How can I create a terrain that forms around a static mesh, rather than through it?

Tracing can be done like so:

  • before we add an instance, you fire a box trace down (or any other direction that you need)

  • if trace returns True, we don’t add an instance, something was in the way

Image from Gyazo

Above, I’ve added Margin to control how closely to the shape instances are added. It can be done better, too. Treat this as a quick proof of concept, nothing else.