What an overlay is and why you'd use one

An overlay in OBS (Open Broadcaster Software) is an image, text, or graphic that sits on top of your video stream without blocking what you're broadcasting. It stays visible to your audience the whole time you're live. Common overlays include your name or channel logo in a corner, a webcam frame, a chat box, alerts when someone subscribes, or a banner showing what game you're playing.

Overlays make your stream look finished and professional. They also let viewers know who you are and what's happening, especially if they're watching on a small screen or just tuned in. You control exactly where the overlay appears and whether it shows all the time or only in certain situations.

Key Takeaways

  • OBS overlays are images or graphics that sit on top of your stream; you add them by importing an image file into a new source in your scene.
  • You can position, resize, and layer multiple overlays by dragging them in the preview window and adjusting their stacking order in the sources list.
  • Transparent PNG files work best for overlays because they let your stream show through the parts you don't want covered.
  • Animated overlays and alerts require browser sources or plugins, which pull content from a URL or external tool rather than a static image file.
  • Test your overlay on a small stream or recording first to make sure it doesn't cover important parts of your content and that it looks right at your broadcast resolution.

Adding a static image overlay in three steps

Start with an image file on your computer. PNG files with a transparent background work best because they let your stream show through the empty parts. If you're using a JPG or other format with a solid background, that background will block whatever's behind it.

Open OBS and select the scene where you want the overlay to appear. In the Sources panel at the bottom left, click the plus icon and choose Image. A dialog box opens. Click Browse, find your image file, and click Open. OBS adds the image to your scene.

The image appears in your preview window. Click and drag it to move it where you want. Grab the corners to resize it. If the overlay is too big or too small, right-click it in the Sources list and choose Scale Filtering to make it look sharper when you resize it. When it looks right, you're done — the overlay will appear on your stream.

Positioning and layering multiple overlays

If you have more than one overlay, the order they appear in the Sources list controls which one sits on top. The source at the bottom of the list appears in front of everything else. Drag sources up and down in the list to change what covers what. This matters if overlays overlap — you might want your logo on top of your webcam frame, or your webcam frame on top of your game.

To position overlays precisely, click one in the preview window and use the arrow keys on your keyboard to nudge it one pixel at a time. For larger moves, click and drag. If you want an overlay to stay in the same spot even when you switch scenes, you can add it to multiple scenes instead of moving it each time.

You can also adjust how see-through an overlay is. Right-click the source in the Sources list, choose Opacity, and drag the slider. This is useful if an overlay is blocking something important but you still want it visible — lowering the opacity lets viewers see through it.

Using transparent backgrounds so overlays blend in

A transparent background means the parts of your image you don't need are invisible, so they don't block your stream. When you create or read an overlay, look for PNG format with transparency. If you read a JPG overlay that has a white or colored background, it will cover everything behind it.

If you have an image editor like GIMP (free) or Photoshop, you can add transparency yourself. Open the image, select the background color you want to remove, delete it, and save as PNG. Many free overlay websites let you choose PNG with transparency when you read.

Test the overlay in OBS before you go live. If you see a solid color or white background around your logo or graphic, it's not transparent — either find a PNG version or edit it to remove the background.

Adding animated overlays and alerts with browser sources

Static images work for logos and frames, but animated overlays — like alerts that pop up when someone subscribes, or a chat box that updates in real time — need a different approach. These use a browser source, which pulls content from a web address instead of a file on your computer.

In OBS, click the plus icon in Sources and choose Browser Source. A dialog opens. Paste the URL of the overlay or alert service you're using. Services like Streamlabs, Twitch's native alerts, or third-party tools like StreamElements provide URLs you can paste here. OBS then displays that web content as part of your scene, and it updates live.

Browser sources need internet connection to work, and they can use more of your computer's power than static images. If your stream starts lagging, try closing browser sources you're not actively using, or lower the resolution of the browser source in OBS settings.

Resizing overlays for your broadcast resolution

Your overlay needs to fit your broadcast resolution — the size of the video you're sending to the platform. Common resolutions are 1920 by 1080 (full HD) or 1280 by 720 (HD). If your overlay is much larger or smaller than your resolution, it will look wrong or take up too much space.

When you add an image overlay, OBS shows it at its original size. If it's too big, grab the corner and drag to shrink it. Hold Shift while dragging to keep the proportions the same so it doesn't look stretched. If you're not sure what size to make it, start with something that takes up about 10 to 20 percent of your screen — big enough to see, small enough not to block your content.

Test your stream at the resolution you'll actually broadcast at. If you're streaming at 720p but you design overlays for 1080p, they'll look different when you go live. Record a short test stream and watch it back to see how the overlay looks at full size.

Common overlay mistakes and how to avoid them

The most common mistake is making the overlay too big or placing it where it blocks important content. If you're streaming a game, don't cover the center of the screen. If you're on camera, don't block your face. Test on a recording first so you can see exactly what your audience will see.

Another mistake is using an overlay with a solid background when you meant to use transparency. This creates a colored box around your graphic that covers everything behind it. Always check that you're downloading or creating PNG files with transparency.

Overlays can also lag your stream if they're too complex or if you're using too many browser sources at once. Start straightforward — a logo and a webcam frame — and add more only if your computer can handle it. If your stream starts stuttering, disable overlays one at a time to find which one is causing the problem.

Frequently Asked Questions

Can I use the same overlay in multiple scenes?

Yes. Add the overlay to each scene separately, and it will appear in all of them. If you want to move it, you have to adjust it in each scene individually. Alternatively, create a separate scene that contains only the overlay, then add that scene as a source in your other scenes — changes to the overlay scene will show up everywhere.

What file format works best for overlays?

PNG with a transparent background is best because it lets your stream show through the parts you don't need. JPG, BMP, and GIF also work, but they have solid backgrounds that will block whatever's behind them. If you're downloading overlays, look for PNG format.

How do I make an overlay appear only during certain parts of my stream?

In OBS, right-click the overlay source and choose Visibility. You can toggle it on and off manually during your stream by clicking the eye icon next to the source. Some overlays, like alerts, appear and disappear automatically based on events like subscriptions or donations.

Why does my overlay look blurry or pixelated?

This usually happens when you resize an image much larger than its original size. Use an overlay that's already close to the size you need, or create overlays at a higher resolution before you add them to OBS. You can also right-click the source and enable Scale Filtering to improve how it looks when resized.

Can I animate text or create a scrolling overlay?

Static images can't animate, but you can use a browser source to display animated content from a website or tool. Services like Streamlabs and StreamElements let you create animated overlays and alerts that update in real time. You paste the URL into a browser source in OBS, and the animation plays live.