This article emphasizes on-the-fly procedural creation of content related to the video games industry. We demonstrate the generating and rendering of infinite and deterministic heightmap-based terrain utilizing fractal Brownian noise calculated in real time on a GPU. We take advantage of a thermal erosion algorithm proposed by David Cappola, which greatly improves the level of realism in heightmap generation. In addition, we propose a random tree distribution algorithm that exploits previously generated terrain information. Combined with the natural-looking sky model based on Rayleigh and Mie scattering, we achieved very promising quality results at real-time frame rates. The entire process can be seen in our DirectX10-based demo application.