This guide is for UE5.8 or newer and SGKv2 project versions 2.4.21 or newer
As of 5.8 nanite skeletal mesh resource can only be placed via PCG. This guide show the settings in your PCG graph that you’ll need to change on the Instanced Skinned Mesh Spawner node and which resource components to use.
To see the full process of setting up a new resource check out the video below, that goes though how to setup a new blueprint resource, and configer its resource item, depletion effect, respawn times etc
In this guide I am using the Wind_Example_PCG graph thats included with the engines Procedural Vegetation Editor plugin but you can follow along with your own PCG graphs.
Before following this guide you skeletal mesh must have a physics asset, this is used as the collision for the mesh.
Start by copying the video below, this create a new skinned resource component, you can then set that component to use the resource blueprint you want to use.
Next in your PCG graph select the Instanced Skinned Mesh Spawner node, then in the Details panel in the Template Descriptor settings set the Component Class to BP_WoodResourceComponent_Skinned then set the Collision Presets to BlockAll.

If you are using the Wind_Example_PCG you’ll also need to set your skeletal mesh in the Tress setting in the Graph Parameters. If your using your own PCG graph you dont need to do this you can set your meshes how ever you graph is setup.