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This article explains in detail how media is managed after importing to FCP from the Frame.io panel.

When media is dragged from the Frame.io Workflow Extension into the Media Browser or the timeline, Final Cut Pro downloads the file, and it is stored in your chosen storage location. By default, this is set to In Library. However, you can select a folder outside of your Library if you want to keep your Library size small.

NOTE: The download will continue in the background within Final Cut Pro while navigating other pages within the Frame.io panel.

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