@metatutor
Unreal Engine 5.6 includes a set of tools for simulating 2D and 3D fluid effects in real time. These systems use physically-based simulation methods to produce realistic effects for things such as fire, smoke, clouds, rivers, splashes, and waves breaking on a beach.
The toolset is designed to be artist-friendly and an open platform for experimentation by utilizing simulation stages, reusable modules, and robust Data Interfaces.
https://dev.epicgames.com/documentation/en-us/unreal-engine/fluid-simulation-in-unreal-engine---overview