3d smoke

In HDRP. What is the best way for creating a realistic 3d smoke? That can be viewed from the inside and outside, and also reacts to lighting.

If 3rd party software must be used for creating smoke. What are the free versions?

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Hi. By 3D smoke, I guess you mean volumetric?

You can use volumetric fog for this, either via a custom shadergraph or by using volumetric fog particle output in VFX Graph (to voxelize particles in fog volumes). Bear in mind that volumetric with a good resolution is still very costly for real time.

Otherwise to render smoke in a much more cheaper way, we do have the 6-way lighting mode, which is not exactly volumetric but fakes it generally good enough

Hope this helps.