diff --git a/AutomatedTesting/Gem/PythonTests/smoke/test_Editor_NewExistingLevels_Works.py b/AutomatedTesting/Gem/PythonTests/smoke/test_Editor_NewExistingLevels_Works.py
index 6f654b9107..72e548615c 100644
--- a/AutomatedTesting/Gem/PythonTests/smoke/test_Editor_NewExistingLevels_Works.py
+++ b/AutomatedTesting/Gem/PythonTests/smoke/test_Editor_NewExistingLevels_Works.py
@@ -28,4 +28,4 @@ class TestAutomation(TestAutomationBase):
 
         from . import Editor_NewExistingLevels_Works as test_module
 
-        self._run_test(request, workspace, editor, test_module)
+        self._run_test(request, workspace, editor, test_module, extra_cmdline_args=["--regset=/Amazon/Preferences/EnablePrefabSystem=false"])