Turn On Mist Bound Shaders in Your Game
Mist Bound Shaders is a shader pack, so it needs a shader loader such as Iris or OptiFine. It does not go in the resource packs list, and it does nothing until the loader activates it.
Put the pack in the right folder
1. Launch Minecraft with your shader loader active and reach the main menu.
2. Open Options > Video Settings > Shader Packs. Iris also has a shader button in its own video settings screen.
3. Click the button that opens the shader pack folder. This creates the correct shaderpacks folder if it does not already exist.
4. Drop the Mist Bound Shaders file into that folder. Leave it as the zip you have. Do not unpack it.
5. Return to the game window. The pack should now appear in the list.
Activate it and confirm it works
1. Click Mist Bound Shaders in the list and press Done or Apply.
2. A short freeze is normal the first time.
3. Load a world and look at a torch, a lantern or a pool of water. You should see a soft glow around light sources and reflections on the water surface.
If the pack does not show up, check whether you put it in resourcepacks by mistake. That is the most common error. Move it into shaderpacks and reopen the menu.