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I am new to Unity. few days back i have started learning to make games using Unity Engine & I started making a very basic car racing game. In order to add an On-screen SpeedOMeter for my car I imported an image UI so the problem is that i cannot set a source image for my SpeedOMeter UI.I tried using .jpg .png & .psd image files as well....however Im not able to drag and drop the image. Under the list Source Image I already have selected - UISprite from the dropdown list & still Im not able to set source image.can anyone provide me any enter image description heresolution I also have attached a Screenshot for the same.

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Make sure that your image imported as a sprite not a texture. Select your image and in the inspector into import setting chose (sprite and ui.) – klaymen Oct 29 '16 at 22:15

Click on the imported image. You should see a dropdown in the inspector that says "texture". Change it to "sprite and UI" if not already. Now you should be able to change the source image of the blank image to your desired image.

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