This article explains Smart Objects in Photoshop and tells the different types of smart objects & how to create, edit, and convert them.

Before making any changes to the paper layer you should change it to a Smart object. To change it to a smart object, right-click on the paper layer and choose Convert to smart object.

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Prepare the photo In Photoshop, choose File > Open as Smart Object and navigate to the soon-to-be-painterly photo.