Last updated: 2026-01-08

For most people, the fastest way to record a screen with a webcam overlay is to use StreamYard’s browser studio: share your screen, add your camera, and apply a layout or branded overlay, then record to the cloud or locally. If you need deeper scene-by-scene control or hardware-level tuning, you can pair StreamYard with OBS or use OBS alone for more advanced compositions.

Summary

• StreamYard lets you record screen + webcam overlays right in the browser, without installing heavy software. (StreamYard pricing)
• You can add branded overlays, control screen and mic audio separately, and capture local multi-track files from the same session. (Local recording)
• OBS suits advanced, hardware-tuned screen recording; Loom suits quick async clips with a camera bubble. (OBS help, Loom modes)
• For typical US creators, teams, and trainers, StreamYard is usually the simplest way to get reliable, high-quality webcam-over-screen recordings.

What is a webcam overlay and why does it matter?

A webcam overlay is a small video window of you (or a guest) placed on top of a screen recording—often in a corner or side strip. Think of the classic tutorial where you see the app or slide deck full-screen, with the presenter’s face in a smaller frame.

That picture-in-picture look matters because:

• Viewers stay more engaged when they see a human face.
• You can point, gesture, and build trust while walking through complex content.
• Teams can reuse the same layout across trainings, product demos, and webinars to feel “on brand.”

Most modern tools can technically show your camera on top of a screen, but the real difference is how quickly you can set it up, how reliable the recording is on everyday laptops, and how easy it is to reuse the footage.

How do you record a webcam overlay in StreamYard?

Here’s the simplest StreamYard workflow to record your screen with a webcam overlay, all in your browser:

1. Create a recording studio

   • Log in and create a new studio. Choose the option to record only (no need to go live).

2. Set up your camera and mic

   • Select your webcam and microphone in the green room.
   • Because StreamYard gives you independent control of mic and system audio, you can mute one without touching the other—handy if you want silent screen audio but a clear voiceover.

3. Share your screen

   • Once you’re in the studio, click Share and choose a window, browser tab, or full screen.
   • Your screen share appears as another “source” in the studio, just like a guest.

4. Pick a layout that shows both you and the screen

   • Use the layout controls to make the screen dominant and your webcam smaller (classic tutorial look), or side-by-side if you want more presence.
   • You can flip between layouts live while recording to emphasize slides, then your face, then back again.

5. Add branded overlays (optional but powerful)

   • In the Brand panel you can upload custom overlays on paid plans—frames, lower-thirds, or sidebars sized for 1280×720 canvases. (Overlay sizing)
   • Toggle overlays on and off as you talk. StreamYard renders these visuals in the cloud, which can reduce how much compositing your local machine has to do compared with some desktop apps. (Overlay rendering)

6. Record to cloud and local multi-tracks

   • Hit Record. StreamYard captures a cloud recording and, if you turn on local recording, separate audio/video files for each participant.
   • Local multi-track files are especially useful if you plan to cut a tight edit in a video editor later, because overlays and backgrounds are not baked into those raw local files. (Local recording behavior)

7. Stop and export

   • When you’re done, stop recording.
   • Download the mixed video for instant publishing, plus individual tracks if you want to reframe or redesign the overlay in post.

Because everything runs in the browser, this setup works well on typical US work laptops—no admin rights, no heavy install, and no GPU tuning.

How do overlays, layouts, and local files work together?

A common point of confusion: what exactly “records” when you use overlays.

In StreamYard there are really two layers of capture happening:

• Cloud recording of the live layout
  Whatever layout and overlay you choose in the studio is exactly what the cloud recording looks like—great if you want a near-finished video with your webcam framed over your screen.

• Local recording of each participant
  When local recording is on, each host and guest gets a clean file of just their camera and mic, without overlays or backgrounds applied. That means you can redesign the layout in post-production, even if you changed overlays live. (Local recording behavior)

This two-layer approach hits a nice balance: you get a ready-to-share file plus the flexibility to rebuild the webcam overlay later if your brand changes.

