diff --git a/crates/engine/src/psd_import.rs b/crates/engine/src/psd_import.rs
index 2ff363b4..cc0cfa2c 100644
--- a/crates/engine/src/psd_import.rs
+++ b/crates/engine/src/psd_import.rs
@@ -115,10 +115,45 @@ pub fn import(proj: &mut Project, psd: &Psd, path: &str, name: &str, retain: boo
     if flattened > 0 {
         cx.warnings.push(format!("{flattened} group(s) nested deeper than {} levels were flattened into their parent", effectcraft_psd::MAX_GROUP_DEPTH));
     }
-    let comp = build_comp(proj, &mut cx, name, &tree, None);
+    cx.warnings.extend(psd.warnings.iter().cloned());
+    let comp = if psd.layers.is_empty() && !psd.warnings.is_empty() {
+        flattened_comp(proj, &mut cx, name)
+    } else {
+        build_comp(proj, &mut cx, name, &tree, None)
+    };
     PsdImport { comp, folder, items: cx.items, warnings: cx.warnings }
 }
 
+/// The layers could not be read: the merged image as the composition's only layer.
+fn flattened_comp(proj: &mut Project, cx: &mut Ctx, name: &str) -> ItemId {
+    let cid = proj.add_item(name, Label::Sandstone, None, ItemKind::Comp(Arc::new(new_comp(cx))));
+    cx.items.push(cid);
+    let mut comp = new_comp(cx);
+    let file = std::path::Path::new(cx.path).file_name().map(|n| n.to_string_lossy().to_string()).unwrap_or_default();
+    let f = Footage {
+        path: cx.path.to_string(),
+        kind: FootageKind::Still,
+        width: cx.psd.width,
+        height: cx.psd.height,
+        pixel_aspect: 1.0,
+        frame_rate: cx.rate,
+        has_video: true,
+        alpha: if cx.psd.merged_alpha { AlphaMode::Straight } else { AlphaMode::Ignore },
+        loop_count: 1,
+        codec: "PSD".into(),
+        layer: None,
+        ..Default::default()
+    };
+    let id = proj.add_item(&file, Label::Lavender, Some(cx.folder), ItemKind::Footage(f));
+    cx.items.push(id);
+    let l = build::layer(proj, &comp, name, LayerSource::Footage { item: id }, (cx.psd.width, cx.psd.height), None);
+    comp.layers.push(l);
+    if let Some(item) = proj.item_mut(cid) {
+        item.kind = ItemKind::Comp(Arc::new(comp));
+    }
+    cid
+}
+
 fn new_comp(cx: &Ctx) -> Comp {
     // A PSB can be 300,000 px a side; a composition is at most 30,000 (#788).
     let size = |v: u32| effectcraft_project::limits::size(v.into());
diff --git a/crates/engine/src/tests_vector_import.rs b/crates/engine/src/tests_vector_import.rs
index 8656dfaa..63513b91 100644
--- a/crates/engine/src/tests_vector_import.rs
+++ b/crates/engine/src/tests_vector_import.rs
@@ -310,3 +310,30 @@ fn psd_with_thousands_of_nested_groups_imports_on_a_small_stack() {
     assert_eq!(comps, 65);
     assert!(warned);
 }
+
+#[test]
+fn psd_with_damaged_layer_section_imports_the_flattened_image() {
+    let mut d = WDoc::new(30, 20);
+    d.layers = vec![
+        WLayer::solid("Back", Rect::new(0, 0, 30, 20), [0.0, 0.0, 1.0, 1.0]),
+        WLayer::solid("Box", Rect::new(2, 2, 8, 8), [1.0, 0.0, 0.0, 1.0]).with_blend(b"mul "),
+    ];
+    let mut bytes = write(&d);
+    let at = bytes.windows(8).position(|w| w == b"8BIMmul ").unwrap();
+    bytes[at] = b'X';
+    let path = tmp("damaged.psd");
+    std::fs::write(&path, bytes).unwrap();
+    let mut s = Session::default();
+    let r = s.execute_checked("file.import", json!({"paths": [path], "importAs": "composition"})).unwrap();
+    // Photoshop import warnings are reported with the import's `errors` (as for adjustment layers).
+    let warnings = r["errors"].as_array().unwrap();
+    assert_eq!(warnings.len(), 1, "{r}");
+    assert!(warnings[0].as_str().unwrap().contains("Layers could not be read"), "{r}");
+    let cid = effectcraft_project::ItemId(r["comps"][0].as_u64().unwrap());
+    let c = s.project.comp(cid).unwrap().clone();
+    assert_eq!((c.width, c.height), (30, 20));
+    assert_eq!(c.layers.len(), 1);
+    let LayerSource::Footage { item } = c.layers[0].source else { panic!("footage") };
+    let ItemKind::Footage(f) = &s.project.item(item).unwrap().kind else { panic!() };
+    assert!(f.layer.is_none(), "the merged image, not a Photoshop layer");
+}
diff --git a/crates/psd/src/lib.rs b/crates/psd/src/lib.rs
index d99b558b..2fcd76e3 100644
--- a/crates/psd/src/lib.rs
+++ b/crates/psd/src/lib.rs
@@ -343,6 +343,9 @@ pub struct Psd {
     pub palette: Vec<u8>,
     /// Files embedded for smart objects.
     pub linked: Vec<LinkedFile>,
+    /// Repairs made while reading: damage that was skipped instead of failing the document
+    /// (for example an unreadable layer section, in which case only the merged image is kept).
