Object falling because of gravity and penetrating another object

Object A falling positioned at (0,20,0) and Object B placed at (0,0,0)
A is a box collider and B is mesh collider
Physics material for both have bounciness 1.
Gravity (0,-9.8,0) applied on A, B doesn’t uses gravity
Now A falls through B and doesn’t stop. The collision happens but there is no bouncing happening.

What do you mean “gravity -9.8 applied on A”? Unless you dig into the physics settings, a rigidbody falls w/o you doing anything special. If a script is moving the transform, based on a gravity var, the object is technically micro-teleporting, and will go through anything. Collisions happen when you let the physics engine do the work.

You can use the collision detection by setting it as continuous dynamic to handle faster object. This won’t make the object penetrate each other