Making normal edges shaded correctly

I have a problem - I want to use technique common in game development - creating normal edge atlas and mapping it on the model to get smooth looking edges, but I have problem with shading, it’s all over the place, direction go as the uv is rotated and I can’t get smooth results at all.

How do I get smooth edges, what I’m missing?

Hey, @Rytelier. Can you post a screenshot of your material node setup? It looks like you have some bump/normal mapping issues with your material.