diff --git a/AutomatedTesting/Gem/PythonTests/CMakeLists.txt b/AutomatedTesting/Gem/PythonTests/CMakeLists.txt
index 3124f1048a..3f0827f995 100644
--- a/AutomatedTesting/Gem/PythonTests/CMakeLists.txt
+++ b/AutomatedTesting/Gem/PythonTests/CMakeLists.txt
@@ -123,6 +123,21 @@ if(PAL_TRAIT_BUILD_TESTS_SUPPORTED AND PAL_TRAIT_BUILD_HOST_TOOLS)
     )
 endif()
 
+## Prefab ##
+if(PAL_TRAIT_BUILD_TESTS_SUPPORTED AND PAL_TRAIT_BUILD_HOST_TOOLS)
+    ly_add_pytest(
+        NAME AutomatedTesting::PrefabTests
+        TEST_SUITE main
+        TEST_SERIAL
+        PATH ${CMAKE_CURRENT_LIST_DIR}/prefab/TestSuite_Main.py
+        TIMEOUT 1500
+        RUNTIME_DEPENDENCIES
+            Legacy::Editor
+            AZ::AssetProcessor
+            AutomatedTesting.Assets
+    )
+endif()
+
 ## Editor Python Bindings ##
 if(PAL_TRAIT_BUILD_TESTS_SUPPORTED AND PAL_TRAIT_BUILD_HOST_TOOLS)
     ly_add_pytest(
diff --git a/AutomatedTesting/Gem/PythonTests/prefab/PrefabLevel_OpensLevelWithEntities.py b/AutomatedTesting/Gem/PythonTests/prefab/PrefabLevel_OpensLevelWithEntities.py
new file mode 100644
index 0000000000..3401c6a0a9
--- /dev/null
+++ b/AutomatedTesting/Gem/PythonTests/prefab/PrefabLevel_OpensLevelWithEntities.py
@@ -0,0 +1,76 @@
+"""
+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():
+    find_empty_entity = ("Entity: 'EmptyEntity' found", "Entity: 'EmptyEntity' *not* found in level")
+    empty_entity_pos = ("'EmptyEntity' position is at the expected position", "'EmptyEntity' position is *not* at the expected position")
+    find_pxentity = ("Entity: 'EntityWithPxCollider' found", "Entity: 'EntityWithPxCollider' *not* found in level")
+    pxentity_component = ("Entity: 'EntityWithPxCollider' has a Physx Collider", "Entity: 'EntityWithPxCollider' does *not* have a Physx Collider")
+
+# fmt:on
+
+def PrefabLevel_OpensLevelWithEntities():
+    """
+    Opens the level that contains 2 entities, "EmptyEntity" and "EntityWithPxCollider".
+    This test makes sure that both entities exist after opening the level and that:
+    - EmptyEntity is at Position: (10, 20, 30)
+    - EntityWithPxCollider has a PhysXCollider component
+    """
+
+    import os
+    import sys
+
+    from editor_python_test_tools.utils import Report
+    from editor_python_test_tools.utils import TestHelper as helper
+
+    import editor_python_test_tools.hydra_editor_utils as hydra
+
+    import azlmbr.entity as entity
+    import azlmbr.bus as bus
+    from azlmbr.math import Vector3
+
+    EXPECTED_EMPTY_ENTITY_POS = Vector3(10.00, 20.0, 30.0)
+
+    helper.init_idle()
+    helper.open_level("prefab", "PrefabLevel_OpensLevelWithEntities")
+
+    def find_entity(entity_name):
+        searchFilter = entity.SearchFilter()
+        searchFilter.names = [entity_name]
+        entityIds = entity.SearchBus(bus.Broadcast, 'SearchEntities', searchFilter)
+        if entityIds[0].IsValid():
+            return entityIds[0]
+        return None
+#Checks for an entity called "EmptyEntity"
+    helper.wait_for_condition(lambda: find_entity("EmptyEntity").IsValid(), 5.0)
+    empty_entity_id = find_entity("EmptyEntity")
+    Report.result(Tests.find_empty_entity, empty_entity_id.IsValid())
+
+# Checks if the EmptyEntity is in the correct position and if it fails, it will provide the expected postion and the actual postion of the entity in the Editor log
+    empty_entity_pos = azlmbr.components.TransformBus(azlmbr.bus.Event, "GetWorldTranslation", empty_entity_id)
+    is_at_position = empty_entity_pos.IsClose(EXPECTED_EMPTY_ENTITY_POS)
+    Report.result(Tests.empty_entity_pos, is_at_position)
+    if not is_at_position:
+        Report.info(f'Expected position: {EXPECTED_EMPTY_ENTITY_POS.ToString()}, actual position: {empty_entity_pos.ToString()}')
+
+#Checks for an entity called "EntityWithPxCollider" and if it has the PhysX Collider component
+    pxentity = find_entity("EntityWithPxCollider")
+    Report.result(Tests.find_pxentity, pxentity.IsValid())
+
+    pxcollider_id = hydra.get_component_type_id("PhysX Collider")
+    hasComponent = azlmbr.editor.EditorComponentAPIBus(azlmbr.bus.Broadcast, 'HasComponentOfType', pxentity, pxcollider_id)
+    Report.result(Tests.pxentity_component, hasComponent)
+
+if __name__ == "__main__":
+
+    from editor_python_test_tools.utils import Report
+    Report.start_test (PrefabLevel_OpensLevelWithEntities)
diff --git a/AutomatedTesting/Gem/PythonTests/prefab/TestSuite_Main.py b/AutomatedTesting/Gem/PythonTests/prefab/TestSuite_Main.py
new file mode 100644
index 0000000000..51c78a99e2
--- /dev/null
+++ b/AutomatedTesting/Gem/PythonTests/prefab/TestSuite_Main.py
@@ -0,0 +1,35 @@
+"""
+ 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.
+
+ """
+
+# This suite consists of all test cases that are passing and have been verified.
+
+import pytest
+import os
+import sys
+
+from ly_test_tools import LAUNCHERS
+
+sys.path.append (os.path.dirname (os.path.abspath (__file__)) + '/../automatedtesting_shared')
+
+from base import TestAutomationBase
+
+@pytest.mark.SUITE_main
+@pytest.mark.parametrize("launcher_platform", ['windows_editor'])
+@pytest.mark.parametrize("project", ["AutomatedTesting"])
+class TestAutomation(TestAutomationBase):
+
+    def _run_prefab_test(self, request, workspace, editor, test_module):
+        self._run_test(request, workspace, editor, test_module, ["--regset=/Amazon/Preferences/EnablePrefabSystem=true"])
+
+    def test_PrefabLevel_OpensLevelWithEntities(self, request, workspace, editor, launcher_platform):
+        from . import PrefabLevel_OpensLevelWithEntities as test_module
+        self._run_prefab_test(request, workspace, editor, test_module)
diff --git a/AutomatedTesting/Gem/PythonTests/prefab/__init__.py b/AutomatedTesting/Gem/PythonTests/prefab/__init__.py
new file mode 100644
index 0000000000..79f8fa4422
--- /dev/null
