How to make translucent lit?

Here is an example I have set up to use as a deferred decal that works with translucency, and acts as a masked/translucent decal actor like a rusty stain.

Deferred Decal - Material Set Up

Here you can see I have connected my texture samples alpha channel to the Opacity input and assigned a constant value for the Roughness.

Here is what the decal looks applied to a surface.

Let me know if you have further questions.

Cheers,