diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp
index 76df971108..bc8da127a6 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp
@@ -159,6 +159,8 @@ namespace AzQtComponents
         // Timer for updating our hovered drop zone opacity
         QObject::connect(m_dropZoneHoverFadeInTimer, &QTimer::timeout, this, &FancyDocking::onDropZoneHoverFadeInUpdate);
         m_dropZoneHoverFadeInTimer->setInterval(g_FancyDockingConstants.dropZoneHoverFadeUpdateIntervalMS);
+        QIcon dragIcon = QIcon(QStringLiteral(":/Cursors/Grabbing.svg"));
+        m_dragCursor = QCursor(dragIcon.pixmap(32), 10, 5);
     }
 
     FancyDocking::~FancyDocking()
@@ -1884,6 +1886,8 @@ namespace AzQtComponents
             return;
         }
 
+        QApplication::setOverrideCursor(m_dragCursor);
+
         QPoint relativePressPos = pressPos;
 
         // If we are dragging a floating window, we need to grab a reference to its
@@ -1999,6 +2003,11 @@ namespace AzQtComponents
             clearDraggingState();
         }
 
+        if (QApplication::overrideCursor())
+        {
+            QApplication::restoreOverrideCursor();
+        }
+
         return true;
     }
 
@@ -2376,6 +2385,11 @@ namespace AzQtComponents
      */
     void FancyDocking::dropDockWidget(QDockWidget* dock, QWidget* onto, Qt::DockWidgetArea area)
     {
+        if (QApplication::overrideCursor())
+        {
+            QApplication::restoreOverrideCursor();
+        }                                         
+
         // If the dock widget we are dropping is currently a tab, we need to retrieve it from
         // the tab widget, and remove it as a tab.  We also need to remove its item from our
         // cache of widget <-> tab container since we are moving it somewhere else.
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h
index a466ce7087..20b90ad25c 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h
@@ -266,6 +266,8 @@ namespace AzQtComponents
 
         QString m_floatingWindowIdentifierPrefix;
         QString m_tabContainerIdentifierPrefix;
+
+        QCursor m_dragCursor;
     };
 
 } // namespace AzQtComponents
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp
index 895785f47b..121f35db61 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp
@@ -21,6 +21,7 @@
 
 #include <QAction>
 #include <QActionEvent>
+#include <QApplication>
 #include <QHBoxLayout>
 #include <QIcon>
 #include <QLayout>
@@ -419,6 +420,14 @@ namespace AzQtComponents
         // a mouse move. The paint handler updates the close button's visibility
         setAttribute(Qt::WA_Hover);
         AzQtComponents::Style::addClass(this, g_emptyStyleClass);
+
+        QIcon icon = QIcon(QStringLiteral(":/Cursors/Grab_release.svg"));
+        m_hoverCursor = QCursor(icon.pixmap(32), 10, 5);
+
+        icon = QIcon(QStringLiteral(":/Cursors/Grabbing.svg"));
+        m_dragCursor = QCursor(icon.pixmap(32), 10, 5);
+
+        this->setCursor(m_hoverCursor);                                  
     }
 
     void TabBar::setHandleOverflow(bool handleOverflow)
@@ -479,6 +488,13 @@ namespace AzQtComponents
 
     void TabBar::mouseReleaseEvent(QMouseEvent* mouseEvent)
     {
+        // Ensure we don't reset the cursor in the case of a dummy event being sent from DockTabWidget to trigger the animation.
+        Qt::MouseButtons realButtons = QApplication::mouseButtons();
+        if (QApplication::overrideCursor() && !(realButtons & Qt::LeftButton))
+        {
+            QApplication::restoreOverrideCursor();
+        }
+
         if (m_movingTab && !(mouseEvent->buttons() & Qt::LeftButton))
         {
             // When a moving tab is released, there is a short animation to put the moving tab
@@ -632,13 +648,7 @@ namespace AzQtComponents
                 {
                     QPoint p = tabRect(i).topLeft();
 
-                    int rightPadding = g_closeButtonPadding;
-                    if (m_overflowing == Overflowing)
-                    {
-                        rightPadding = 0;
-                    }
-
-                    p.setX(p.x() + tabRect(i).width() - rightPadding - g_closeButtonWidth);
+                    p.setX(p.x() + tabRect(i).width() - g_closeButtonPadding - g_closeButtonWidth);
                     p.setY(p.y() + 1 + (tabRect(i).height() - g_closeButtonWidth) / 2);
                     tabBtn->move(p);
                 }
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h
index 3f12f79907..e86deef7b4 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h
@@ -203,6 +203,9 @@ namespace AzQtComponents
         bool m_movingTab = false;
         QPoint m_lastMousePress;
 