+++ b/AutomatedTesting/Gem/PythonTests/prefab/__init__.py
@@ -0,0 +1,10 @@
+"""
+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.
+"""
diff --git a/AutomatedTesting/Gem/PythonTests/scripting/Node_HappyPath_DuplicateNode.py b/AutomatedTesting/Gem/PythonTests/scripting/Node_HappyPath_DuplicateNode.py
new file mode 100644
index 0000000000..77d3b2fcde
--- /dev/null
+++ b/AutomatedTesting/Gem/PythonTests/scripting/Node_HappyPath_DuplicateNode.py
@@ -0,0 +1,117 @@
+"""
+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():
+    node_duplicated = ("Successfully duplicated node", "Failed to duplicate the node")
+# fmt: on
+
+
+def Node_HappyPath_DuplicateNode():
+    """
+    Summary:
+     Duplicating node in graph
+
+    Expected Behavior:
+     Upon selecting a node and pressing Ctrl+D, the node will be duplicated
+
+    Test Steps:
+     1) Open Script Canvas window (Tools > Script Canvas)
+     2) Open a new graph
+     3) Add node to graph
+     4) Duplicate node
+     5) Verify the node was duplicated6) Verify the node was duplicated
+
+    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
+    from PySide2.QtCore import Qt
+
+    from editor_python_test_tools.utils import Report
+    from editor_python_test_tools.utils import TestHelper as helper
+    import editor_python_test_tools.pyside_utils as pyside_utils
+
+    import azlmbr.legacy.general as general
+
+    WAIT_FRAMES = 200
+
+    NODE_NAME = "Print"
+    NODE_CATEGORY = "Debug"
+    EXPECTED_STRING = f"{NODE_NAME} - {NODE_CATEGORY} (2 Selected)"
+
+    def command_line_input(command_str):
+        cmd_action = pyside_utils.find_child_by_pattern(
+            sc_main, {"objectName": "action_ViewCommandLine", "type": QtWidgets.QAction}
+        )
+        cmd_action.trigger()
+        textbox = sc.findChild(QtWidgets.QLineEdit, "commandText")
+        QtTest.QTest.keyClicks(textbox, command_str)
+        QtTest.QTest.keyClick(textbox, Qt.Key_Enter, Qt.NoModifier)
+
+    def grab_title_text():
+        scroll_area = node_inspector.findChild(QtWidgets.QScrollArea, "")
+        QtTest.QTest.keyClick(graph, "a", Qt.ControlModifier, WAIT_FRAMES)
+        background = scroll_area.findChild(QtWidgets.QFrame, "Background")
+        title = background.findChild(QtWidgets.QLabel, "Title")
+        text = title.findChild(QtWidgets.QLabel, "Title")
+        return text.text()
+
+    # 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"), 5.0)
+
+    # 2) Open a new graph
+    editor_window = pyside_utils.get_editor_main_window()
+    sc = editor_window.findChild(QtWidgets.QDockWidget, "Script Canvas")
+    sc_main = sc.findChild(QtWidgets.QMainWindow)
+    create_new_graph = pyside_utils.find_child_by_pattern(
+        sc_main, {"objectName": "action_New_Script", "type": QtWidgets.QAction}
+    )
+    if sc.findChild(QtWidgets.QDockWidget, "NodeInspector") is None:
+        action = pyside_utils.find_child_by_pattern(sc, {"text": "Node Inspector", "type": QtWidgets.QAction})
+        action.trigger()
+    node_inspector = sc.findChild(QtWidgets.QDockWidget, "NodeInspector")
+    create_new_graph.trigger()
+
+    # 3) Add node
+    command_line_input("add_node Print")
+
+    # 4) Duplicate node
+    graph_view = sc.findChild(QtWidgets.QFrame, "graphicsViewFrame")
+    graph = graph_view.findChild(QtWidgets.QWidget, "")
+    # There are currently no utilities available to directly duplicate the node,
+    # therefore the node is selected using CTRL+A on the graph to select
+    # it and then CTRL+D to duplicate
+    sc_main.activateWindow()
+    QtTest.QTest.keyClick(graph, "a", Qt.ControlModifier, WAIT_FRAMES)
+    QtTest.QTest.keyClick(graph, "d", Qt.ControlModifier, WAIT_FRAMES)
+
+    # 5) Verify the node was duplicated
+    # As direct interaction with node is not available the text on the label
+    # inside the Node Inspector is validated showing two nodes exist
+    after_dup = grab_title_text()
+    Report.result(Tests.node_duplicated, after_dup == EXPECTED_STRING)
+
+
+if __name__ == "__main__":
+    import ImportPathHelper as imports
+
+    imports.init()
+    from editor_python_test_tools.utils import Report
+
+    Report.start_test(Node_HappyPath_DuplicateNode)
diff --git a/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py b/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py
index dda75f0a0c..2cd41d1980 100755
--- a/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py
+++ b/AutomatedTesting/Gem/PythonTests/scripting/TestSuite_Active.py
@@ -84,7 +84,7 @@ class TestAutomation(TestAutomationBase):
         file_system.delete([os.path.join(workspace.paths.project(), "Levels", level)], True, True)
         from . import OnEntityActivatedDeactivated_PrintMessage as test_module
         self._run_test(request, workspace, editor, test_module)
-    
+
     @pytest.mark.test_case_id("T92562993")
     def test_NodePalette_ClearSelection(self, request, workspace, editor, launcher_platform, project):
         from . import NodePalette_ClearSelection as test_module
@@ -122,7 +122,7 @@ class TestAutomation(TestAutomationBase):
     def test_NodeInspector_RenameVariable(self, request, workspace, editor, launcher_platform, project):
         from . import NodeInspector_RenameVariable as test_module
         self._run_test(request, workspace, editor, test_module)
-        
+
     @pytest.mark.test_case_id("T92569137")
     def test_Debugging_TargetMultipleGraphs(self, request, workspace, editor, launcher_platform, project):
         from . import Debugging_TargetMultipleGraphs as test_module
@@ -195,7 +195,7 @@ 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)
@@ -204,6 +204,10 @@ class TestAutomation(TestAutomationBase):
         from . import VariableManager_UnpinVariableType_Works as test_module
         self._run_test(request, workspace, editor, test_module)
 
