You can use a Sprite3D too but MeshInstance is better
- Create MeshInstance
- Set Mesh to Quad mesh
- Set New ShaderMaterial
- Attach Shader
in the shader
- change
shader_type canvas_item;
to shader_type spatial;
- change
render_mode blend_mix;
to render_mode blend_mix, unshaded;
- add
uniform sampler2D albedo_texture : hint_albedo;
- add the following function
.
void fragment() {
vec4 result = texture(albedo_texture, UV);
ALBEDO = result.rgb;
ALPHA = result.a;
}