You can use Unreal Engine's suite of powerful animation tools and editors to create character and object runtime animation systems, rendered cinematic content, and author new animation content directly in the engine.
Skeletal Mesh Animation
With the Skeletal Mesh Animation System, you can create robust animation systems for characters and objects within Unreal Engine. After importing a skinned mesh object as a Skeletal Mesh asset, you can manage its properties and build logic to run dynamic animation content using the Animation Blueprint visual scripting editor.
For more information about the using the Skeletal Animation System to animate characters and objects in unreal engine, see the following documentation:
Sequencer
You can use Sequencer to create and edit staged animation content for game cinematics or traditional animated filmmaking while taking advantage of Unreal Engine's animation and world rendering tools. When creating cinematic content using Sequencer, you can build custom character rigs, using Control Rig to animate characters directly in your scene while simultaneously animating other characters, objects, cameras, and effects.
For more information about using Sequencer to create cinematic animations in Unreal Engine, see the following documentation:
Control Rig
Using the Skeletal Mesh Animation System, imported characters can run animations that have been created in external DCC software. However, using Control Rig, you can build dynamic animation rigs for characters and objects, enabling you to edit existing animations or create new animations within Unreal Engine. Using the Control Rig blueprint graph you can create dynamic rigs that can apply bone transforms to mesh skeletons. These animations can then be played in Sequencer or even baked as standalone assets that can be used in a runtime animation system.
For more information about using Control Rig to animate characters in Unreal Engine, see the following documentation:
Paper 2D
Using Unreal Engine's 2D animation tool set, Paper 2D, you can create traditional 2D characters or levels that are able to leverage the full capabilities of Unreal Engine's world rendering to create dynamic high-fidelity 2D and 2D / 3D hybrid projects. Paper 2D contains a suite of tools and editors that you can use to edit 2D textures, within the framework of Unreal Engine's modern light, world, and physics simulation.
For more information about creating traditional 2D and modern hybrid style projects using Paper 2D in Unreal Engine, see the following documentation: