Real Time Texturing

I am working in tandem between blender and Photoshop. I was wondering if I can apply textures in real time in blender as I made changes in Photoshop? I have seen this capability in another program (Can’t tell what it is), but around 10 minutes of the video, right when he hits save on photoshop, his 3D Program updates with the new texture without having to re-importing it. Is this possible in blender?

Link to video:

Will this work with Cycles render? Cycles Rendering is all I have been using since I can get the looks that I usually go for.