diff --git a/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Debug/TraceRecorder.h b/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Debug/TraceRecorder.h
index acc9d804bf..a4dba9229e 100644
--- a/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Debug/TraceRecorder.h
+++ b/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Debug/TraceRecorder.h
@@ -13,20 +13,24 @@
 #pragma once
 
 #include <AzCore/Debug/TraceMessageBus.h>
+#include <AzCore/std/containers/list.h>
 #include <AzCore/std/string/string.h>
 
 namespace AtomToolsFramework
 {
     // Records all TraceMessageBus activity to a string
-    class TraceRecorder
-        : private AZ::Debug::TraceMessageBus::Handler
+    class TraceRecorder : private AZ::Debug::TraceMessageBus::Handler
     {
     public:
         AZ_TYPE_INFO(AtomToolsFramework::TraceRecorder, "{7B49AFD0-D0AB-4CB7-A4B5-6D88D30DCBFD}");
 
-        TraceRecorder();
+        TraceRecorder(size_t maxMessageCount = std::numeric_limits<size_t>::max());
         ~TraceRecorder();
 
+        //! Get the combined output of all messages
+        AZStd::string GetDump() const;
+
+    private:
         //////////////////////////////////////////////////////////////////////////
         // AZ::Debug::TraceMessageBus::Handler overrides...
         bool OnAssert(const char* /*message*/) override;
@@ -36,6 +40,7 @@ namespace AtomToolsFramework
         bool OnPrintf(const char* /*window*/, const char* /*message*/) override;
         //////////////////////////////////////////////////////////////////////////
 
-        AZStd::string m_messageSink;
+        size_t m_maxMessageCount = std::numeric_limits<size_t>::max();
+        AZStd::list<AZStd::string> m_messages;
     };
 } // namespace AtomToolsFramework
diff --git a/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Debug/TraceRecorder.cpp b/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Debug/TraceRecorder.cpp
index 3b22c16dcc..e08dd3e48a 100644
--- a/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Debug/TraceRecorder.cpp
+++ b/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Debug/TraceRecorder.cpp
@@ -11,10 +11,12 @@
  */
 
 #include <AtomToolsFramework/Debug/TraceRecorder.h>
+#include <AzCore/StringFunc/StringFunc.h>
 
 namespace AtomToolsFramework
 {
-    TraceRecorder::TraceRecorder()
+    TraceRecorder::TraceRecorder(size_t maxMessageCount)
+        : m_maxMessageCount(maxMessageCount)
     {
         AZ::Debug::TraceMessageBus::Handler::BusConnect();
     }
@@ -24,42 +26,55 @@ namespace AtomToolsFramework
         AZ::Debug::TraceMessageBus::Handler::BusDisconnect();
     }
 
+    AZStd::string TraceRecorder::GetDump() const
+    {
+        AZStd::string dump;
+        AZ::StringFunc::Join(dump, m_messages.begin(), m_messages.end(), "\n");
+        return dump;
+    }
+
     bool TraceRecorder::OnAssert(const char* message)
     {
-        m_messageSink += "Assert: ";
-        m_messageSink += message;
-        m_messageSink += "\n";
+        if (m_messages.size() < m_maxMessageCount)
+        {
+            m_messages.push_back(AZStd::string::format("Assert: %s", message));
+        }
         return false;
     }
 
     bool TraceRecorder::OnException(const char* message)
     {
-        m_messageSink += "Exception: ";
-        m_messageSink += message;
-        m_messageSink += "\n";
+        if (m_messages.size() < m_maxMessageCount)
+        {
+            m_messages.push_back(AZStd::string::format("Exception: %s", message));
+        }
         return false;
     }
 
     bool TraceRecorder::OnError(const char* /*window*/, const char* message)
     {
-        m_messageSink += "Error: ";
-        m_messageSink += message;
-        m_messageSink += "\n";
+        if (m_messages.size() < m_maxMessageCount)
+        {
+            m_messages.push_back(AZStd::string::format("Error: %s", message));
+        }
         return false;
     }
 
