diff --git a/Gems/Multiplayer/Code/Include/Multiplayer/IMultiplayer.h b/Gems/Multiplayer/Code/Include/Multiplayer/IMultiplayer.h
index e32b6188eb..e32a5bd0f3 100644
--- a/Gems/Multiplayer/Code/Include/Multiplayer/IMultiplayer.h
+++ b/Gems/Multiplayer/Code/Include/Multiplayer/IMultiplayer.h
@@ -44,6 +44,7 @@ namespace Multiplayer
 
     using ClientDisconnectedEvent = AZ::Event<>;
     using ConnectionAcquiredEvent = AZ::Event<MultiplayerAgentDatum>;
+    using ServerAcceptanceReceivedEvent = AZ::Event<>;
     using SessionInitEvent = AZ::Event<AzNetworking::INetworkInterface*>;
     using SessionShutdownEvent = AZ::Event<AzNetworking::INetworkInterface*>;
 
@@ -102,6 +103,10 @@ namespace Multiplayer
         //! @param handler The ConnectionAcquiredEvent Handler to add
         virtual void AddConnectionAcquiredHandler(ConnectionAcquiredEvent::Handler& handler) = 0;
 
+        //! Adds a ServerAcceptanceReceived Handler which is invoked when the client receives the accept packet from the server.
+        //! @param handler The ServerAcceptanceReceived Handler to add
+        virtual void AddServerAcceptanceReceivedHandler(ServerAcceptanceReceivedEvent::Handler& handler) = 0;
+
         //! Adds a SessionInitEvent Handler which is invoked when a new network session starts.
         //! @param handler The SessionInitEvent Handler to add
         virtual void AddSessionInitHandler(SessionInitEvent::Handler& handler) = 0;
diff --git a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.cpp b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.cpp
index d13c6538db..a08db89f4f 100644
--- a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.cpp
+++ b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.cpp
@@ -62,6 +62,7 @@ namespace Multiplayer
     }
 
     MultiplayerEditorSystemComponent::MultiplayerEditorSystemComponent()
+        : m_serverAcceptanceReceivedHandler([this](){OnServerAcceptanceReceived();})
     {
         ;
     }
@@ -70,6 +71,7 @@ namespace Multiplayer
     {
         AzFramework::GameEntityContextEventBus::Handler::BusConnect();
         AzToolsFramework::EditorEvents::Bus::Handler::BusConnect();
+        AZ::Interface<IMultiplayer>::Get()->AddServerAcceptanceReceivedHandler(m_serverAcceptanceReceivedHandler);
     }
 
     void MultiplayerEditorSystemComponent::Deactivate()
@@ -146,10 +148,8 @@ namespace Multiplayer
         AZStd::replace(projectPath.begin(), projectPath.end(), AZ::IO::WindowsPathSeparator, AZ::IO::PosixPathSeparator);
         AzFramework::ProcessLauncher::ProcessLaunchInfo processLaunchInfo;
         processLaunchInfo.m_commandlineParameters = AZStd::string::format(
-            R"("%s" --project-path "%s" --editorsv_isDedicated true --sv_defaultPlayerSpawnAsset "%s")",
-            serverPath.c_str(),
-            projectPath.c_str(),
-            static_cast<AZ::CVarFixedString>(sv_defaultPlayerSpawnAsset).c_str());
+            R"("%s" --project-path "%s" --editorsv_isDedicated true --sv_defaultPlayerSpawnAsset "%s")", serverPath.c_str(),
+            projectPath.c_str(), static_cast<AZ::CVarFixedString>(sv_defaultPlayerSpawnAsset).c_str());
         processLaunchInfo.m_showWindow = true;
         processLaunchInfo.m_processPriority = AzFramework::ProcessPriority::PROCESSPRIORITY_NORMAL;
 
@@ -245,4 +245,12 @@ namespace Multiplayer
     void MultiplayerEditorSystemComponent::OnGameEntitiesReset()
     {
     }
+
+    void MultiplayerEditorSystemComponent::OnServerAcceptanceReceived()
+    {
+        // We're now accepting the connection to the EditorServer.
+        // In normal game clients SendReadyForEntityUpdates will be enabled once the appropriate level's root spawnable is loaded,
+        // but since we're in Editor, we're already in the level.
+        AZ::Interface<IMultiplayer>::Get()->SendReadyForEntityUpdates(true);
+    }
 }
diff --git a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.h b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.h
index 6a9e6a79b6..b1e9335697 100644
--- a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.h
+++ b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorSystemComponent.h
@@ -8,6 +8,8 @@
 
