To create a landscape in UE5, I used SRTM data downloaded from
https://apps.nationalmap.gov/. The source file is a GeoTiff with pixel values not limited to 0-1, where 1 represents only 1 meter of height. Therefore, in typical raster editors like Photoshop, the image will not appear correctly. To set the desired size and convert the GeoTiff to .png for example, it’s better to use Houdini, which has a set of nodes for working with elevation data — Terrain category.
The Houdini setup is pretty simple and has the following output settings: