UDK supports all modern per-pixel lighting and rendering techniques, including normal mapped, parameterized Phong lighting; custom artist-controlled per material lighting models including anisotropic effects; virtual displacement mapping; light attenuation functions; pre-computed shadow masks and directional light maps.
UDK provides volumetric environmental effects that integrate seamlessly into any environment. Camera, volume and opaque object interactions are all handled per-pixel. Worlds created with UDK can easily feature multi-layered, global fog height and fog volumes of multiple densities.
UDK also supports a high-performance texture streaming system.
Additionally, UDK’s scalability settings ensure your game will play on a wide range of PC configurations.
Unreal Engine 3 supports Direct3D 9 and Direct3D 11. Direct3D 11 allows the utilization of new hardware features like tessellation. This implementation supports flat and smooth tessellation (PN-triangles). The tessellation level is adjustable and view dependent. The tessellated mesh can be further manipulated in the material editor for static or animated displacement effects.

