Can I use unreal engine on 4GB Ram and Intel 5500HD Graphics Card ?Does it face any issue?

Development Platform & Builds
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If we go by what Epic recommends (A new, community-hosted Unreal Engine Wiki - Announcements - Epic Developer Community Forums), you would need more RAM and a dedicated GPU.

BUT, it does state on its FAQ that “UE4 will run on desktops and laptops below these recommendations, but performance may be limited”, so you could just download it anyway and play around with the settings to try and make it run on your machine.

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Can I use unreal engine on 4GB Ram and Intel 5500HD Graphics Card ?Does it face any issue ?

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It seems Epic Games, creator of the Unreal Engine, has a number of versions of the Unreal Engine and some games will work with this setup and others will experience issues.