Collison issue

So I’m prototyping this pickup system. Right now when I get close to the mesh I get a popup saying I can pick it up and when I press e the mesh gets attached to the player’s hand. when I press e again it gets detached. This all works when I have no collision enabled on the mesh. now I want to let the mesh fall to the ground when I drop it. So I turned on simulate physics and went with the default collision. when I pick it up the player’s movement gets all messed up.
I Tried to mess around with the different modes and some of them work but the item won’t drop to the ground. By some modes

the mesh just falls thru other meshes and some also mess up my movement. How can I fix this?

why not on pickup disable physics and collision or have the collision response to pawn be overlap. that way your pickup and your character wont be fighting which is causing your movement issues. when you drop the item you can then just re-enable physics.

Nevermind i fixed it. Had generate overlap event on.

Thanks, I looked into a similar thing before posting but I couldn’t figure it out now I look a bit deeper and found the solution. the only thing right now the interaction notice keeps displaying