Let's say I have a layer with color and another layer with texture over it. That top layer has a blending option "Overlay". How do I rasterize that top layer, but keep the overlay effect?
You can select the layers you’d like to merge, and choose
Merge Layers (or press
⌘E). Or, you could turn the layers into a Smart Object, which would maintain the ability to edit in the future.
The great news is that you don’t need to merge the layers. Choosing a group blending mode of
Normal will composite all child layers into a single buffer, maintaining blending modes, but contain them to the group.
This works differently to
Pass Through, which lets layers blend using their blending modes with layers outside the group.
Here’s an example with the group set to
And the same example, but with the group set to
If that’s not what you’re after, you can probably set up clipping, masking or blend modes to give the desired result. Here’s the same example, with the color block clipped to the image.
In the case above, you don’t actually need the group.
Pretty much anything you could want is possible, using a combination of techniques.