Hi @dichtermut ,
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You can just drag your imported blend model into scene or hierarchy to instantiate it as a Prefab. For best import practice see [Unity - Manual: Importing a model](http://Hi @dichtermut, 1) You can just drag your imported blend model into scene or hierarchy to instantiate it as a Prefab. See: Unity - Manual: Importing a model for best practice. (Yes, the ‘blue box with a black stripe’ is the icon for an imported mesh). Whether you nest the model inside another prefab depends upon use case i.e. whether the model is intended to be treated as part of a larger Prefab object. 2) For info about orientation see: Orientation problem 3) For some considerations regarding use of blender files over fbx see: .blend vs .fbx ). Yes, the ‘blue box with a black stripe’ is the icon for an imported mesh. Whether you nest the model inside another prefab depends upon use case i.e. if you intend to treat the model as part of a larger Prefab object, as it seems you want to.
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Option A is the way to go unless your use case involves working with the mesh data directly e.g. procedural manipulation from script. For info about orientation and Blender → Unity setup see: Orientation problem
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For some considerations regarding use of .blend files over .fbx see: .blend vs .fbx