Converting your ePSXe library to CHD (Compressed Hunks of Data) files is the best way to save disk space without losing game quality. What are CHD Files? : No data is lost during the process. Space saver : Reduces file sizes by 30% to 60%.
This is the most common point of confusion. The standalone version of ePSXe (v1.7.0 and v2.0.5) does have native built-in support to load .chd files directly from the "Run ISO" menu. It natively supports .bin , .iso , .img , and .pbp .
Yes, ePSXe officially supports CHD files in its most recent updates.