Quick answer: GrabComponentAtLocationWithRotation, then SetTargetLocationAndRotation each tick. Plain Grab discards orient.

Pick up an object. Rotate camera. Object stays in fixed orientation instead of following the cursor.

The Fix

BP:
  On Pickup:
    PhysicsHandle → Grab Component At Location With Rotation(
        Component, BoneName=NAME_None,
        Location=GrabLoc, Rotation=GrabRot)

  Tick:
    PhysicsHandle → Set Target Location And Rotation(
        TargetLoc, ControllerRot + LocalOffsetRot)

The 'WithRotation' variant attaches the rotation constraint at grab time. Update both per tick to follow.

Verifying

Pick up. Rotate camera. Object follows orientation. On release: physics takes over.

“WithRotation grab. Per-tick set. Object follows.”

Related Issues

For physics asset trace, see trace channel. For Water buoyancy, see water buoyancy.

WithRotation grab. Object orients.