     bool TraceRecorder::OnWarning(const char* /*window*/, const char* message)
     {
-        m_messageSink += "Warning: ";
-        m_messageSink += message;
-        m_messageSink += "\n";
+        if (m_messages.size() < m_maxMessageCount)
+        {
+            m_messages.push_back(AZStd::string::format("Warning: %s", message));
+        }
         return false;
     }
 
     bool TraceRecorder::OnPrintf(const char* /*window*/, const char* message)
     {
-        m_messageSink += message;
-        m_messageSink += "\n";
+        if (m_messages.size() < m_maxMessageCount)
+        {
+            m_messages.push_back(AZStd::string::format("%s", message));
+        }
         return false;
     }
 
diff --git a/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.cpp b/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.cpp
index 7faeca3f27..2fd1aac211 100644
--- a/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.cpp
+++ b/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.cpp
@@ -209,7 +209,7 @@ namespace MaterialEditor
                 QString("Would you like to reopen the document:\n%1?").arg(documentPath.c_str()),
                 QMessageBox::Yes | QMessageBox::No) == QMessageBox::Yes)
             {
-                AtomToolsFramework::TraceRecorder traceRecorder;
+                AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
                 bool openResult = false;
                 MaterialDocumentRequestBus::EventResult(openResult, documentId, &MaterialDocumentRequestBus::Events::Open, documentPath);
@@ -217,7 +217,7 @@ namespace MaterialEditor
                 {
                     QMessageBox::critical(
                         QApplication::activeWindow(), QString("Material document could not be opened"),
-                        QString("Failed to open: \n%1\n\n%2").arg(documentPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                        QString("Failed to open: \n%1\n\n%2").arg(documentPath.c_str()).arg(traceRecorder.GetDump().c_str()));
                     MaterialDocumentSystemRequestBus::Broadcast(&MaterialDocumentSystemRequestBus::Events::CloseDocument, documentId);
                 }
             }
@@ -233,7 +233,7 @@ namespace MaterialEditor
                 QString("Would you like to update the document with these changes:\n%1?").arg(documentPath.c_str()),
                 QMessageBox::Yes | QMessageBox::No) == QMessageBox::Yes)
             {
-                AtomToolsFramework::TraceRecorder traceRecorder;
+                AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
                 bool openResult = false;
                 MaterialDocumentRequestBus::EventResult(openResult, documentId, &MaterialDocumentRequestBus::Events::Rebuild);
@@ -241,7 +241,7 @@ namespace MaterialEditor
                 {
                     QMessageBox::critical(
                         QApplication::activeWindow(), QString("Material document could not be opened"),
-                        QString("Failed to open: \n%1\n\n%2").arg(documentPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                        QString("Failed to open: \n%1\n\n%2").arg(documentPath.c_str()).arg(traceRecorder.GetDump().c_str()));
                     MaterialDocumentSystemRequestBus::Broadcast(&MaterialDocumentSystemRequestBus::Events::CloseDocument, documentId);
                 }
             }
@@ -313,7 +313,7 @@ namespace MaterialEditor
             }
         }
 
-        AtomToolsFramework::TraceRecorder traceRecorder;
+        AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
         bool closeResult = true;
         MaterialDocumentRequestBus::EventResult(closeResult, documentId, &MaterialDocumentRequestBus::Events::Close);
@@ -321,7 +321,7 @@ namespace MaterialEditor
         {
             QMessageBox::critical(
                 QApplication::activeWindow(), QString("Material document could not be closed"),
-                QString("Failed to close: \n%1\n\n%2").arg(documentPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                QString("Failed to close: \n%1\n\n%2").arg(documentPath.c_str()).arg(traceRecorder.GetDump().c_str()));
             return false;
         }
 
@@ -379,7 +379,7 @@ namespace MaterialEditor
             return false;
         }
 
-        AtomToolsFramework::TraceRecorder traceRecorder;
+        AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
         bool result = false;
         MaterialDocumentRequestBus::EventResult(result, documentId, &MaterialDocumentRequestBus::Events::Save);
@@ -387,7 +387,7 @@ namespace MaterialEditor
         {
             QMessageBox::critical(
                 QApplication::activeWindow(), QString("Material document could not be saved"),
-                QString("Failed to save: \n%1\n\n%2").arg(saveMaterialPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                QString("Failed to save: \n%1\n\n%2").arg(saveMaterialPath.c_str()).arg(traceRecorder.GetDump().c_str()));
             return false;
         }
 
