Before you can edit a Photo Stream photo in iPhoto, you need to import it into your iPhoto library. Photos you edit on your device are saved to your Camera Roll after you edit them.
To edit a Photo Stream photo in iPhoto:
In Photo Stream view, select the photo you want to edit, and then click the Edit button in the toolbar.
If the photo has already been imported into your iPhoto library, click “Show in library.” If it hasn’t been imported, click Import.
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Edit the photo.
For more information about editing photos in iPhoto, see Editing overview and its related topics.
To edit a Photo Stream photo on an iOS device:
On your device’s Home screen, tap Photos, and then tap Photo Stream.
Tap the photo you want to edit, and then tap the Edit button in the upper-right corner.
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Edit the photo.
For more information about editing photos on an iOS device, see the documentation for the device.
When your edits are complete, tap the Save button in the upper-right corner.
Tap “Save to Camera Roll.”
When you edit a Photo Stream photo, the version of the photo in Photo Stream remains unchanged from the original. To add an edited photo to Photo Stream, see Add photos to Photo Stream.