+    def test_Node_HappyPath_DuplicateNode(self, request, workspace, editor, launcher_platform):
+        from . import Node_HappyPath_DuplicateNode 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
 @pytest.mark.SUITE_periodic
diff --git a/AutomatedTesting/Levels/Prefab/PrefabLevel_OpensLevelWithEntities/PrefabLevel_OpensLevelWithEntities.prefab b/AutomatedTesting/Levels/Prefab/PrefabLevel_OpensLevelWithEntities/PrefabLevel_OpensLevelWithEntities.prefab
new file mode 100644
index 0000000000..0776f25935
--- /dev/null
+++ b/AutomatedTesting/Levels/Prefab/PrefabLevel_OpensLevelWithEntities/PrefabLevel_OpensLevelWithEntities.prefab
@@ -0,0 +1,171 @@
+{
+    "Source": "Levels/PrefabLevel_OpensLevelWithEntities/PrefabLevel_OpensLevelWithEntities.prefab",
+    "ContainerEntity": {
+        "Id": "Entity_[403811863694]",
+        "Name": "Level",
+        "Components": {
+            "Component_[10582285743525614098]": {
+                "$type": "SelectionComponent",
+                "Id": 10582285743525614098
+            },
+            "Component_[12253783095375428046]": {
+                "$type": "EditorInspectorComponent",
+                "Id": 12253783095375428046
+            },
+            "Component_[13764860261821571747]": {
+                "$type": "{27F1E1A1-8D9D-4C3B-BD3A-AFB9762449C0} TransformComponent",
+                "Id": 13764860261821571747,
+                "Parent Entity": ""
+            },
+            "Component_[15844324401733835865]": {
+                "$type": "EditorEntitySortComponent",
+                "Id": 15844324401733835865
+            },
+            "Component_[1605854641405361768]": {
+                "$type": "EditorLockComponent",
+                "Id": 1605854641405361768
+            },
+            "Component_[17698173984524983803]": {
+                "$type": "EditorOnlyEntityComponent",
+                "Id": 17698173984524983803
+            },
+            "Component_[3444251662966224826]": {
+                "$type": "EditorPendingCompositionComponent",
+                "Id": 3444251662966224826
+            },
+            "Component_[4231768881195179982]": {
+                "$type": "EditorVisibilityComponent",
+                "Id": 4231768881195179982
+            },
+            "Component_[4722360315410084479]": {
+                "$type": "EditorDisabledCompositionComponent",
+                "Id": 4722360315410084479
+            },
+            "Component_[7614719100624882952]": {
+                "$type": "EditorPrefabComponent",
+                "Id": 7614719100624882952
+            },
+            "Component_[9585901769691795481]": {
+                "$type": "EditorEntityIconComponent",
+                "Id": 9585901769691795481
+            }
+        },
+        "IsDependencyReady": true
+    },
+    "Entities": {
+        "Entity_[438171602062]": {
+            "Id": "Entity_[438171602062]",
+            "Name": "EntityWithPxCollider",
+            "Components": {
+                "Component_[11161653124805884473]": {
+                    "$type": "EditorPendingCompositionComponent",
+                    "Id": 11161653124805884473
+                },
+                "Component_[13116773315299882093]": {
+                    "$type": "EditorOnlyEntityComponent",
+                    "Id": 13116773315299882093
+                },
+                "Component_[15820915681461536711]": {
+                    "$type": "EditorVisibilityComponent",
+                    "Id": 15820915681461536711
+                },
+                "Component_[2222061938345834243]": {
+                    "$type": "SelectionComponent",
+                    "Id": 2222061938345834243
+                },
+                "Component_[3861913165076405600]": {
+                    "$type": "EditorEntitySortComponent",
+                    "Id": 3861913165076405600
+                },
+                "Component_[7118587015611303204]": {
+                    "$type": "EditorLockComponent",
+                    "Id": 7118587015611303204
+                },
+                "Component_[7751174327125555504]": {
+                    "$type": "EditorDisabledCompositionComponent",
+                    "Id": 7751174327125555504
+                },
+                "Component_[8304730147756374057]": {
+                    "$type": "{27F1E1A1-8D9D-4C3B-BD3A-AFB9762449C0} TransformComponent",
+                    "Id": 8304730147756374057,
+                    "Parent Entity": "Entity_[403811863694]",
+                    "Transform Data": {
+                        "Translate": [
+                            0.0,
+                            20.0,
+                            34.0
+                        ]
+                    }
+                },
+                "Component_[8866353210615920259]": {
+                    "$type": "EditorEntityIconComponent",
+                    "Id": 8866353210615920259
+                },
+                "Component_[8988181228601932779]": {
+                    "$type": "EditorInspectorComponent",
+                    "Id": 8988181228601932779
+                },
+                "Component_[7103333782129541775]": {
+                    "$type": "EditorColliderComponent",
+                    "Id": 7103333782129541775
+                }
+            },
+            "IsDependencyReady": true
+        },
+        "Entity_[532660882574]": {
+            "Id": "Entity_[532660882574]",
+            "Name": "EmptyEntity",
+            "Components": {
+                "Component_[16437814751543997955]": {
+                    "$type": "EditorEntitySortComponent",
+                    "Id": 16437814751543997955
+                },
+                "Component_[16751517102089557119]": {
+                    "$type": "EditorPendingCompositionComponent",
+                    "Id": 16751517102089557119
+                },
+                "Component_[16773275259304187949]": {
+                    "$type": "EditorInspectorComponent",
+                    "Id": 16773275259304187949
+                },
+                "Component_[17283539636910567200]": {
+                    "$type": "SelectionComponent",
+                    "Id": 17283539636910567200
+                },
+                "Component_[250004123617033400]": {
+                    "$type": "EditorLockComponent",
+                    "Id": 250004123617033400
+                },
+                "Component_[2791138963683667073]": {
+                    "$type": "{27F1E1A1-8D9D-4C3B-BD3A-AFB9762449C0} TransformComponent",
+                    "Id": 2791138963683667073,
+                    "Parent Entity": "Entity_[403811863694]",
+                    "Transform Data": {
+                        "Translate": [
+                            10.0,
+                            20.0,
+                            30.0
+                        ]
+                    }
+                },
+                "Component_[3296942400051129145]": {
+                    "$type": "EditorEntityIconComponent",
+                    "Id": 3296942400051129145
+                },
+                "Component_[3422076964671342434]": {
+                    "$type": "EditorOnlyEntityComponent",
+                    "Id": 3422076964671342434
+                },
+                "Component_[3431895414183121731]": {
+                    "$type": "EditorVisibilityComponent",
+                    "Id": 3431895414183121731
+                },
+                "Component_[7072085777705148766]": {
+                    "$type": "EditorDisabledCompositionComponent",
+                    "Id": 7072085777705148766
+                }
+            },
+            "IsDependencyReady": true
+        }
+    }
+}
\ No newline at end of file
diff --git a/Code/Framework/AzCore/AzCore/Component/ComponentApplication.cpp b/Code/Framework/AzCore/AzCore/Component/ComponentApplication.cpp
index daf5b5efd2..b2fe4417d3 100644
--- a/Code/Framework/AzCore/AzCore/Component/ComponentApplication.cpp
+++ b/Code/Framework/AzCore/AzCore/Component/ComponentApplication.cpp
@@ -1304,7 +1304,7 @@ namespace AZ
                 // Add all auto loadable non-asset gems to the list of gem modules to load
                 if (!moduleLoadData.m_autoLoad)
                 {
-                    break;
+                    continue;
                 }
                 for (AZ::OSString& dynamicLibraryPath : moduleLoadData.m_dynamicLibraryPaths)
                 {
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
index 6b6f1475bb..02243a8c77 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
@@ -282,14 +282,6 @@ namespace AzToolsFramework
             containerEntity->AddComponent(aznew Prefab::EditorPrefabComponent());
             HandleEntitiesAdded({containerEntity});
             HandleEntitiesAdded(entities);
-            
-            // Update the template of the instance since we modified the entities of the instance by calling HandleEntitiesAdded.
-            Prefab::PrefabDom serializedInstance;
-            if (Prefab::PrefabDomUtils::StoreInstanceInPrefabDom(addedInstance, serializedInstance))
-            {
-                m_prefabSystemComponent->UpdatePrefabTemplate(addedInstance.GetTemplateId(), serializedInstance);
-            }
-            
             return addedInstance;
         }
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.cpp
index b1c5f64ef9..a21c5301aa 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.cpp
@@ -270,7 +270,7 @@ namespace AzToolsFramework
             return parentInstance;
         }
 
