diff --git a/Gems/SurfaceData/Code/CMakeLists.txt b/Gems/SurfaceData/Code/CMakeLists.txt
index c35da595d6..54363d265e 100644
--- a/Gems/SurfaceData/Code/CMakeLists.txt
+++ b/Gems/SurfaceData/Code/CMakeLists.txt
@@ -70,7 +70,6 @@ if (PAL_TRAIT_BUILD_HOST_TOOLS)
                 AZ::AzToolsFramework
                 Gem::SurfaceData.Static
                 Gem::LmbrCentral.Editor
-                Gem::Terrain
         RUNTIME_DEPENDENCIES
             Gem::LmbrCentral.Editor
     )
@@ -98,11 +97,9 @@ if(PAL_TRAIT_BUILD_TESTS_SUPPORTED)
         BUILD_DEPENDENCIES
             PRIVATE
                 AZ::AzTest
-                AZ::AzToolsFramework
                 Legacy::CryCommon
                 Gem::SurfaceData.Static
                 Gem::LmbrCentral
-                Gem::Terrain
     )
     ly_add_googletest(
         NAME Gem::SurfaceData.Tests
diff --git a/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.cpp b/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.cpp
index 0285ab5ca4..a847da4347 100644
--- a/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.cpp
+++ b/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.cpp
@@ -123,10 +123,7 @@ namespace SurfaceData
 
     void EditorSurfaceDataSystemComponent::GetRegisteredSurfaceTagNames(SurfaceTagNameSet& masks) const
     {
-        for (const auto& tagName : Constants::s_allTagNames)
-        {
-            masks.insert(tagName);
-        }
+        masks.insert(Constants::s_unassignedTagName);
 
         for (const auto& assetPair : m_surfaceTagNameAssets)
         {
diff --git a/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.h b/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.h
index 68f7ea7291..466da8482e 100644
--- a/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.h
+++ b/Gems/SurfaceData/Code/Source/Editor/EditorSurfaceDataSystemComponent.h
@@ -14,7 +14,6 @@
 #include <AzFramework/Asset/AssetCatalogBus.h>
 #include <AzToolsFramework/ToolsComponents/EditorComponentBase.h>
 #include <SurfaceData/SurfaceDataTagProviderRequestBus.h>
-#include <Terrain/TerrainDataConstants.h>
 
 namespace AZ::Data
 {
@@ -23,15 +22,6 @@ namespace AZ::Data
 
 namespace SurfaceData
 {
-    namespace Constants
-    {
-        static const char* s_allTagNames[] = {
-            Constants::s_unassignedTagName,
-            Terrain::Constants::s_terrainHoleTagName,
-            Terrain::Constants::s_terrainTagName,
-        };
-    } //namespace Constants
-
     class EditorSurfaceDataSystemConfig
         : public AZ::ComponentConfig
     {
diff --git a/Gems/SurfaceData/Code/Tests/SurfaceDataTest.cpp b/Gems/SurfaceData/Code/Tests/SurfaceDataTest.cpp
index 23c0a1d4c6..8f4420bcc5 100644
--- a/Gems/SurfaceData/Code/Tests/SurfaceDataTest.cpp
+++ b/Gems/SurfaceData/Code/Tests/SurfaceDataTest.cpp
@@ -23,8 +23,8 @@
 #include <SurfaceDataModule.h>
 #include <SurfaceData/SurfaceDataProviderRequestBus.h>
 #include <SurfaceData/SurfaceDataModifierRequestBus.h>
+#include <SurfaceData/SurfaceTag.h>
 #include <SurfaceData/Utility/SurfaceDataUtility.h>
-#include <Editor/EditorSurfaceDataSystemComponent.h>
 
 struct MockGlobalEnvironment
 {
@@ -281,15 +281,17 @@ public:
 