+        QCursor m_dragCursor;
+        QCursor m_hoverCursor;
+
         void resetOverflow();
         void overflowIfNeeded();
         void showCloseButtonAt(int index);
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grab_release.svg b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grab_release.svg
new file mode 100644
index 0000000000..c0da9b802f
--- /dev/null
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grab_release.svg
@@ -0,0 +1,37 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Generator: Adobe Illustrator 25.2.1, SVG Export Plug-In . SVG Version: 6.00 Build 0)  -->
+<svg version="1.1" id="Layer_1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px"
+	 viewBox="0 0 24 24" style="enable-background:new 0 0 24 24;" xml:space="preserve">
+<style type="text/css">
+	.st0{fill:#FFFFFF;}
+</style>
+<g id="Cursor-_x2F_-Grab-release">
+	<g id="Group" transform="translate(3.366335, 2.000000)">
+		<g id="Path">
+			<g>
+				<path id="path-1" d="M3.6,3v5.7H3.5C2.8,8.2,1.8,8.1,1,8.4L0.8,8.5c-0.7,0.3-1,1.1-0.7,1.8l1.2,3c0.2,0.6,0.8,1.4,1.3,1.9
+					L3,15.5c0.3,0.2,0.5,0.5,0.8,0.7l0.1,0.1l0.2,0.2l0.2,0.2C4.4,16.9,4.5,17,4.5,17v0.1l0,0v1.8h5.3l0.4-0.7l0.4,0.7h2.5V17l0,0
+					v-0.1l0.1-0.2l0.1-0.2l0.1-0.2l0.1-0.3l0.2-0.4l0.2-0.4l0.3-0.6l0.1-0.2c0.4-0.4,0.7-1.4,0.7-2V8c0-0.9-0.3-2.9-1.7-2.9
+					c-0.8,0-1,0.4-1.2,0.6c-0.1-0.2-0.3-1.1-1.3-1.2c-0.8,0-1.2,0.4-1.3,0.7C9.4,4.9,9.2,4.1,8.2,4.1c-0.6,0-0.8,0.1-1,0.4
+					C7,4.1,6.4,0.7,5.3,0.7C4.3,0.7,3.6,2.2,3.6,3z"/>
+			</g>
+			<g>
+				<path id="path-1_1_" d="M3.6,3v5.7H3.5C2.8,8.2,1.8,8.1,1,8.4L0.8,8.5c-0.7,0.3-1,1.1-0.7,1.8l1.2,3c0.2,0.6,0.8,1.4,1.3,1.9
+					L3,15.5c0.3,0.2,0.5,0.5,0.8,0.7l0.1,0.1l0.2,0.2l0.2,0.2c0.1,0.1,0.2,0.2,0.2,0.2v0.2l0,0v1.8h5.3l0.4-0.7l0.4,0.7h2.5V17l0,0
+					v-0.1l0.1-0.2l0.1-0.2l0.1-0.2l0.1-0.3l0.2-0.4l0.2-0.4l0.3-0.6l0.1-0.2c0.4-0.4,0.7-1.4,0.7-2V8c0-0.9-0.3-2.9-1.7-2.9
+					c-0.8,0-1,0.4-1.2,0.6c-0.1-0.2-0.3-1.1-1.3-1.2c-0.8,0-1.2,0.4-1.3,0.7C9.4,4.9,9.2,4.1,8.2,4.1c-0.3,0-0.6,0.4-1,0.5
+					c0,0.2,0.2-2.2-0.2-2.9c-0.2-0.3-0.6-1-1.7-1C4.3,0.7,3.6,2.2,3.6,3z"/>
+			</g>
+		</g>
+		<path id="Path_1_" class="st0" d="M7.2,7.1V6.2c0-0.4,0.3-1.1,1-1.1s0.9,0.7,0.9,1.2c0,1.5,0,0.4,0,1h0.6c0-2.1,0-0.3,0-0.7
+			c0-0.6,0.4-1,1-1s1,0.5,1,1.1c0,0.4,0,0.7,0,0.7h0.6V7.1c0-0.5,0.2-0.9,0.8-0.9c0.7,0,0.9,0.5,1,1.3v1v3.8c0,0.5-0.2,1.1-0.4,1.6
+			l-0.1,0.2l-0.3,0.6L13,15.1l-0.2,0.3l-0.2,0.3L12.4,16c-0.2,0.4-0.3,0.7-0.3,1v0.1V18h-0.9l-0.9-1.9l-1,1.9H5.5v-0.9
+			c0-0.3-0.3-0.6-0.6-1.1l-0.3-0.3l-0.3-0.3l-0.1-0.1L4,15.1l-0.2-0.2l-0.5-0.5c-0.3-0.3-0.8-0.7-1-1.1L2.1,13L1,10
+			C0.9,9.8,1,9.5,1.1,9.4c0,0,0,0,0.1-0.1l0.2-0.1C2.2,8.9,3.1,9.3,3.6,10l0.1,0.1l0.8,1.3V3c0-0.5,0.5-1,1-1s0.9,0.5,0.9,0.9
+			c0,2.7,0,4.1,0,4.2H7.2z"/>
+		<polygon id="Path_2_" points="11.2,10.5 12.2,10.5 12.2,14.2 11.2,14.2 		"/>