+    pub warnings: Vec<String>,
     data: Arc<[u8]>,
     merged_offset: usize,
 }
@@ -391,6 +394,7 @@ impl Psd {
             merged_alpha: false,
             palette,
             linked: vec![],
+            warnings: vec![],
             data: data.clone(),
             merged_offset: 0,
         };
@@ -399,8 +403,17 @@ impl Psd {
         if lm_len > 0 {
             let li_len = r.length(psb)?;
             let li_end = r.pos.checked_add(li_len).filter(|&e| e <= lm_end).ok_or(Error::Truncated)?;
-            if li_len > 0 {
-                psd.layer_info(&data, r.pos, li_end)?;
+            if li_len > 0
+                && let Err(e) = psd.layer_info(&data, r.pos, li_end)
+            {
+                // A damaged layer section must not discard the document: keep the header and the
+                // merged image, drop the layers and say so. Without a merged image there is
+                // nothing to fall back to, so the original error stands.
+                if lm_end.checked_add(2).is_none_or(|n| n > data.len()) {
+                    return Err(e);
+                }
+                psd.layers.clear();
+                psd.warnings.push(format!("Layers could not be read ({e}); only the flattened image is available"));
             }
             r.pos = li_end;
             if r.pos + 4 <= lm_end {
@@ -426,6 +439,10 @@ impl Psd {
                 r.pos = end;
             }
         }
+        if !psd.layers.is_empty() {
+            // A 16/32-bit layer block recovered the layers.
+            psd.warnings.clear();
+        }
         psd.merged_offset = lm_end;
         Ok(psd)
     }
diff --git a/crates/psd/src/tests.rs b/crates/psd/src/tests.rs
index a0931383..9252808e 100644
--- a/crates/psd/src/tests.rs
+++ b/crates/psd/src/tests.rs
@@ -434,3 +434,58 @@ fn rle_composite_matches_the_raw_one() {
         assert_eq!(rle.layer_pixels(2, true).unwrap().data, raw.layer_pixels(2, true).unwrap().data, "{depth} bit");
     }
 }
+
+fn find(bytes: &[u8], needle: &[u8]) -> usize {
+    bytes.windows(needle.len()).position(|w| w == needle).expect("needle present")
+}
+
+/// The second layer record's signature overwritten.
+fn bad_signature() -> Vec<u8> {
+    let mut bytes = write(&doc_with_layers(8, ColorMode::Rgb, true));
+    let at = find(&bytes, b"8BIMmul ");
+    bytes[at] = b'X';
+    bytes
+}
+
+/// The first channel of the first layer claims more data than the file holds.
+fn bad_channel_length() -> Vec<u8> {
+    let mut bytes = write(&doc_with_layers(8, ColorMode::Rgb, true));
+    let at = find(&bytes, b"8BIMnorm");
+    let first_len = at - 4 * 6 + 2;
+    bytes[first_len..first_len + 4].copy_from_slice(&0x7fff_fff0u32.to_be_bytes());
+    bytes
+}
+
+#[test]
+fn damaged_layer_section_keeps_the_merged_image() {
+    let good = Psd::parse(write(&doc_with_layers(8, ColorMode::Rgb, true))).unwrap();
+    assert!(good.warnings.is_empty() && good.layers.len() == 3);
+    let want = good.composite().unwrap();
+    for bytes in [bad_signature(), bad_channel_length()] {
+        let p = Psd::parse(bytes).unwrap();
+        assert!(p.layers.is_empty());
+        assert_eq!(p.warnings.len(), 1, "{:?}", p.warnings);
+        assert!(p.warnings[0].contains("Layers could not be read"));
+        assert_eq!((p.width, p.height), (40, 30));
+        let got = p.composite().unwrap();
+        assert_eq!(got.data, want.data);
+    }
+}
+
+#[test]
+fn header_damage_and_missing_merged_image_still_fail() {
+    let good = write(&doc_with_layers(8, ColorMode::Rgb, true));
+    // Zero width.
+    let mut b = good.clone();
+    b[18..22].copy_from_slice(&0u32.to_be_bytes());
+    assert!(Psd::parse(b).is_err());
+    // Unknown colour mode.
+    let mut b = good.clone();
+    b[24..26].copy_from_slice(&99u16.to_be_bytes());
+    assert!(Psd::parse(b).is_err());
+    // Damaged layers and no merged image at all: nothing to fall back to.
+    let end = Psd::parse(good).unwrap().merged_offset;
+    let mut b = bad_signature();
+    b.truncate(end);
+    assert!(Psd::parse(b).is_err());
+}