DMG files can also contain compressed files like any other archive format, however, so it’s possible that there might be files in a DMG file that you would want to get access to. ISO files in Windows – a compressed file image containing the files necessary for a software installation (often an OS X installation). DMG files are image files from the Mac OS X used to clone hard drives or installation discs. If people on a Windows system see a file that has a “.DMG” extension, they often assume that it must be a damaged file of some kind.