By default, the photos and videos you import into 'Photos' are stored in the Photos library on your Mac. When you import photos and videos from another folder or a storage device, then you can use 'Photos' to leave them in their original locations so they don't take up an extra space on your Mac. You can still view them in Photos. The photos and videos stored outside your Photo Library are called 'Referenced Files'. If you store photos and videos outside your Photo Library, then it will save space on your Mac. The photos and videos outside the Photos Library are not stored in your iCloud Photo Library. So these are not accessible to any other Mac or device that uses iCloud Photo Library. If you disconnect the device where the photos and videos are located, or move or rename them in the Finder, then 'Photos' won’t be able to locate them, so you can’t work with them in the Photos app.
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