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  1. Make a folder that will act as the MDL repository, for example X:\MDL, and put in it the MDL modules that are exported from Substance Designer.
  2. Put the textures needed by the MDL materials in the same repository in their respective subfolder (for example, X:\MDL\MDL_Plywood_02).
  3. Tell V-Ray where the MDL repository is by appending it to the VRAY_MDL_PATH_3DSMAX20XX_x64 environment variable.
  4. Find the directory where Substance Designer keeps its MDL modules (usually C:\Program Files\Allegorithmic\Substance Designer 5\resources\view3d\iray\alg but may differ from version to version) and append its path to the same environment variable, separated by a semi-colon.

In the end, the environment variable should look something like:

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