-        void InstanceToTemplatePropagator::AddPatchesToLink(PrefabDom& patches, Link& link)
+        void InstanceToTemplatePropagator::AddPatchesToLink(const PrefabDom& patches, Link& link)
         {
             PrefabDom& linkDom = link.GetLinkDom();
             PrefabDomValueReference linkPatchesReference =
@@ -279,7 +279,14 @@ namespace AzToolsFramework
             // This logic only covers addition of patches. If patches already exists, the given list of patches must be appended to them.
             if (!linkPatchesReference.has_value())
             {
-                linkDom.AddMember(rapidjson::StringRef(PrefabDomUtils::PatchesName), patches, linkDom.GetAllocator());
+                /*
+                If the original allocator the patches were created with gets destroyed, then the patches would become garbage in the
+                linkDom. Since we cannot guarantee the lifecycle of the patch allocators, we are doing a copy of the patches here to
+                associate them with the linkDom's allocator.
+                */
+                PrefabDom patchesCopy;
+                patchesCopy.CopyFrom(patches, linkDom.GetAllocator());
+                linkDom.AddMember(rapidjson::StringRef(PrefabDomUtils::PatchesName), patchesCopy, linkDom.GetAllocator());
             }
         }
     }
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.h
index ca1f3a7c91..9a6aad8ac1 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceToTemplatePropagator.h
@@ -41,7 +41,7 @@ namespace AzToolsFramework
 
             void ApplyPatchesToInstance(const AZ::EntityId& entityId, PrefabDom& patches, const Instance& instanceToAddPatches) override;
 
-            void AddPatchesToLink(PrefabDom& patches, Link& link);
+            void AddPatchesToLink(const PrefabDom& patches, Link& link);
 
         private:
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomTypes.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomTypes.h
index e32f817227..e897630a91 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomTypes.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomTypes.h
@@ -27,6 +27,7 @@ namespace AzToolsFramework
         using PrefabDomList = AZStd::vector<PrefabDom>;
 
         using PrefabDomReference = AZStd::optional<AZStd::reference_wrapper<PrefabDom>>;
+        using PrefabDomConstReference = AZStd::optional<AZStd::reference_wrapper<const PrefabDom>>;
         using PrefabDomValueReference = AZStd::optional<AZStd::reference_wrapper<PrefabDomValue>>;
         using PrefabDomValueConstReference = AZStd::optional<AZStd::reference_wrapper<const PrefabDomValue>>;
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp
index 14537683ef..9649818ed9 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.cpp
@@ -122,30 +122,49 @@ namespace AzToolsFramework
 
                 AZ::EntityId containerEntityId = instanceToCreate->get().GetContainerEntityId();
 
+                // Parent the entities to the container entity. Parenting the container entities of the instances passed to createPrefab
+                // will be done during the creation of links below.
+                for (AZ::Entity* topLevelEntity : entities)
+                {
+                    AZ::TransformBus::Event(topLevelEntity->GetId(), &AZ::TransformBus::Events::SetParent, containerEntityId);
+                }
+
+                // Update the template of the instance since the entities are modified since the template creation.
+                Prefab::PrefabDom serializedInstance;
+                if (Prefab::PrefabDomUtils::StoreInstanceInPrefabDom(instanceToCreate->get(), serializedInstance))
+                {
+                    m_prefabSystemComponentInterface->UpdatePrefabTemplate(instanceToCreate->get().GetTemplateId(), serializedInstance);
+                }
+
                 instanceToCreate->get().GetNestedInstances([&](AZStd::unique_ptr<Instance>& nestedInstance) {
                     AZ_Assert(nestedInstance, "Invalid nested instance found in the new prefab created.");
                     EntityOptionalReference nestedInstanceContainerEntity = nestedInstance->GetContainerEntity();
                     AZ_Assert(
                         nestedInstanceContainerEntity, "Invalid container entity found for the nested instance used in prefab creation.");
+
+                    // These link creations shouldn't be undone because that would put the template in a non-usable state if a user
+                    // chooses to instantiate the template after undoing the creation.
                     CreateLink(
                         {&nestedInstanceContainerEntity->get()}, *nestedInstance, instanceToCreate->get().GetTemplateId(),
-                        undoBatch.GetUndoBatch(), containerEntityId);
+                        undoBatch.GetUndoBatch(), containerEntityId, false);
                 });
 
+                // Create a link between the templates of the newly created instance and the instance it's being parented under.
                 CreateLink(
-                    topLevelEntities, instanceToCreate->get(), commonRootEntityOwningInstance->get().GetTemplateId(), undoBatch.GetUndoBatch(),
-                    commonRootEntityId);
+                    topLevelEntities, instanceToCreate->get(), commonRootEntityOwningInstance->get().GetTemplateId(),
+                    undoBatch.GetUndoBatch(), commonRootEntityId);
 
-                // Change top level entities to be parented to the container entity
-                // Mark them as dirty so this change is correctly applied to the template
                 for (AZ::Entity* topLevelEntity : topLevelEntities)
                 {
                     AZ::EntityId topLevelEntityId = topLevelEntity->GetId();
                     if (topLevelEntityId.IsValid())
                     {
-                        m_prefabUndoCache.UpdateCache(topLevelEntityId);
-                        undoBatch.MarkEntityDirty(topLevelEntityId);
-                        AZ::TransformBus::Event(topLevelEntityId, &AZ::TransformBus::Events::SetParent, containerEntityId);
+                        m_prefabUndoCache.UpdateCache(topLevelEntity->GetId());
+
+                        // Parenting entities would mark entities as dirty. But we want to unmark the top level entities as dirty because
+                        // if we don't, the template created would be updated and cause issues with undo operation followed by instantiation.
+                        ToolsApplicationRequests::Bus::Broadcast(
+                            &ToolsApplicationRequests::Bus::Events::RemoveDirtyEntity, topLevelEntity->GetId());
                     }
                 }
                 
