Semitransparent/blending alpha channel

I would like to use blending/semitransparent alpha from TGA file, but as you can see on screenshots, the way how it is rendered in final version is just wrong. What should I set correctly to have same quality as in Photoshop?

- in PS
- in UE4, texture editor
- in UE4, sprite editor
- in UE4, render in editor

Thanks!

you are using a material with the masked blend mode which will never give you semitransparent pixels. you should look into using a different blend mode like translucent for your issue. i have not worked with paper sprites yet, but it might cause other issues for you.