Overlay Material not working on Static Meshes

I’ve created a simple overlay material to highlight selected meshes, but for some reason it is not applying in static meshes. If I test the same material with a Skeletal Mesh (even if I convert the static one I have just so it turns into a skeletal) the material works as intended, but when I apply it on a static mesh it doesn’t do anything.
I have tested with multiple simple static meshes, both default and from packs.
I also have tested just using the material I wanted to use as overlay as regular material for the mesh and it renders as expected. What could be the cause for it? I’m using the 5.3 engine

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Hi, I also encountered this issue. It looks like Overlay Materials don’t work with Nanite. Try testing it on a static mesh with Nanite disabled