 #pragma once
 
+#include "Multiplayer/IMultiplayer.h"
+
 #include <IEditor.h>
 
 #include <Editor/MultiplayerEditorConnection.h>
@@ -45,6 +47,9 @@ namespace Multiplayer
         MultiplayerEditorSystemComponent();
         ~MultiplayerEditorSystemComponent() override = default;
 
+        //! Called once the editor receives the server's accept packet
+        void OnServerAcceptanceReceived();
+
         //! AZ::Component overrides.
         //! @{
         void Activate() override;
@@ -71,5 +76,7 @@ namespace Multiplayer
         IEditor* m_editor = nullptr;
         AzFramework::ProcessWatcher* m_serverProcess = nullptr;
         AzNetworking::ConnectionId m_editorConnId;
+
+        ServerAcceptanceReceivedEvent::Handler m_serverAcceptanceReceivedHandler;
     };
 }
diff --git a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp
index 9b04cd98d4..d05139cb41 100644
--- a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp
+++ b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp
@@ -489,23 +489,13 @@ namespace Multiplayer
     {
         m_didHandshake = true;
 
-        // If this is an Editor then we're now accepting the connection to the EditorServer.
-        // In normal game clients SendReadyForEntityUpdates will be enabled once the appropriate level's root spawnable is loaded,
-        // but since we're in Editor, we're already in the level.
-        AZ::ApplicationTypeQuery applicationType;
-        AZ::ComponentApplicationBus::Broadcast(&AZ::ComponentApplicationRequests::QueryApplicationType, applicationType);
-        if (applicationType.IsEditor())
-        {
-            SendReadyForEntityUpdates(true);
-        }
-        else
-        {
-            AZ::CVarFixedString commandString = "sv_map " + packet.GetMap();
-            AZ::Interface<AZ::IConsole>::Get()->PerformCommand(commandString.c_str());
+        AZ::CVarFixedString commandString = "sv_map " + packet.GetMap();
+        AZ::Interface<AZ::IConsole>::Get()->PerformCommand(commandString.c_str());
 
-            AZ::CVarFixedString loadLevelString = "LoadLevel " + packet.GetMap();
-            AZ::Interface<AZ::IConsole>::Get()->PerformCommand(loadLevelString.c_str());
-        }
+        AZ::CVarFixedString loadLevelString = "LoadLevel " + packet.GetMap();
+        AZ::Interface<AZ::IConsole>::Get()->PerformCommand(loadLevelString.c_str());
+
+        m_serverAcceptanceReceivedEvent.Signal();
         return true;
     }
 
@@ -800,6 +790,11 @@ namespace Multiplayer
         handler.Connect(m_connAcquiredEvent);
     }
 
+    void MultiplayerSystemComponent::AddServerAcceptanceReceivedHandler(ServerAcceptanceReceivedEvent::Handler& handler)
+    {
+        handler.Connect(m_serverAcceptanceReceivedEvent);
+    }
+
     void MultiplayerSystemComponent::AddSessionInitHandler(SessionInitEvent::Handler& handler)
     {
         handler.Connect(m_initEvent);
diff --git a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h
index ba014f814a..4a4cdd4265 100644
--- a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h
+++ b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h
@@ -111,6 +111,7 @@ namespace Multiplayer
         void AddConnectionAcquiredHandler(ConnectionAcquiredEvent::Handler& handler) override;
         void AddSessionInitHandler(SessionInitEvent::Handler& handler) override;
         void AddSessionShutdownHandler(SessionShutdownEvent::Handler& handler) override;
+        void AddServerAcceptanceReceivedHandler(ServerAcceptanceReceivedEvent::Handler& handler) override;
         bool StartHosting(uint16_t port, bool isDedicated = true) override;
         bool Connect(AZStd::string remoteAddress, uint16_t port) override;
         void Terminate(AzNetworking::DisconnectReason reason) override;
@@ -151,6 +152,7 @@ namespace Multiplayer
         SessionInitEvent m_initEvent;
         SessionShutdownEvent m_shutdownEvent;
         ConnectionAcquiredEvent m_connAcquiredEvent;
+        ServerAcceptanceReceivedEvent m_serverAcceptanceReceivedEvent;
         ClientDisconnectedEvent m_clientDisconnectedEvent;
 
         AZStd::queue<AZStd::string> m_pendingConnectionTickets;