Many thanks for all the replies, I wasn't aware of the tiling thing so I need to check it out more. I already kitbashed it with cloning and keeping the original size, here is the result. Please feel free to suggest me other than tiling what else can be done to improve the terrain.

https://www.youtube.com/watch?v=2fVhyjU9JCA

Even with an 8k texture, you will get a blurred result when zooming in if the terrain is large and the texture has to cover the whole terrain. 

iClone's terrain system has four layers and uses tiling, which is the only way to get decent results in close-up. Another way is the divide the terrain in smaller sections which can then each have a hi-res texture.

I believe some users here use Megascan so they may be able to advise. 

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Try increasing your 'Tiling' to 10 (or even 30) - make sure Difffuse is selected (you would normally scale all parameters together).  I find when I use 'external' textures I usually need to increase the tiling to scale appropriately to iClone environment.

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I mentioned its on 4k already but still this issue

There is a Preference setting that determines the texture resolution in the view port.

I also notice that the material seems incomplete as there is only a texture in the Diffuse channel. Usually, there should at least be a texture for the Normal/Bump channel. 

In general, I believe you will get better results with the PBR shader. Currently, it seems to be set to Traditional.

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Greetings, hope you are all well. I have this issue with most of the megascan items i import even with 8k textures I get this very bad stretchy texture inside Iclone 8. Is there any solution to fix it ? I have my preference on 16x anisotropic filtering and 4k texture size and quality on High. I am using an RTX 3060 gpu.