Drag and drop images onto geometry, as a material texture or decal. With an HDR image, assign it to an environment.
Drag an image file onto an object in the Render Window. This opens the Texture Drag & Drop dialog.

In the Texture Drag & Drop dialog, select material attributes for the new image texture.
If you select Add Decal, the material attributes will be disabled.
With Add Decal not selected, from the drop-down list and choose Edit Material or Edit Object Only.
Both options are only available when using the dropped image as a material texture and if the material is NOT assigned to multiple objects.
Drag an image file onto an object in the Render Window.
In the Texture Drag and Drop dialog, select Add Decal.

From the drop-down list, select Add to Object or Add to Material.
Add to Object is only available if the material is assigned to multiple objects.
A Plastic material, named Decal, with a planar projection of the diffuse texture and a multipass material are created. If a multipass material is already assigned to the geometry, this multipass material is used. VRED switches automatically to Texturing Mode. A manipulator appears on the image to resize and position the decal.
Hold the Shift key and drag the manipulator to rotate, scale, or translate the texture. Dragging the blue scale control adjusts the depth limit of the texture. The default Z value of the projection size is two hundred. Having a value other than zero, ensures the decal only appears on one side of the object.
Press T or ESC to exit the manipulator.