Struggling with PBR workflow, need help please

I am very new to PBR and I am really feeling lost right now. Kinda also a little bit desperate because this is a test for a job. The part where I am struggling right now is for the texturing part. I downloaded many free model to see how pros do, and I am feeling more lost.
The model is finished and pretty decent in my humble opinion but it is the final part which is the texture that I am really struggling with.

  • How to bake texture file so that it won’t be too heavy in size and still have good quality
  • It is required to have AO bake file, I do not understand how to use it. Where to put it in the final render? with the base color or something?

Tried to find tutorial on youtube but they focus more on hi poly or for game engine stuff. I am just so confused

I know it is maybe too late. Here are the answers.
1)If by “size” of the texture you mean the texture file size on the disk, it isnt determined by baking options, but by texture resolution in pixels and a format the texture is saved as. *.png and *.jpg formats have built in compression, *.bmp does not. However, keep in mind that file compression doesnt increase rendering performance, as texture will be uncompressed before going into RAM or video memory. *.jpg file will be as big as equal resolution *.bmp file from a videocard’s perspective
2)Usually, ambient occlusion texture is combined (multiplied by) with base color texture. It is not entirely correct from PBR standpoint but it works. You can combine them either in 2d editor using layer options or in Blender using shader nodes (Color - MixRGB). The second option is preferable as it is non-destructive and you may want to keep your color and AO textures as separate files. Some engines (Unity for example, with its Standard shaders), allow using AO maps as special Occlusion input. In this case, the AO texture will only affect indirect lighting, giving more realistic result. Not an option in Blender, sadly

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THank you so much for your reply.