@@ -296,7 +315,7 @@ namespace AzToolsFramework
 
         void PrefabPublicHandler::CreateLink(
             const EntityList& topLevelEntities, Instance& sourceInstance, TemplateId targetTemplateId,
-            UndoSystem::URSequencePoint* undoBatch, AZ::EntityId commonRootEntityId)
+            UndoSystem::URSequencePoint* undoBatch, AZ::EntityId commonRootEntityId, const bool isUndoRedoSupportNeeded)
         {
             AZ::EntityId containerEntityId = sourceInstance.GetContainerEntityId();
             AZ::Entity* containerEntity = GetEntityById(containerEntityId);
@@ -322,9 +341,19 @@ namespace AzToolsFramework
             m_instanceToTemplateInterface->GeneratePatch(patch, containerEntityDomBefore, containerEntityDomAfter);
             m_instanceToTemplateInterface->AppendEntityAliasToPatchPaths(patch, containerEntityId);
 
-            LinkId linkId = PrefabUndoHelpers::CreateLink(
-                sourceInstance.GetTemplateId(), targetTemplateId, patch, sourceInstance.GetInstanceAlias(),
-                undoBatch);
+            LinkId linkId;
+            if (isUndoRedoSupportNeeded)
+            {
+                linkId = PrefabUndoHelpers::CreateLink(
+                    sourceInstance.GetTemplateId(), targetTemplateId, AZStd::move(patch), sourceInstance.GetInstanceAlias(), undoBatch);
+            }
+            else
+            {
+                linkId = m_prefabSystemComponentInterface->CreateLink(
+                    targetTemplateId, sourceInstance.GetTemplateId(), sourceInstance.GetInstanceAlias(), patch,
+                    InvalidLinkId);
+                m_prefabSystemComponentInterface->PropagateTemplateChanges(targetTemplateId);
+            }
 
             sourceInstance.SetLinkId(linkId);
 
@@ -357,7 +386,7 @@ namespace AzToolsFramework
             patchesCopyForUndoSupport.CopyFrom(nestedInstanceLinkPatches->get(), patchesCopyForUndoSupport.GetAllocator());
             PrefabUndoHelpers::RemoveLink(
                 sourceInstance->GetTemplateId(), targetTemplateId, sourceInstance->GetInstanceAlias(), sourceInstance->GetLinkId(),
-                patchesCopyForUndoSupport, undoBatch);
+                AZStd::move(patchesCopyForUndoSupport), undoBatch);
         }
 
         PrefabOperationResult PrefabPublicHandler::SavePrefab(AZ::IO::Path filePath)
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.h
index 03b3827328..138bc84aa0 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicHandler.h
@@ -77,10 +77,11 @@ namespace AzToolsFramework
              * \param targetInstance The id of the target template.
              * \param undoBatch The undo batch to set as parent for this create link action.
              * \param commonRootEntityId The id of the entity that the source instance should be parented under.
+             * \param isUndoRedoSupportNeeded The flag indicating whether the link should be created with undo/redo support or not.
              */
             void CreateLink(
                 const EntityList& topLevelEntities, Instance& sourceInstance, TemplateId targetTemplateId,
-                UndoSystem::URSequencePoint* undoBatch, AZ::EntityId commonRootEntityId);
+                UndoSystem::URSequencePoint* undoBatch, AZ::EntityId commonRootEntityId, const bool isUndoRedoSupportNeeded = true);
 
             /**
              * Removes the link between template of the sourceInstance and the template corresponding to targetTemplateId.
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
index 3910e80f75..c4e6415b02 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
@@ -583,7 +583,7 @@ namespace AzToolsFramework
             const TemplateId& linkTargetId,
             const TemplateId& linkSourceId,
             const InstanceAlias& instanceAlias,
-            const PrefabDomReference linkPatch,
+            const PrefabDomConstReference linkPatches,
             const LinkId& linkId)
         {
             if (linkTargetId == InvalidTemplateId)
@@ -667,9 +667,9 @@ namespace AzToolsFramework
                 rapidjson::StringRef(PrefabDomUtils::SourceName), rapidjson::StringRef(sourceTemplate.GetFilePath().c_str()),
                 newLink.GetLinkDom().GetAllocator());
 
-            if (linkPatch && linkPatch->get().IsArray() && !(linkPatch->get().Empty()))
+            if (linkPatches && linkPatches->get().IsArray() && !(linkPatches->get().Empty()))
             {
-                m_instanceToTemplatePropagator.AddPatchesToLink(linkPatch.value(), newLink);
+                m_instanceToTemplatePropagator.AddPatchesToLink(linkPatches.value(), newLink);
             }
 
             //update the target template dom to have the proper values for the source template dom
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h
index 30d03ba2ef..0a9a450f64 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h
@@ -156,7 +156,7 @@ namespace AzToolsFramework
                 const TemplateId& linkTargetId,
                 const TemplateId& linkSourceId,
                 const InstanceAlias& instanceAlias,
-                const PrefabDomReference linkPatch,
+                const PrefabDomConstReference linkPatches,
                 const LinkId& linkId = InvalidLinkId) override;
 
             /**
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h
index 6491d67401..f47941254a 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h
@@ -43,9 +43,9 @@ namespace AzToolsFramework
                 PrefabDomValue::MemberIterator& instanceIterator, InstanceOptionalReference instance) = 0;
 
             //creates a new Link
-            virtual LinkId CreateLink(const TemplateId& linkTargetId, const TemplateId& linkSourceId,
-                const InstanceAlias& instanceAlias, const PrefabDomReference linkPatch,
-                const LinkId& linkId = InvalidLinkId) = 0;
+            virtual LinkId CreateLink(
+                const TemplateId& linkTargetId, const TemplateId& linkSourceId, const InstanceAlias& instanceAlias,
+                const PrefabDomConstReference linkPatches, const LinkId& linkId = InvalidLinkId) = 0;
 
             virtual void RemoveLink(const LinkId& linkId) = 0;
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.cpp
index ad0cdc166a..aadcdcdea0 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.cpp
@@ -124,7 +124,7 @@ namespace AzToolsFramework
             const TemplateId& targetId,
             const TemplateId& sourceId,
             const InstanceAlias& instanceAlias,
-            PrefabDomReference linkPatches,
+            PrefabDom linkPatches,
             const LinkId linkId)
         {
             m_targetId = targetId;
@@ -132,10 +132,7 @@ namespace AzToolsFramework
             m_instanceAlias = instanceAlias;
             m_linkId = linkId;
 
-            if (linkPatches.has_value())
-            {
-                m_linkPatches = AZStd::move(linkPatches->get());
-            }
+            m_linkPatches = AZStd::move(linkPatches);
 
