Yūgen's Terrain Authoring Toolkit is a cool new project for Godot 4.x for creating terrain for 3D pixel art style games.  It's free and open source (MIT licensed) and comes with a comprehensive set of tools for creating game terrain.

https://gamefromscratch.com/yugens-terrain-authoring-toolkit-for-godot/
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Gamefromscratch

Yugan's Terrain Authoring Toolkit is a new open-source terrain creation tool for Godot that specializes in 3D pixel art aesthetics. The MIT-licensed toolkit uses marching squares algorithms to enable easy terrain sculpting with features like elevation painting, smoothing, bridging, texture painting (up to 15 custom textures), animated grass placement, and tile-based chunk generation. It supports both smooth and blocky terrain styles, includes collision map generation, and provides debugging tools. The project addresses Godot's lack of built-in terrain systems and is particularly suited for games combining 3D worlds with pixel art or low-poly aesthetics.

A Great New 3D Pixel Art Terrain Tool for Godot! 🚀