Paragraph spacing lets you fine-tune the space between paragraphs, enhancing the layout and readability of your text. This feature is crucial for creating visually appealing designs with well-structured text.

To adjust paragraph spacing:

1. Select the text layer with the paragraphs you wish to format.
2. Input a pixel (px) value in the paragraph spacing field in the Typography section of the Design panel to set the exact distance you want between paragraphs. This value represents the space in pixels and it is set to 0px by default.
3. Alternatively, you can hover over the spacing icon and drag left to decrease or right to increase the spacing value, allowing for intuitive adjustments.

Pressing the Enter (Windows) or Return (Mac) creates a new paragraph. This is particularly important to consider if your text is set to Auto width, as it affects how text and spacing are displayed in your design.