Hi, I’ve almost finished working on my game-ready model, and now I’m trying to set up a normal map for it. However, when I assign the normal map to the model, I encounter some nasty banding artifacts. This issue occurs only in UE (I also tested it in Marmoset Toolbag, Blender, and Substance Painter). I use a 16-bit normal map, and I’ve tried enabling “Use Full Precision UVs” in the static mesh editor, setting the GBuffer format in project settings to high-precision normals. I am using Normalmap compression in my texture settings, with sRGB turned off. Virtual texture streaming is turned on (because I also use UDIM textures), and the sampler type in the material editor is set to virtual normal. I would be very grateful for any help in solving this problem!
(I set Normal Map intensity to 2 for this image so the artifacts can be more visible)
Might be some lossy compression going on? Your settings seem fine. In the texture asset, you should be able to set lossless compression.

