In this article, I explain how I created a Banjo-Kazooie (Nintendo 64) terrain and level material in Godot, with a Visual Shader, importing the terrain created in Blender, that makes use of two texture channels and blends them using the vertex color alpha and vertex colors for details and fake lighting and ambient occlusion.
Prerequisites
Create the level or terrain in Blender first, blending textures with vertex color alpha and optionally painting vertex colors.
gLTF Export Setup
In Blender, export the mesh to gLTF to be able to import it into Godot. Make sure "Use Vertex Color: Active" is set (in Data, Mesh, Vertex Colors):
Why not simply import the .blend file directly into Godot? Because I didn't find a way for it to correctly import the vertex colors.
Godot Visual Shader
It's a pretty simple shader that mixes two textures, where the mix weight comes from the vertex color alpha. Then the shader multiplies the final color with the vertex colors:
I also disabled specularity:
