Step 1: Understand Clipping Mask
To change or replace an image in Photoshop, first understand the Clipping Mask feature. Clipping masks allow you to insert an image inside a shape. Later, you can change the image by dragging below the arrow icon or using the shortcut Ctrl + Alt + G.
Step 2: Open the PSD Template
Open your PSD template, locate the red group, expand it, and find the arrow button for inserting your image.
Step 3: Insert Your Image
Place your image below the arrow button to set it. Follow the guidance in the example image below.
Step 4: Hide the Old Image
Once the new image is inserted, hide the old image. Your new image is now inside the clipping mask and ready for edits.