Prefab confusion

All the documentation so far says that you can create a preab from an object that is in the hierarchy (or scene).

Is it ok to create a prefab by dragging from the mesh asset in the project view to the prefab also contained in the project view?

you can, but that will overwrite the prefab that was there. To make a new prefab, click on the new button, select prefab, and then drag your model to that newly created prefab.

Use Prefab in your Game Here is the tutorial for that . Unity3D Notes: Instantiate Prefab in Your Game Tutorial . Here is demo and code for Prefab instantiate so download and try to undestand i hope u will get the solution …