Photoshop overlays is simply an image or texture that you add to a photograph. Basically overlays are images files themselves.
Here is quick tutorial on how to use or install your overlays in photoshop easily within 4-5 minutes.
HOW TO USE OVERLAYS IN PHOTOSHOP
As we know photoshop overlays don’t actually need to be installed like actions or presets because they are just image files. Instead, you will have to simply open both image files i.e. overlay and the image that you want to edit and drag that overlay on the top of your photo.
Step 1: Firstly, save your overlays that you have downloaded in a folder you can easily find.
Step 2: Go to Photoshop and open the image you want to edit.
Step 3: From the top Menu bar, select File>Place. Your overlay will automatically appear as a separate layer in your layer Panel and it will be placed on top of your image.
Step 5: Drag and adjust the overlay according to your need around the image.
Step 6: To lock the overlay in certain place, you need to press “Enter”.
Step 7: Now change the Blending Mode in your Layers panel to Screen by clicking the drop-down menu.
Step 8: You can then adjust the layer opacity.
Step 9: Lastly, you can even erase or delete selective parts of the overlay on your image that you don’t want to keep by using Layer Mask.