Photoshop CC 2014 makes it really easy to update a Linked Smart Object when changes are made to the external, linked file. In the illustration below, I have placed a graphic that was created in Adobe Illustrator into my Photoshop document. The image is still being refined by another artist on my team.
After the artist updated the graphic (the linked document) in Illustrator, I opened the “master” document. Photoshop automatically displays a warning icon in both the Layers and Properties panel. Photoshop doesn’t automatically update the master document with the updated linked file because, in some instances, you might not want that updated version – perhaps you disagree with the artist’s updates. : )
To update the link, click on the Icon in the Properties panel and choose Update Modified Content.
Voilà! The master document is updated.