Can't drag assets from Project folder to Hierarchy/Scene

I’ve looked around and haven’t found any answers. Latest Unity version. I’ve tried restarting. Even reinstalling.

I’m trying to drag a PSD onto the Hierachy and it won’t work. My cursor flashes between the regular one and the circle with a cross through it.

If it’s any help, I’m using a Surface Pro with Windows 8.1 Pro

You cannot drag a PSD into the Hierarchy. The Hierarchy can only contain GameObjects. If you want your PSD to be displayed, in the Hierarchy, you have to put some game object with a mesh in the Hierarchy like a Quad, Plane, or Cube. Then you will need to create a material in your Project folder that uses your PSD and put that texture on the game object with the mesh.

Another option is to Game Object > Create Other > GUITexture. Then you can drag your PSD to the ‘texture’ variable and set the PixelInset values.

I think you’re dropping the image into an empty universe.

You need to create some surfaces like mesh/quad for the images to apply to.