             //if linkId is invalid, set as ADD
             if (m_linkId == InvalidLinkId)
@@ -228,7 +225,7 @@ namespace AzToolsFramework
 
             if (link.has_value())
             {
-                m_linkDomPrevious = AZStd::move(link->get().GetLinkDom());
+                m_linkDomPrevious.CopyFrom(link->get().GetLinkDom(), m_linkDomPrevious.GetAllocator());
             }
 
             //get source templateDom
@@ -275,7 +272,7 @@ namespace AzToolsFramework
             if (patchesIter == m_linkDomNext.MemberEnd())
             {
                 m_linkDomNext.AddMember(
-                    rapidjson::GenericStringRef(PrefabDomUtils::PatchesName), patchLinkCopy, m_linkDomNext.GetAllocator());
+                    rapidjson::GenericStringRef(PrefabDomUtils::PatchesName), AZStd::move(patchLinkCopy), m_linkDomNext.GetAllocator());
             }
             else
             {
@@ -303,9 +300,7 @@ namespace AzToolsFramework
                 return;
             }
 
-            PrefabDom moveLink;
-            moveLink.CopyFrom(linkDom, linkDom.GetAllocator());
-            link->get().GetLinkDom() = AZStd::move(moveLink);
+            link->get().SetLinkDom(linkDom);
 
             //propagate the link changes
             link->get().UpdateTarget();
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.h
index 49bae4eda0..33d9e5ad33 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndo.h
@@ -101,7 +101,7 @@ namespace AzToolsFramework
                 const TemplateId& targetId,
                 const TemplateId& sourceId,
                 const InstanceAlias& instanceAlias,
-                PrefabDomReference linkPatches = PrefabDomReference(),
+                PrefabDom linkPatches = PrefabDom(),
                 const LinkId linkId = InvalidLinkId);
 
             void Undo() override;
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.cpp
index 24eb71e055..5ba8d3c940 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.cpp
@@ -34,11 +34,11 @@ namespace AzToolsFramework
             }
 
             LinkId CreateLink(
-                TemplateId sourceTemplateId, TemplateId targetTemplateId, PrefabDomReference patch,
+                TemplateId sourceTemplateId, TemplateId targetTemplateId, PrefabDom patch,
                 const InstanceAlias& instanceAlias, UndoSystem::URSequencePoint* undoBatch)
             {
                 auto linkAddUndo = aznew PrefabUndoInstanceLink("Create Link");
-                linkAddUndo->Capture(targetTemplateId, sourceTemplateId, instanceAlias, patch, InvalidLinkId);
+                linkAddUndo->Capture(targetTemplateId, sourceTemplateId, instanceAlias, AZStd::move(patch), InvalidLinkId);
                 linkAddUndo->SetParent(undoBatch);
                 linkAddUndo->Redo();
 
@@ -47,10 +47,10 @@ namespace AzToolsFramework
 
             void RemoveLink(
                 TemplateId sourceTemplateId, TemplateId targetTemplateId, const InstanceAlias& instanceAlias, LinkId linkId,
-                PrefabDomReference linkPatches, UndoSystem::URSequencePoint* undoBatch)
+                PrefabDom linkPatches, UndoSystem::URSequencePoint* undoBatch)
             {
                 auto linkRemoveUndo = aznew PrefabUndoInstanceLink("Remove Link");
-                linkRemoveUndo->Capture(targetTemplateId, sourceTemplateId, instanceAlias, linkPatches, linkId);
+                linkRemoveUndo->Capture(targetTemplateId, sourceTemplateId, instanceAlias, AZStd::move(linkPatches), linkId);
                 linkRemoveUndo->SetParent(undoBatch);
                 linkRemoveUndo->Redo();
             }
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.h
index 6429df3b04..17cf7f52c1 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabUndoHelpers.h
@@ -22,11 +22,11 @@ namespace AzToolsFramework
                 const Instance& instance, AZStd::string_view undoMessage, const PrefabDom& instanceDomBeforeUpdate,
                 UndoSystem::URSequencePoint* undoBatch);
             LinkId CreateLink(
-                TemplateId sourceTemplateId, TemplateId targetTemplateId, PrefabDomReference patch,
+                TemplateId sourceTemplateId, TemplateId targetTemplateId, PrefabDom patch,
                 const InstanceAlias& instanceAlias, UndoSystem::URSequencePoint* undoBatch);
             void RemoveLink(
                 TemplateId sourceTemplateId, TemplateId targetTemplateId, const InstanceAlias& instanceAlias, LinkId linkId,
-                PrefabDomReference linkPatches, UndoSystem::URSequencePoint* undoBatch);
+                PrefabDom linkPatches, UndoSystem::URSequencePoint* undoBatch);
         }
     } // namespace Prefab
 } // namespace AzToolsFramework
diff --git a/Code/Framework/AzToolsFramework/Tests/Prefab/PrefabUndoLinkTests.cpp b/Code/Framework/AzToolsFramework/Tests/Prefab/PrefabUndoLinkTests.cpp
index 2122b116d8..3d540a7a95 100644
--- a/Code/Framework/AzToolsFramework/Tests/Prefab/PrefabUndoLinkTests.cpp
+++ b/Code/Framework/AzToolsFramework/Tests/Prefab/PrefabUndoLinkTests.cpp
@@ -120,7 +120,7 @@ namespace UnitTest
 
         //create an undo node to apply the patch and prep for undo
         PrefabUndoInstanceLink undoInstanceLinkNode("Undo Link Patch");
-        undoInstanceLinkNode.Capture(rootTemplateId, nestedTemplateId, aliases[0], patch, InvalidLinkId);
+        undoInstanceLinkNode.Capture(rootTemplateId, nestedTemplateId, aliases[0], AZStd::move(patch), InvalidLinkId);
         undoInstanceLinkNode.Redo();
         m_instanceUpdateExecutorInterface->UpdateTemplateInstancesInQueue();
 
@@ -196,7 +196,7 @@ namespace UnitTest
 
         //create an undo node to apply the patch and prep for undo
         PrefabUndoInstanceLink undoInstanceLinkNode("Undo Link Patch");
-        undoInstanceLinkNode.Capture(rootTemplateId, nestedTemplateId, aliases[0], linkPatch, InvalidLinkId);
+        undoInstanceLinkNode.Capture(rootTemplateId, nestedTemplateId, aliases[0], AZStd::move(linkPatch), InvalidLinkId);
         undoInstanceLinkNode.Redo();
         m_instanceUpdateExecutorInterface->UpdateTemplateInstancesInQueue();
 
diff --git a/Code/Tools/SerializeContextTools/Application.cpp b/Code/Tools/SerializeContextTools/Application.cpp
index 2ab9847aa6..da0cca5ca6 100644
--- a/Code/Tools/SerializeContextTools/Application.cpp
+++ b/Code/Tools/SerializeContextTools/Application.cpp
@@ -16,12 +16,23 @@
 #include <AzCore/StringFunc/StringFunc.h>
 #include <AzCore/Utils/Utils.h>
 
