Say I have this character and I want allow user to select it, so when it s selected I want to show an outline around it.
You can get good results by rendering your outlined object(s) to a texture that is (ideally) the size of your destination framebuffer, then render a framebuffer-sized quad using that texture and have the fragment shader blur or do other image transforms. I have an example here that uses raw WebGL, but you can make a custom ShaderMaterial without too much trouble.