MINECRAFT: Is it possible to run shaders and mods at the same time?

I've been playing around with shaders today to make my game look wonderful.

I've also come across some cool mods, so I wanted to add those into my game as well…

I may be doing something wrong, but it seems I can only pick one or the other; either plain looking Minecraft with mods or a pretty looking Minecraft with no mods.

I've searched online and see it is possible, but I can't seem to find steps.

For example, I'm using Sonic Ether's Unbelievable Shaders and the Hit Splat Damage Indicator mod.

Thanks!

Added (1). I have the mod in the mod folder and the shaders in the shader folder, just incase someone asks if I have them in their respective folders.

Yes you can, however a lot of mods have incompatibilities. Better then wolves, for example, doesn't work with tons of mods. It's best to stick with Forge mods and Forge - compatible mods.