The Chaos Physics system—and destruction in particular—has seen many changes in 5.4.
Advancements developed for Fortnite, UEFN MetaHumans with cloth, and more now enable more realistic, performant, and engaging experiences for players.
This talk explores some of our new features and improvements coming to physics in Unreal Engine, including how we achieved dynamic destruction in a huge sandbox environment; building a pipeline for creating high-fidelity clothing for your characters; and putting together a new debugging framework for physics scenes and improved runtime performance and memory usage to allow for more dynamic and expressive simulation at larger scales.
https://dev.epicgames.com/community/learning/talks-and-demos/yjXj/unreal-engine-using-chaos-physics-for-large-scale-and-high-fidelity-scenes-unreal-fest-2024