This realistic smoke effect was made by Hirokazu Yokohara.
Japanese 3D Artist Hirokazu Yokohara has demonstrated a cool smoke FX made in Unreal Engine 5. The effect looks very realistic and fully shows the VFX capabilities of Epic Games' recently released next-gen engine. What's more, the smoke is shown to be able to react in real-time to movement. Additionally, the artist used the Niagara Fluids plug-in for UE5 that allows adding smoke, fire, explosions, water, splashes, and many other physically plausible effects to your projects.
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