Normal Map and Ray Distance

I have a “ground plane” mesh I set up with a lot of sculpting that is the base on top of which my buildings sit as well as landscaping. It has a pretty complex geometry due to my overuse of Dyntopo and I can save about 5000 triangles if I make it a simpler shape with a normal map.

With default settings the map looks like this:

With Ray Distance set to 0.15 it looks like this:

The second is closer to the original shape, but the edges start to peel away. Is there any way to fix that?

Also generally not very happy with the rendered result. Perhaps this is not the best use of a normal map.

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