diff --git a/openpype/settings/defaults/system_settings/applications.json b/openpype/settings/defaults/system_settings/applications.json
index eb3a88ce66..d25e21a66e 100644
--- a/openpype/settings/defaults/system_settings/applications.json
+++ b/openpype/settings/defaults/system_settings/applications.json
@@ -133,7 +133,9 @@
                     "linux": []
                 },
                 "arguments": {
-                    "windows": ["-U MAXScript {OPENPYPE_ROOT}\\openpype\\hosts\\max\\startup\\startup.ms"],
+                    "windows": [
+                        "-U MAXScript {OPENPYPE_ROOT}\\openpype\\hosts\\max\\startup\\startup.ms"
+                    ],
                     "darwin": [],
                     "linux": []
                 },
@@ -361,9 +363,15 @@
                     ]
                 },
                 "arguments": {
-                    "windows": ["--nukeassist"],
-                    "darwin": ["--nukeassist"],
-                    "linux": ["--nukeassist"]
+                    "windows": [
+                        "--nukeassist"
+                    ],
+                    "darwin": [
+                        "--nukeassist"
+                    ],
+                    "linux": [
+                        "--nukeassist"
+                    ]
                 },
                 "environment": {}
             },
@@ -379,9 +387,15 @@
                     ]
                 },
                 "arguments": {
-                    "windows": ["--nukeassist"],
-                    "darwin": ["--nukeassist"],
-                    "linux": ["--nukeassist"]
+                    "windows": [
+                        "--nukeassist"
+                    ],
+                    "darwin": [
+                        "--nukeassist"
+                    ],
+                    "linux": [
+                        "--nukeassist"
+                    ]
                 },
                 "environment": {}
             },
@@ -397,9 +411,15 @@
                     ]
                 },
                 "arguments": {
-                    "windows": ["--nukeassist"],
-                    "darwin": ["--nukeassist"],
-                    "linux": ["--nukeassist"]
+                    "windows": [
+                        "--nukeassist"
+                    ],
+                    "darwin": [
+                        "--nukeassist"
+                    ],
+                    "linux": [
+                        "--nukeassist"
+                    ]
                 },
                 "environment": {}
             },
@@ -415,9 +435,15 @@
                     ]
                 },
                 "arguments": {
-                    "windows": ["--nukeassist"],
-                    "darwin": ["--nukeassist"],
-                    "linux": ["--nukeassist"]
+                    "windows": [
+                        "--nukeassist"
+                    ],
+                    "darwin": [
+                        "--nukeassist"
+                    ],
+                    "linux": [
+                        "--nukeassist"
+                    ]
                 },
                 "environment": {}
             },
@@ -433,9 +459,15 @@
                     ]
                 },
                 "arguments": {
-                    "windows": ["--nukeassist"],
-                    "darwin": ["--nukeassist"],
-                    "linux": ["--nukeassist"]
+                    "windows": [
+                        "--nukeassist"
+                    ],
+                    "darwin": [
+                        "--nukeassist"
+                    ],
+                    "linux": [
+                        "--nukeassist"
+                    ]
                 },
                 "environment": {}
             },
@@ -449,9 +481,15 @@
                     "linux": []
                 },
                 "arguments": {
-                    "windows": ["--nukeassist"],
-                    "darwin": ["--nukeassist"],
-                    "linux": ["--nukeassist"]
+                    "windows": [
+                        "--nukeassist"
+                    ],
+                    "darwin": [
+                        "--nukeassist"
+                    ],
+                    "linux": [
+                        "--nukeassist"
+                    ]
                 },
                 "environment": {}
             },
@@ -1450,21 +1488,45 @@
         "label": "Unreal Editor",
         "icon": "{}/app_icons/ue4.png",
         "host_name": "unreal",
-        "environment": {},
+        "environment": {
+            "UE_PYTHONPATH": "{PYTHONPATH}"
+        },
         "variants": {
-            "4-27": {
-                "use_python_2": false,
-                "environment": {}
-            },
             "5-0": {
                 "use_python_2": false,
-                "environment": {
-                    "UE_PYTHONPATH": "{PYTHONPATH}"
-                }
+                "executables": {
+                    "windows": [
+                        "C:\\Program Files\\Epic Games\\UE_5.0\\Engine\\Binaries\\Win64\\UnrealEditor.exe"
+                    ],
+                    "darwin": [],
+                    "linux": []
+                },
+                "arguments": {
+                    "windows": [],
+                    "darwin": [],
+                    "linux": []
+                },
+                "environment": {}
+            },
+            "5-1": {
+                "use_python_2": false,
+                "executables": {
+                    "windows": [
+                        "C:\\Program Files\\Epic Games\\UE_5.1\\Engine\\Binaries\\Win64\\UnrealEditor.exe"
+                    ],
+                    "darwin": [],
+                    "linux": []
+                },
+                "arguments": {
+                    "windows": [],
+                    "darwin": [],
+                    "linux": []
+                },
+                "environment": {}
             },
             "__dynamic_keys_labels__": {
-                "4-27": "4.27",
-                "5-0": "5.0"
+                "5-1": "Unreal 5.1",
+                "5-0": "Unreal 5.0"
             }
         }
     },
diff --git a/openpype/settings/entities/schemas/system_schema/host_settings/schema_unreal.json b/openpype/settings/entities/schemas/system_schema/host_settings/schema_unreal.json
index 133d6c9eaf..df5ec0e6fa 100644
--- a/openpype/settings/entities/schemas/system_schema/host_settings/schema_unreal.json
+++ b/openpype/settings/entities/schemas/system_schema/host_settings/schema_unreal.json
@@ -30,12 +30,7 @@
                 "children": [
                     {
                         "type": "schema_template",
-                        "name": "template_host_variant_items",
-                        "skip_paths": [
-                            "executables",
-                            "separator",
-                            "arguments"
-                        ]
+                        "name": "template_host_variant_items"
                     }
                 ]
             }