Hi there! I'll be honest and say that I have no idea... I mean, the terrain will generate fine in a physics enabled world as it doesn't actually create instances and is all drawn using arrays... BUT, even though it will "work" it won't generate fixtures for collisions and things if you require them. You could probably do this yourself based on the density map or the polygon array, but it's not something I think would be easy to impliment. So, yeah, while the asset will work, I think converting it into any type of physical system would be very difficult. Thanks for the interest!