diff --git a/AutomatedTesting/Gem/PythonTests/scripting/NodePalette_SearchText_Deletion.py b/AutomatedTesting/Gem/PythonTests/scripting/NodePalette_SearchText_Deletion.py
new file mode 100644
index 0000000000..0739a8e637
--- /dev/null
+++ b/AutomatedTesting/Gem/PythonTests/scripting/NodePalette_SearchText_Deletion.py
@@ -0,0 +1,91 @@
+"""
+All or portions of this file Copyright (c) Amazon.com, Inc. or its affiliates or
+its licensors.
+
+For complete copyright and license terms please see the LICENSE at the root of this
+distribution (the "License"). All use of this software is governed by the License,
+or, if provided, by the license below or the license accompanying this file. Do not
+remove or modify any license notices. This file is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+"""
+
+
+# fmt: off
+class Tests():
+    set_search_string     = ("Search string is set",              "Search string is not set")
+    search_string_deleted = ("Search string deleted as expected", "Search string not deleted")
+# fmt: on
+
+
+def NodePalette_SearchText_Deletion():
+    """
+    Summary:
+     We enter some string in the Node Palette Search box, select that text and delete it.
+
+    Expected Behavior:
+     After RightClick->Delete the text in the Searchbox should be deleted.
+
+    Test Steps:
+     1) Open Script Canvas window (Tools > Script Canvas)
+     2) Get the SC window object
+     3) Open Node Manager if not opened already
+     4) Set some string in the Search box
+     5) Verify if the test string is set
+     6) Delete search string using right click and verify if it is cleared
+
+    Note:
+     - This test file must be called from the Open 3D Engine Editor command terminal
+     - Any passed and failed tests are written to the Editor.log file.
+            Parsing the file or running a log_monitor are required to observe the test results.
+
+    :return: None
+    """
+
+    from PySide2 import QtWidgets, QtTest, QtCore
+
+    from utils import TestHelper as helper
+
+    import azlmbr.legacy.general as general
+
+    import pyside_utils
+
+    TEST_STRING = "TestString"
+
+    # 1) Open Script Canvas window (Tools > Script Canvas)
+    general.idle_enable(True)
+    general.open_pane("Script Canvas")
+    helper.wait_for_condition(lambda: general.is_pane_visible("Script Canvas"), 3.0)
+
+    # 2) Get the SC window object
+    editor_window = pyside_utils.get_editor_main_window()
+    sc = editor_window.findChild(QtWidgets.QDockWidget, "Script Canvas")
+
+    # 3) Open Node Manager if not opened already
+    if sc.findChild(QtWidgets.QDockWidget, "NodePalette") is None:
+        action = pyside_utils.find_child_by_pattern(sc, {"text": "Node Palette", "type": QtWidgets.QAction})
+        action.trigger()
+    node_palette = sc.findChild(QtWidgets.QDockWidget, "NodePalette")
+    search_frame = node_palette.findChild(QtWidgets.QFrame, "searchFrame")
+
+    # 4) Set some string in the Search box
+    search_box = search_frame.findChild(QtWidgets.QLineEdit, "searchFilter")
+    search_box.setText(TEST_STRING)
+
+    # 5) Verify if the test string is set
+    result = helper.wait_for_condition(lambda: search_box.text() == TEST_STRING, 1.0)
+    Report.result(Tests.set_search_string, result)
+
+    # 6) Delete search string using right click and verify if it is cleared
+    QtTest.QTest.keyClick(search_box, QtCore.Qt.Key_A, QtCore.Qt.ControlModifier)
+    pyside_utils.trigger_context_menu_entry(search_box, "Delete")
+    result = helper.wait_for_condition(lambda: search_box.text() == "", 2.0)
+    Report.result(Tests.search_string_deleted, result)
+
+
+if __name__ == "__main__":
+    import ImportPathHelper as imports
+
+    imports.init()
+    from utils import Report
+
+    Report.start_test(NodePalette_SearchText_Deletion)
diff --git a/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py b/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py
index 192e11d378..963693b54c 100755
--- a/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py
+++ b/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py
@@ -195,6 +195,10 @@ class TestAutomation(TestAutomationBase):
     def test_NodeCategory_ExpandOnClick(self, request, workspace, editor, launcher_platform):
         from . import NodeCategory_ExpandOnClick as test_module
         self._run_test(request, workspace, editor, test_module)
+    
+    def test_NodePalette_SearchText_Deletion(self, request, workspace, editor, launcher_platform):
+        from . import NodePalette_SearchText_Deletion as test_module
+        self._run_test(request, workspace, editor, test_module)
 
 # NOTE: We had to use hydra_test_utils.py, as TestAutomationBase run_test method
 # fails because of pyside_utils import