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

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To prove that your text remains unchanged, right-click on the layer name in Photoshop and choose "Edit Contents" to open the Smart Object in Illustrator.

It will initially look like a regular file with a normal Photoshop artboard. On the Photoshop Layers palette, double-click the thumbnail with the smart object icon to open your smart object photo.

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

Photoshop sandwiches ’em into a smart object, which you can open by double-clicking.