+#include <AzToolsFramework/Thumbnails/ThumbnailerNullComponent.h>
+
 namespace AZ
 {
+    // SerializeContextTools is a full ToolsApplication that will load a project's Gem DLLs and initialize the system components.
+    // This level of initialization is required to get all the serialization contexts and asset handlers registered, so that when
+    // data transformations take place, none of the data is dropped due to not being recognized.
+    // However, as a simplification, anything requiring Python or Qt is skipped during initialization:
+    // - The gem_autoload.serializecontexttools.setreg file disables autoload for QtForPython, EditorPythonBindings, and PythonAssetBuilder
+    // - The system component initialization below uses ThumbnailerNullComponent so that other components relying on a ThumbnailService
+    //   can still be started up, but the thumbnail service itself won't do anything.  The real ThumbnailerComponent uses Qt, which is why
+    //   it isn't used.
+
     namespace SerializeContextTools
     {
         Application::Application(int argc, char** argv)
-            : AZ::ComponentApplication(argc, argv)
+            : AzToolsFramework::ToolsApplication(&argc, &argv)
         {
             AZ::IO::FixedMaxPath projectPath = AZ::Utils::GetProjectPath();
             if (projectPath.empty())
@@ -51,14 +62,27 @@ namespace AZ
             else
             {
                 AZ::SettingsRegistryInterface::Specializations projectSpecializations{ projectName };
-                AZ::IO::PathView configFilenameStem = m_configFilePath.Stem();
-                if (AZ::StringFunc::Equal(configFilenameStem.Native(),  "Editor"))
+
+                // If a project specialization has been passed in via the command line, use it.
+                if (size_t specializationCount = m_commandLine.GetNumSwitchValues("specializations"); specializationCount > 0)
                 {
-                    projectSpecializations.Append("editor");
+                    for (size_t specializationIndex = 0; specializationIndex < specializationCount; ++specializationIndex)
+                    {
+                        projectSpecializations.Append(m_commandLine.GetSwitchValue("specializations", specializationIndex));
+                    }
                 }
-                else if (AZ::StringFunc::Equal(configFilenameStem.Native(), "Game"))
+                // Otherwise, if a config file was passed in, auto-set the specialization based on the config file name.
+                else
                 {
-                    projectSpecializations.Append(projectName + "_GameLauncher");
+                    AZ::IO::PathView configFilenameStem = m_configFilePath.Stem();
+                    if (AZ::StringFunc::Equal(configFilenameStem.Native(), "Editor"))
+                    {
+                        projectSpecializations.Append("editor");
+                    }
+                    else if (AZ::StringFunc::Equal(configFilenameStem.Native(), "Game"))
+                    {
+                        projectSpecializations.Append(projectName + "_GameLauncher");
+                    }
                 }
 
                 // Used the project specializations to merge the build dependencies *.setreg files
@@ -78,5 +102,14 @@ namespace AZ
             AZ::ComponentApplication::SetSettingsRegistrySpecializations(specializations);
             specializations.Append("serializecontexttools");
         }
+
+        AZ::ComponentTypeList Application::GetRequiredSystemComponents() const
+        {
+            // Use all of the default system components, but also add in the ThumbnailerNullComponent so that components requiring
+            // a ThumbnailService can still be started up.
+            AZ::ComponentTypeList components = AzToolsFramework::ToolsApplication::GetRequiredSystemComponents();
+            components.emplace_back(azrtti_typeid<AzToolsFramework::Thumbnailer::ThumbnailerNullComponent>());
+            return components;
+        }
     } // namespace SerializeContextTools
 } // namespace AZ
diff --git a/Code/Tools/SerializeContextTools/Application.h b/Code/Tools/SerializeContextTools/Application.h
index 63bc1892ed..b1b818e27d 100644
--- a/Code/Tools/SerializeContextTools/Application.h
+++ b/Code/Tools/SerializeContextTools/Application.h
@@ -12,7 +12,7 @@
 
 #pragma once
 
-#include <AzCore/Component/ComponentApplication.h>
+#include <AzToolsFramework/Application/ToolsApplication.h>
 #include <AzCore/IO/Path/Path.h>
 
 namespace AZ
@@ -20,13 +20,14 @@ namespace AZ
     namespace SerializeContextTools
     {
         class Application final
-            : public AZ::ComponentApplication
+            : public AzToolsFramework::ToolsApplication
         {
         public:
             Application(int argc, char** argv);
             ~Application() override = default;
             
             const char* GetConfigFilePath() const;
+            AZ::ComponentTypeList GetRequiredSystemComponents() const override;
 
         protected:
             void SetSettingsRegistrySpecializations(AZ::SettingsRegistryInterface::Specializations& specializations) override;
diff --git a/Code/Tools/SerializeContextTools/CMakeLists.txt b/Code/Tools/SerializeContextTools/CMakeLists.txt
index 1a993de53c..e73fd014ab 100644
--- a/Code/Tools/SerializeContextTools/CMakeLists.txt
+++ b/Code/Tools/SerializeContextTools/CMakeLists.txt
@@ -29,4 +29,6 @@ ly_add_target(
     BUILD_DEPENDENCIES
         PRIVATE
             AZ::AzCore
+            AZ::AzFramework
+            AZ::AzToolsFramework
 )
diff --git a/Code/Tools/SerializeContextTools/Utilities.cpp b/Code/Tools/SerializeContextTools/Utilities.cpp
index 127f833f6b..1c50466443 100644
--- a/Code/Tools/SerializeContextTools/Utilities.cpp
+++ b/Code/Tools/SerializeContextTools/Utilities.cpp
@@ -236,7 +236,6 @@ namespace AZ::SerializeContextTools
         AZ::IO::MemoryStream stream(data.data(), fileLength);
 
