I have managed to reproduce this issue in 4.18.3 and 4.19.2.

In order to make the Capsule Shadow disappear:

  • Indirect Lighting Cache must be used (Volumetric Lightmap works)
  • Skylight must be set to 'Movable'
  • Skylight Light source type must be set to Specified Cubemap
  • Skylight Lower Hemisphere Color must be set to a bright color (set to white in sample project; using a dark color works as intended)

Per Licensee:

Managed to reproduce a bug of having Indirect Capsule Shadows Disappear because of the Skylight's Lower hemisphere values being too bright when using the old Volume Lighting Method Sparse.

If using the newer Volume Lightmaps they work correctly. (we can't use the newer ones because we have to stream, and last we were told they don't support Streaming yet?)

Sorry, don't know if this is an intended behavior, or pre - 4.19.

Steps to Reproduce
  1. Open attached project
  2. Select Skylight, Set Lower Hemisphere Is Solid Color = True

Result: Capsule shadows on skeletal mesh disappear

Expected: Capsule shadows will function 

Have Comments or More Details?

There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-58925 in the post.

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Won't Fix
ComponentUE - Rendering
Affects Versions4.
CreatedMay 9, 2018
ResolvedAug 18, 2021
UpdatedAug 18, 2021