For Android UI design in Photoshop, it’s best to start with a base canvas size matching the density bucket you’re targeting like mdpi (baseline 160 dpi) for 320x480 pixels. Design your layout there at 72 dpi resolution in RGB mode. Then create scaled versions for hdpi, xhdpi, xxhdpi, etc., by multiplying the base size accordingly (e.g., 1.5x for hdpi). This approach helps keep your design sharp across different screen densities and sizes. Also, follow Material Design guidelines for consistent spacing and typography. Keep your layers organized for easier scaling and export.