How to make sweep work with rotation?

May have to create your own solution.
If your pawn uses sphere collision then no rotation sweep is necessary since a sphere has no concave structures protruding from the main body.
If your pawn uses any other shape then maybe you could do something like adding an Overlap-Only component that rotates ahead of the colliding component by one predictive rotation amount per tick, and reports back if it overlapped anything before the real collider would have hit, and you can handle the same logic as if it was triggered by a Hit.

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