diff --git a/ppl2psd.py b/ppl2psd.py
index 699ebe0..1361ed7 100644
--- a/ppl2psd.py
+++ b/ppl2psd.py
@@ -472,7 +472,9 @@ def _layer_record(top, left, bottom, right, name, opacity, visible, channels) ->
     rec += b"8BIM" + b"norm"
     rec += struct.pack(">B", opacity)
     rec += struct.pack(">B", 0)          # clipping
-    rec += struct.pack(">B", 0 if visible else 2)  # flags: bit1 = hidden
+    # flags: bit3 = 1 for Photoshop 5.0+ (tells PS the extra data contains
+    # tagged blocks); bit1 = hidden
+    rec += struct.pack(">B", 0x08 | (0 if visible else 0x02))
     rec += struct.pack(">B", 0)          # filler
     # extra data
     extra = bytearray()