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As you can see, the head shot doesn't look like it's in the shirt. The text came with the T-Shirt mock-up. I'm trying to see how to correctly place the head shot logo on the shirt to look realistic. Thanks in advance.
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Displacement map is the option you want. Here:
https://creativepro.com/add-realistic-artwork-wrinkled-surface-photoshops-displacement-map/
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Looks like in this template you would double click the layer thumbnail that says "Your design here"
This will open the layer (smart object) in its own window. Hide existing layer and paste your design on a new layer above that.
Close that window and click "yes" to save. Your design should now appear on your shirt.