Does envato allow images from pixabay to used on one’s project?

Does envato allow authors to use from images from https://pixabay.com/

?

For the demo yes, distributed with the item package, no

Do I have to provide any citations or notes to envato or customers?

You should link to where users can download the image using the item documentation/description

Thank you for your response. This what I intend doing.

  1. Use placeholder for download items
  2. Use actual images in the preview
  3. Create path on my server where I will save all images used according to their folders.
  4. Add a demo importer in installation process that lets users import demo images.

Is this okay? It would be a bit hassle listing all the images and the links individually for the users to download

You can’t do point 4 that’s redistributing content that you don’t own (regardless of you having first stored it on your server).