+		<polygon id="Path_3_" points="9.3,10.5 10.3,10.5 10.3,14.2 9.3,14.2 		"/>
+		<polygon id="Path_4_" points="7.4,10.5 8.4,10.5 8.4,14.2 7.4,14.2 		"/>
+	</g>
+</g>
+</svg>
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grabbing.svg b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grabbing.svg
new file mode 100644
index 0000000000..e70be77d51
--- /dev/null
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grabbing.svg
@@ -0,0 +1,23 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Generator: Adobe Illustrator 25.2.1, SVG Export Plug-In . SVG Version: 6.00 Build 0)  -->
+<svg version="1.1" id="Layer_1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px"
+	 viewBox="0 0 24 24" style="enable-background:new 0 0 24 24;" xml:space="preserve">
+<style type="text/css">
+	.st0{fill-rule:evenodd;clip-rule:evenodd;fill:#FFFFFF;}
+	.st1{fill-rule:evenodd;clip-rule:evenodd;fill:none;stroke:#000000;stroke-miterlimit:10;}
+	.st2{fill-rule:evenodd;clip-rule:evenodd;}
+</style>
+<path class="st0" d="M7.6,7.1V5.8c0-0.4,0.1-0.7,0.4-1c0.2-0.3,0.6-0.4,0.9-0.4l0,0c0.6,0,1.1,0.3,1.5,0.7l0.1,0.1l0,0l0.1-0.1
+	c0.3,0,0.5-0.1,0.7-0.1h0.1c0.6,0,1.1,0.3,1.5,0.7L13,5.8l0,0l0.1-0.1c0.2-0.1,0.3-0.2,0.5-0.2h0.1c0.7,0,1.2,0.3,1.6,0.7l0.1,0.1
+	l0,0l0.1-0.1C15.8,6.1,16,6,16.2,6h0.1c0.6,0,1.1,0.3,1.5,0.7c0.4,0.4,0.6,1,0.6,1.6l0,0V13c0,0.6-0.3,1.6-0.6,2.1
+	c0,0-1.4,2.1-1.4,2.8l0,0v1.6h-1.8l-0.4-1.4l-0.7,1.4H8.6V18c0-0.7-3-2.7-3-2.7c-0.6-0.4-1-1.3-1-2l0,0V9.7c0-0.7,0.3-1.3,0.7-1.8
+	C5.9,7.3,6.8,7,7.6,7.1L7.6,7.1z"/>
+<path class="st1" d="M7.6,7.1V5.8c0-0.4,0.1-0.7,0.4-1c0.2-0.3,0.6-0.4,0.9-0.4l0,0c0.6,0,1.1,0.3,1.5,0.7l0.1,0.1l0,0l0.1-0.1
+	c0.3,0,0.5-0.1,0.7-0.1h0.1c0.6,0,1.1,0.3,1.5,0.7L13,5.8l0,0l0.1-0.1c0.2-0.1,0.3-0.2,0.5-0.2h0.1c0.7,0,1.2,0.3,1.6,0.7l0.1,0.1
+	l0,0l0.1-0.1C15.8,6.1,16,6,16.2,6h0.1c0.6,0,1.1,0.3,1.5,0.7c0.4,0.4,0.6,1,0.6,1.6l0,0V13c0,0.6-0.3,1.6-0.6,2.1
+	c0,0-1.4,2.1-1.4,2.8l0,0v1.6h-1.8l-0.4-1.4l-0.7,1.4H8.6V18c0-0.7-3-2.7-3-2.7c-0.6-0.4-1-1.3-1-2l0,0V9.7c0-0.7,0.3-1.3,0.7-1.8
+	C5.9,7.3,6.8,7,7.6,7.1L7.6,7.1z"/>
+<polygon class="st2" points="11.1,11 12.1,11 12.1,15 11.1,15 "/>
+<polygon class="st2" points="13.1,11 14.1,11 14.1,15 13.1,15 "/>
+<polygon class="st2" points="15.1,11 16.1,11 16.1,15 15.1,15 "/>
+</svg>
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc b/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc
index f9e601fb6d..048758c283 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc
@@ -636,5 +636,7 @@
 </qresource>
   <qresource prefix="/Cursors">
     <file alias="Pointer.svg">img/UI20/Cursors/Pointer.svg</file>
+    <file alias="Grab_release.svg">img/UI20/Cursors/Grab_release.svg</file>
+    <file alias="Grabbing.svg">img/UI20/Cursors/Grabbing.svg</file>
   </qresource>
 </RCC>