How To Use Overlays In Photoshop Posted on 23rd December 2016 Ensure that your file has been downloaded and unzipped to use. 1- Open up Photoshop. 2-Open the image you would like to use the overlay on. 3- Select File > Place Embedded. 4- Select your overlay file and click on Place. 5- The overlay will appear on your image. 6- Resize the overlay to cover your image and select the tick on the top toolbar. 7- Once your overlay is covering your image, select the blending mode on the layers palette. 8-Select the overlay option in the blending mode. This will make the overlay transparent but still show the effect from the overlay on your image. 9- With the blending mode in the palette you can try different options to create different overlay effects. Overlays are from designbundles.net and the file is called Dust Mega Pack.