on the layer thumbnail.
The font size is dynamic. Photoshop calculates it from the size of the bounding box, so the size field is not adjustable. To make the text bigger or smaller, resize the box, or commit the text and scale the whole layer with the Move Tool transform handles.
Highlight the space after the word and press Enter (Windows) or Return (macOS), then do the same before the word. Photoshop keeps those manual line breaks no matter how wide you make the text box.
They are the two settings exclusive to Dynamic Text, found in the Dynamic Text section of the Properties Panel. Word Gap controls the space between words as a percentage. Line Gap controls the space between all lines, with 0% giving tight lines and higher values giving more room.
Dynamic Text in Photoshop calculates line spacing from the bounding box, so the traditional leading control has no effect. Use Line Gap to space every line, and Baseline Shift in the Properties Panel to move one line or a selection of lines.
If the font has a true bold or italic weight, Photoshop switches to that weight instead of applying a faux style. That counts as a font change, so the Clear Formatting shortcut does not undo it. Select the text and choose Regular from the font style dropdown.
Conclusion
Dynamic Text makes working with type in Photoshop so much smoother, finally giving us responsive, editable text that adapts as we design.
Once your layout is set, try placing text behind anything in Photoshop for a cover-style look.
Watch the full video above to see every setting in action, and comment on the video if you have a question.
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