@@ -409,7 +409,7 @@ namespace MaterialEditor
             return false;
         }
 
-        AtomToolsFramework::TraceRecorder traceRecorder;
+        AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
         bool result = false;
         MaterialDocumentRequestBus::EventResult(result, documentId, &MaterialDocumentRequestBus::Events::SaveAsCopy, saveMaterialPath);
@@ -417,7 +417,7 @@ namespace MaterialEditor
         {
             QMessageBox::critical(
                 QApplication::activeWindow(), QString("Material document could not be saved"),
-                QString("Failed to save: \n%1\n\n%2").arg(saveMaterialPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                QString("Failed to save: \n%1\n\n%2").arg(saveMaterialPath.c_str()).arg(traceRecorder.GetDump().c_str()));
             return false;
         }
 
@@ -439,7 +439,7 @@ namespace MaterialEditor
             return false;
         }
 
-        AtomToolsFramework::TraceRecorder traceRecorder;
+        AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
         bool result = false;
         MaterialDocumentRequestBus::EventResult(result, documentId, &MaterialDocumentRequestBus::Events::SaveAsChild, saveMaterialPath);
@@ -447,7 +447,7 @@ namespace MaterialEditor
         {
             QMessageBox::critical(
                 QApplication::activeWindow(), QString("Material document could not be saved"),
-                QString("Failed to save: \n%1\n\n%2").arg(saveMaterialPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                QString("Failed to save: \n%1\n\n%2").arg(saveMaterialPath.c_str()).arg(traceRecorder.GetDump().c_str()));
             return false;
         }
 
@@ -497,7 +497,7 @@ namespace MaterialEditor
             }
         }
 
-        AtomToolsFramework::TraceRecorder traceRecorder;
+        AtomToolsFramework::TraceRecorder traceRecorder(m_maxMessageBoxLineCount);
 
         AZ::Uuid documentId = AZ::Uuid::CreateNull();
         MaterialDocumentSystemRequestBus::BroadcastResult(documentId, &MaterialDocumentSystemRequestBus::Events::CreateDocument);
@@ -505,11 +505,11 @@ namespace MaterialEditor
         {
             QMessageBox::critical(
                 QApplication::activeWindow(), QString("Material document could not be created"),
-                QString("Failed to create: \n%1\n\n%2").arg(requestedPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                QString("Failed to create: \n%1\n\n%2").arg(requestedPath.c_str()).arg(traceRecorder.GetDump().c_str()));
             return AZ::Uuid::CreateNull();
         }
 
-        traceRecorder.m_messageSink.clear();
+        traceRecorder.GetDump().clear();
 
         bool openResult = false;
         MaterialDocumentRequestBus::EventResult(openResult, documentId, &MaterialDocumentRequestBus::Events::Open, requestedPath);
@@ -517,7 +517,7 @@ namespace MaterialEditor
         {
             QMessageBox::critical(
                 QApplication::activeWindow(), QString("Material document could not be opened"),
-                QString("Failed to open: \n%1\n\n%2").arg(requestedPath.c_str()).arg(traceRecorder.m_messageSink.c_str()));
+                QString("Failed to open: \n%1\n\n%2").arg(requestedPath.c_str()).arg(traceRecorder.GetDump().c_str()));
             MaterialDocumentSystemRequestBus::Broadcast(&MaterialDocumentSystemRequestBus::Events::DestroyDocument, documentId);
             return AZ::Uuid::CreateNull();
         }
diff --git a/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.h b/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.h
index 933a3351ba..b6c541421d 100644
--- a/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.h
+++ b/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocumentSystemComponent.h
@@ -98,5 +98,6 @@ namespace MaterialEditor
         AZStd::unordered_set<AZ::Uuid> m_documentIdsToRebuild;
         AZStd::unordered_set<AZ::Uuid> m_documentIdsToReopen;
         AZStd::unique_ptr<MaterialEditorSettings> m_settings;
+        const size_t m_maxMessageBoxLineCount = 15;
     };
 }