 TEST_F(SurfaceDataTestApp, SurfaceData_TestRegisteredTags)
 {
+    // Check that only the unassigned tag exists if no other providers are registered.
     AZStd::vector<AZStd::pair<AZ::u32, AZStd::string>> registeredTags = SurfaceData::SurfaceTag::GetRegisteredTags();
 
-    for (const auto& searchTerm : SurfaceData::Constants::s_allTagNames)
-    {
-        ASSERT_TRUE(AZStd::find_if(registeredTags.begin(), registeredTags.end(), [searchTerm](decltype(registeredTags)::value_type pair)
+    const auto& searchTerm = SurfaceData::Constants::s_unassignedTagName;
+
+    ASSERT_TRUE(AZStd::find_if(
+        registeredTags.begin(), registeredTags.end(),
+        [searchTerm](decltype(registeredTags)::value_type pair)
         {
             return pair.second == searchTerm;
         }));
-    }
 }
 
 #if AZ_TRAIT_DISABLE_FAILED_SURFACE_DATA_TESTS
diff --git a/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.cpp b/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.cpp
index 8c75aafa65..b36283bd3c 100644
--- a/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.cpp
+++ b/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.cpp
@@ -15,6 +15,7 @@
 #include <SurfaceData/SurfaceDataSystemRequestBus.h>
 #include <SurfaceData/SurfaceTag.h>
 #include <SurfaceData/Utility/SurfaceDataUtility.h>
+#include <SurfaceData/SurfaceDataTagProviderRequestBus.h>
 
 namespace Terrain
 {
@@ -240,6 +241,8 @@ namespace Terrain
             // Start listening for surface data events
             AZ_Assert((m_providerHandle != SurfaceData::InvalidSurfaceDataRegistryHandle), "Invalid surface data handle");
             SurfaceData::SurfaceDataProviderRequestBus::Handler::BusConnect(m_providerHandle);
+
+            SurfaceData::SurfaceDataTagProviderRequestBus::Handler::BusConnect();
         }
         else if (terrainValidBeforeUpdate && !terrainValidAfterUpdate)
         {
@@ -263,4 +266,10 @@ namespace Terrain
     {
         UpdateTerrainData(dirtyRegion);
     }
+
+    void TerrainSurfaceDataSystemComponent::GetRegisteredSurfaceTagNames(SurfaceData::SurfaceTagNameSet& names) const
+    {
+        names.insert(Constants::s_terrainHoleTagName);
+        names.insert(Constants::s_terrainTagName);
+    }
 }
diff --git a/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.h b/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.h
index d9c7893c77..4d9a5b7481 100644
--- a/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.h
+++ b/Gems/Terrain/Code/Source/Components/TerrainSurfaceDataSystemComponent.h
@@ -13,6 +13,7 @@
 #include <AzFramework/Terrain/TerrainDataRequestBus.h>
 #include <SurfaceData/SurfaceDataModifierRequestBus.h>
 #include <SurfaceData/SurfaceDataProviderRequestBus.h>
+#include <SurfaceData/SurfaceDataTagProviderRequestBus.h>
 
 namespace Terrain
 {
@@ -32,6 +33,7 @@ namespace Terrain
         : public AZ::Component
         , private SurfaceData::SurfaceDataProviderRequestBus::Handler
         , private AzFramework::Terrain::TerrainDataNotificationBus::Handler
+        , private SurfaceData::SurfaceDataTagProviderRequestBus::Handler
     {
         friend class EditorTerrainSurfaceDataSystemComponent;
         TerrainSurfaceDataSystemComponent(const TerrainSurfaceDataSystemConfig&);
@@ -72,5 +74,9 @@ namespace Terrain
 
         AZ::Aabb m_terrainBounds = AZ::Aabb::CreateNull();
         AZStd::atomic_bool m_terrainBoundsIsValid{ false };
+
+        //////////////////////////////////////////////////////////////////////////
+        // SurfaceData::SurfaceDataTagProviderRequestBus
+        void GetRegisteredSurfaceTagNames(SurfaceData::SurfaceTagNameSet& names) const override;
     };
 }