Yes, Photoshop can save ICO files. In order to do so, simply open the ICO file in Photoshop and then go to File > Save As.
PRO TIP: When you try to save an ICO file in Photoshop, you may get a warning message telling you that the file may become corrupted if you continue. This is because ICO files are not designed to be edited in Photoshop and can therefore become damaged when saved in this format. If you do continue and save the ICO file in Photoshop, it is recommended that you make a backup copy first so that you can revert to it if needed.
In the Save As dialog box, make sure to select the ICO file format from the drop-down menu and then click Save. That’s all there is to it!
So there you have it – now you know that Photoshop can save ICO files. If you need to edit or create an ICO file, then Photoshop is a great option to consider. Just remember to use the correct file format when saving your work.