What an overlay is and why you need one

An overlay is a graphic layer that sits on top of your video stream — think of it as a frame, banner, or set of graphics that your viewers see while you're streaming. It stays in place while your camera feed, game, or screen recording plays behind it. Overlays typically include your name or channel logo, alerts when someone follows or donates, a chat box, or a webcam border.

OBS (Open Broadcaster Software) lets you add overlays by importing image files or using built-in elements. The overlay sits in a separate layer in your scene, so you control exactly where it appears and what it covers. Most streamers use overlays to look more polished and to display information their audience needs — like a "Follow" button reminder or a donation link.

Key Takeaways

  • Overlays in OBS are added as image or video files in a new source layer within your scene, positioned on top of your other content.
  • You can create overlays yourself in Photoshop or Canva, download free templates from sites like Streamlabs or Nerd or Die, or commission a designer.
  • The most common overlay mistake is making it too large or placing it where it blocks important content like your game or face.
  • Overlays with transparent backgrounds (PNG files) blend seamlessly with your stream, while solid backgrounds can cover parts of your video you want to show.
  • Once added, you can resize, move, and hide overlays instantly using OBS's built-in tools, so you can turn them on and off during your stream.

Getting or creating an overlay file

Before you add anything to OBS, you need an overlay file. You have three main routes: download a free template, buy a pre-made overlay, or create your own.

Free templates are available from Streamlabs (streamlabs.com/overlays), Nerd or Die (nerdordie.com), and Twitch Creator Camp. These come as PNG or PSD files. Download the file to your computer and open it in an image editor if you want to change colors or add your name. If you use Photoshop or GIMP (free), you can edit the text and colors. If you don't have an editor, Canva (canva.com) has overlay templates you can customize in your browser and download as PNG.

The key detail: save your overlay as a PNG file if it has a transparent background, or as a JPG if it's a solid background. PNG files let your game or camera show through the transparent parts. JPG files will show a solid color behind your overlay, which can block content you want visible.

Adding the overlay to your OBS scene

Open OBS and navigate to the scene where you want the overlay to appear. In the bottom-left corner, you'll see a box labeled "Sources." This is where all the elements of your scene live — your camera, your game capture, your microphone, and soon, your overlay.

Right-click in the Sources box and select "Add Source." A menu will pop up. Choose "Image" if your overlay is a still graphic (PNG or JPG), or "Video" if it's an animated overlay (MP4 or WebM). A dialog box will open asking you to name the source — call it something clear like "Overlay" or "Corner Logo." Click "Create New" and then browse to find your overlay file on your computer. Select it and click "Open."

Your overlay will now appear in the preview window. It might be tiny, huge, or in the wrong spot — that's normal. You'll resize and position it next.

Resizing and positioning your overlay

In the preview window, click on your overlay to select it. You'll see red corner handles appear around it. Drag any corner handle to resize the overlay while keeping its proportions. Drag the center of the overlay to move it around the screen. Position it where it won't block your face if you're using a webcam, or your game if you're streaming gameplay.

A common mistake is making the overlay too large. A good rule: your overlay should frame your content, not cover it. If you're using a corner logo, keep it in one corner and make it small enough that it doesn't distract. If you're using a full-screen border, make sure the center area stays clear for your main content.

Once you're happy with the size and position, click elsewhere in the preview to deselect the overlay. The overlay is now part of your scene and will appear in every stream using that scene.

Layering overlays so they appear in the right order

If you add multiple overlays — say, a corner logo and a chat box frame — OBS stacks them in the order they appear in the Sources list. The source at the bottom of the list appears behind everything else. The source at the top appears in front.

To change the order, right-click on a source in the Sources list and select "Move Up" or "Move Down." This matters if overlays are covering each other. For example, if your chat box frame is behind your corner logo, move the chat box up in the list so it appears on top.

Hiding and showing overlays during your stream

You don't have to use the same overlay for your entire stream. In the Sources list, each source has an eye icon next to it. Click the eye icon to hide that overlay instantly. Click it again to show it. This is useful if you want to hide your overlay during gameplay moments, or show a different overlay for different sections of your stream.

You can also right-click on an overlay source and select "Visibility" to set it to show or hide automatically at certain times, though most streamers just click the eye icon when they need to toggle it.

Fixing common overlay problems

If your overlay looks blurry or pixelated, the image file might be too small for your stream resolution. OBS is stretching a small image to fit a large screen. Download or create a new overlay at your stream resolution — usually 1920 by 1080 pixels. You can check your resolution in OBS under Settings > Video.

If your overlay has a white or colored background you didn't want, the file is probably a JPG instead of a PNG. Download the overlay again as PNG, or open it in Canva or GIMP and delete the background layer before saving. If the overlay is covering content you need to see, resize it smaller or move it to a different corner.

If the overlay doesn't appear at all after you add it, the file path might be broken — this happens if you moved the file after adding it to OBS. Right-click the overlay source, select "Properties," and browse to the file again in its new location.

Frequently Asked Questions

Can I animate my overlay or make it move during the stream?

Yes, but you need a video file instead of an image. Create an animated overlay in After Effects or use a free tool like DaVinci Resolve, then export it as an MP4. Add it to OBS as a "Video" source instead of "Image." The animation will play on loop during your stream.

What size should my overlay be?

Create overlays at your stream resolution, which is usually 1920 by 1080 pixels. If you're unsure, check OBS Settings > Video to see your base canvas resolution. Overlays created at this size will look sharp and won't need to be stretched.

Can I use the same overlay in multiple scenes?

Yes. Add the overlay to each scene separately, and you can position it differently in each one. If you edit the overlay file on your computer, the changes will show in all scenes that use it.

Do I need to buy overlays or can I use free ones?

Free overlays work just as well as paid ones. Streamlabs and Nerd or Die have thousands of free templates. Paid overlays from designers usually offer more customization or unique designs, but they're not necessary to start streaming.

What if my overlay has a green screen background I want to remove?

Open the overlay file in Canva or GIMP and delete the background layer, then save it as PNG. The transparent background will let your stream show through. If you're not comfortable editing, search for the overlay name plus "transparent version" — many designers offer both versions.