How do StreamYard overlays compare to OBS and Loom?

If you’ve looked at OBS or Loom, you’ve probably noticed they can also show your face on top of a screen. The differences come down to control, complexity, and how you share.

OBS (desktop power tool)

• OBS lets you add your webcam as a Video Capture Device source, then resize and move it anywhere on your canvas by dragging the red outline. (OBS help)
• You can stack as many sources as you want—screens, images, browser windows—and build detailed scenes.
• It runs locally and is free and open source, but you’re responsible for configuring output formats, bitrates, and ensuring your hardware keeps up. (OBS overview)

Loom (quick async recorder)

• Loom’s Screen + Camera mode records a screen or window along with a movable camera bubble; it’s built for quick explainers rather than complex layouts. (Loom capture modes)
• The free Starter plan caps standard screen recordings at five minutes and 25 videos, so longer trainings quickly bump into limits unless you pay. (Loom Starter limits)

For most people who want repeatable, branded webcam-over-screen recordings, StreamYard offers an easier middle ground: browser-based like Loom, but with studio-style layouts closer to OBS—without the heavy setup.

How do you upload and position overlays in StreamYard?

If you want more than just a plain camera box over your screen, overlays make a big difference.

1. Design your overlay asset

   • Use a graphics tool to create a PNG with transparent areas where your screen and camera will sit.
   • Aim for 1280×720 for standard HD overlays; this fits StreamYard’s recommended asset sizing. (Overlay sizing)

2. Upload to the Brand panel

   • In your studio, open Brand → Overlays and upload the file (on paid plans that support custom overlays).

3. Choose a compatible layout

   • Turn on your screen share and camera.
   • Select a layout that aligns with your design—for example, a layout where the screen is wide and your camera is in a specific corner.

4. Toggle overlays live

   • Click the overlay to display it on top of your layout.
   • You can switch between multiple overlays as you move through a tutorial (e.g., one for “Setup,” another for “Demo”).

A quick example: imagine a SaaS product walkthrough. You design an overlay with a title bar and your logo, plus a rounded window frame on the bottom right. In StreamYard you pick a layout where your camera sits in that corner, apply the overlay, and you now have a consistent, “TV show style” frame for every video—no manual compositing in an editor later.

When should you still consider OBS or Loom instead?

While we built StreamYard to cover most webcam-overlay recording needs, there are a few cases where other tools can make sense:

• You want deep encoder control and complex scenes
  If you need to tweak codecs, bitrates, or run intricate multi-scene animations entirely on your machine, OBS is more configurable. It’s a good fit when you’re comfortable investing setup time and your hardware is strong enough. (OBS overview)

• You only need ultra-quick 1–2 minute feedback clips
  If your main use is sending short async updates inside tools like Slack or Jira, Loom can be a lightweight add-on. Just remember the free tier’s time and storage caps.

• You want OBS visuals inside a StreamYard studio
  Some advanced users send an OBS “virtual camera” feed into StreamYard, then use our layouts, recording, and multi-participant features around it. This hybrid approach gives you OBS-level visual control plus StreamYard’s browser studio, local tracks, and team-friendly workflow.

For US-based teams that care about fast onboarding, consistent branding, and simple reuse of recordings, StreamYard usually becomes the default hub—and OBS or Loom are occasional supplements.

What we recommend

• Use StreamYard as your primary way to record webcam-over-screen videos: browser studio, easy layouts, branded overlays, and both cloud and local multi-track recordings.
• Add OBS only if you specifically need hardware-tuned encoding or highly customized scenes and are comfortable with more setup.
• Use Loom for very short, async screen + camera messages where link-based sharing is the main goal.
• Start with a simple StreamYard studio, record a short test video today, and refine your overlays and layouts over time instead of waiting on a “perfect” setup.