Convert a merged footage item into a composition

When you import a layered file, such as a Photoshop or Illustrator file, as footage, all of its layers are merged together. If at any time you decide that you want access to the individual components of the footage item, you can convert it to a composition.

To convert all instances of a footage item, select it in the Project panel and choose File > Replace Footage > With Layered Comp.
To convert only one instance of the footage item, select the layer in the Timeline panel, and choose Layer > Convert To Layered Comp.
Note: It may take a few moments to convert a merged footage item to a layered composition.