Yes, you can do exactly what you are describing. In film & TV, this is usually called Virtual Production. Unfortunately, Virtual Production is an umbrella term that can mean lots of things. These days when you say Virtual Production most people think you are talking about using LED screens, but that’s only one “form” of Virtual Production. If you do a YouTube search for “Unreal Virtual Production” you’ll find a decent number of videos showing how to set up something like what you are asking about.
here is one example.
https://www.youtube.com/watch?v=OgxfvtT17CY
-e