Ok, I've managed to do it with a little help from chatGPT :D
Here are the steps:
- After importing the folder with fbx to UE5 there will be also a material created called "FantasyArena2_02"
- Double click on the material.
- In the editor right click on empty space and choose adding "TextureObject"
- Drag the png combined texture you've downloaded onto "Texture" property in details panel of the TextureObject node.
- In the editor right click on empty space and choose adding "TextureSample"
- Add link between the TextureObject and "Tex" in TextureSample
- Add link between "RGBA" on the TextureSample and "BaseColor" on the "FantasyArena2_01" which is already present in the material editor
- Wait a bit and click "Apply" in the material editor (up&left), then click "Save"
- You now have your material ready.
- Add whatever object from the downloaded package into the scene.
- Drag material onto the object.
- Your object should now be colored correctly! :)
Hope it helps anybody using this asset pack :)