An overview of using Capsule Shadows for indirect and direct shadowing using a Physics Asset.
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As of Unreal Engine 4.11 and later,
Capsule Shadows
can be used to enable support for soft shadow casting for Skeletal Meshes by using a capsule representation of your character made
from a Physics Asset. The soft shadows serve to ground the character in indirectly lit areas and give soft shadows in directly lit areas.