Ok everyone, I didn’t really see an answer to this… Thread necro or otherwise I figured this needs to be answered (since it stumped me for a few days as well).
The answer is painfully simple:
[I’m going to assume you’ve added your assets to the scene.]
- Add your physics assets to the sequence editor
- It is recommended to remove the Transform track, but not required
- Make sure “Simulate Physics” is turned on for the asset(s)
- [This is the part everyone has been missing:] Go to the “Play Level” menu at the top of the screen. Click the “Play Mode and Settings” button (3 dots) and select “Simulation”.
- Press play. While that is running, run your sequence.
I like to use a single keyframe on the Transform with physics disabled at frame 0 and enabled at frame 1, so that the objects can reset position each time the sequence is looped. Helpful, but again not required. This also doesn’t work if you want to start the sequence with things moving. (Honestly at that point I would set the start frame earlier than you actually want, and crop it down later when you bake or export.)
Here is a helpful video on the subject:
(243) [25] [Tutorial] [Short] Simulating Physics in Sequencer | Unreal Engine 5 - YouTube