Wrapping an image around an object in Photoshop emphasizes the apparent three-dimensionality of the wrapped object, which can make your compositions more engaging. For example, wrapping text ...

The Text & Image component allows you to display text to the right of an image with an appropriate amount of whitespace padding around the image. Large amounts of text will wrap around the image.

Text wrapping is important, because many Word document creators want to include in-line images, but square text wrapping isn't Word's go-to choice -- users have to select this forced line layout.