         ObjectStream::FilterDescriptor filter;
-        filter.m_flags = ObjectStream::FILTERFLAG_IGNORE_UNKNOWN_CLASSES;
         // Never load dependencies. That's another file that would need to be processed
         // separately from this one.
         filter.m_assetCB = AZ::Data::AssetFilterNoAssetLoading;
diff --git a/Code/Tools/SerializeContextTools/main.cpp b/Code/Tools/SerializeContextTools/main.cpp
index ee505c9cc0..fb2dc442ed 100644
--- a/Code/Tools/SerializeContextTools/main.cpp
+++ b/Code/Tools/SerializeContextTools/main.cpp
@@ -23,6 +23,8 @@ void PrintHelp()
     AZ_Printf("Help", "Serialize Context Tool\n");
     AZ_Printf("Help", "  <action> [-config] <action arguments>*\n");
     AZ_Printf("Help", "  [opt] -config=<path>: optional path to application's config file. Default is 'config/editor.xml'.\n");
+    AZ_Printf("Help", "  [opt] -specializations=<prefix>: <comma or semicolon>-separated list of optional Registry project\n");
+    AZ_Printf("Help", "         specializations, such as 'editor' or 'game' or 'editor;test'.  Default is none. \n");
     AZ_Printf("Help", "\n");
     AZ_Printf("Help", "  'help': Print this help\n");
     AZ_Printf("Help", "    example: 'help'\n");
@@ -81,11 +83,7 @@ int main(int argc, char** argv)
     bool result = false;
     Application application(argc, argv);
     AZ::ComponentApplication::StartupParameters startupParameters;
-    startupParameters.m_loadDynamicModules = false;
-    application.Create({}, startupParameters);
-    // Load the DynamicModules after the Application starts to prevent Gem System Components
-    // from activating
-    application.LoadDynamicModules();
+    application.Start({}, startupParameters);
 
     const AZ::CommandLine* commandLine = application.GetAzCommandLine();
     if (commandLine->GetNumMiscValues() < 1)
diff --git a/Gems/Atom/Feature/Common/Code/Source/Decals/AsyncLoadTracker.h b/Gems/Atom/Feature/Common/Code/Source/Decals/AsyncLoadTracker.h
index ec35c4b51f..a3fff7b91e 100644
--- a/Gems/Atom/Feature/Common/Code/Source/Decals/AsyncLoadTracker.h
+++ b/Gems/Atom/Feature/Common/Code/Source/Decals/AsyncLoadTracker.h
@@ -23,7 +23,9 @@ namespace AZ
         {
         public:
 
-            void TrackAssetLoad(const FeatureProcessorHandle handle, const AZ::Data::AssetId asset)
+            using MaterialAssetPtr = AZ::Data::Asset<AZ::RPI::MaterialAsset>;
+
+            void TrackAssetLoad(const FeatureProcessorHandle handle, const MaterialAssetPtr asset)
             {
                 if (IsAssetLoading(handle))
                 {
@@ -77,12 +79,12 @@ namespace AZ
             {
                 const auto asset = EraseFromInFlightHandles(handle);
 
-                AZ_Assert(m_inFlightHandlesByAsset.count(asset) > 0, "AsyncLoadTracker in a bad state");
-                auto& handleList = m_inFlightHandlesByAsset[asset];
+                AZ_Assert(m_inFlightHandlesByAsset.count(asset.GetId()) > 0, "AsyncLoadTracker in a bad state");
+                auto& handleList = m_inFlightHandlesByAsset[asset.GetId()];
                 EraseFromVector(handleList, handle);
                 if (handleList.empty())
                 {
-                    m_inFlightHandlesByAsset.erase(asset);
+                    m_inFlightHandlesByAsset.erase(asset.GetId());
                 }
             }
 
@@ -104,14 +106,14 @@ namespace AZ
                 vec.pop_back();
             }
 
-            void Add(const FeatureProcessorHandle handle, const AZ::Data::AssetId asset)
+            void Add(const FeatureProcessorHandle handle, const MaterialAssetPtr asset)
             {
                 AZ_Assert(m_inFlightHandles.count(handle) == 0, "AsyncLoadTracker::Add() - told to add a handle that was already being tracked.");
-                m_inFlightHandlesByAsset[asset].push_back(handle);
+                m_inFlightHandlesByAsset[asset.GetId()].push_back(handle);
                 m_inFlightHandles[handle] = asset;
             }
 
-            AZ::Data::AssetId EraseFromInFlightHandles(const FeatureProcessorHandle handle)
+            MaterialAssetPtr EraseFromInFlightHandles(const FeatureProcessorHandle handle)
             {
                 const auto iter = m_inFlightHandles.find(handle);
                 AZ_Assert(iter != m_inFlightHandles.end(), "Told to remove handle that was not present");
@@ -125,7 +127,7 @@ namespace AZ
 
             // Hash table that tracks the reverse of the m_inFlightHandlesByAsset hash table.
             // i.e. for each object, it stores what asset that it needs.
-            AZStd::unordered_map<FeatureProcessorHandle, AZ::Data::AssetId> m_inFlightHandles;
+            AZStd::unordered_map<FeatureProcessorHandle, MaterialAssetPtr> m_inFlightHandles;
         };
     }
 }
diff --git a/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.cpp b/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.cpp
index 4000df646d..24857f8d65 100644
--- a/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.cpp
+++ b/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.cpp
@@ -85,7 +85,6 @@ namespace AZ
 
             m_decalData.Clear();
             m_decalBufferHandler.Release();
-            m_materialAssets.clear();
         }
 
         DecalTextureArrayFeatureProcessor::DecalHandle DecalTextureArrayFeatureProcessor::AcquireDecal()
@@ -410,7 +409,7 @@ namespace AZ
             int iter = m_textureArrayList.begin();
             while (iter != -1)
             {
-                const auto packedTexture = m_textureArrayList[iter].second.GetPackedTexture();
+                const auto& packedTexture = m_textureArrayList[iter].second.GetPackedTexture();
                 view->GetShaderResourceGroup()->SetImage(m_decalTextureArrayIndices[iter], packedTexture);
                 iter = m_textureArrayList.next(iter);
             }
@@ -482,22 +481,15 @@ namespace AZ
             return material;
         }
 
-        void DecalTextureArrayFeatureProcessor::QueueMaterialLoadForDecal(const AZ::Data::AssetId material, const DecalHandle handle)
+        void DecalTextureArrayFeatureProcessor::QueueMaterialLoadForDecal(const AZ::Data::AssetId materialId, const DecalHandle handle)
         {
-            // Note that another decal might have already queued this material for loading
-            if (m_materialLoadTracker.IsAssetLoading(material))
-            {
-                m_materialLoadTracker.TrackAssetLoad(handle, material);
-                return;
-            }
+            const auto materialAsset = QueueMaterialAssetLoad(materialId);
 
-            const auto materialAsset = QueueMaterialAssetLoad(material);
-            m_materialAssets.emplace(material, materialAsset);
-            m_materialLoadTracker.TrackAssetLoad(handle, material);
+            m_materialLoadTracker.TrackAssetLoad(handle, materialAsset);
 
             if (materialAsset.IsLoading())
             {
-                AZ::Data::AssetBus::MultiHandler::BusConnect(material);
+                AZ::Data::AssetBus::MultiHandler::BusConnect(materialId);
             }
             else if (materialAsset.IsReady())
             {
diff --git a/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.h b/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.h
index 825e461fc2..5301fcc61b 100644
--- a/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.h
+++ b/Gems/Atom/Feature/Common/Code/Source/Decals/DecalTextureArrayFeatureProcessor.h
@@ -136,11 +136,8 @@ namespace AZ
             GpuBufferHandler m_decalBufferHandler;
 
             AsyncLoadTracker<DecalHandle> m_materialLoadTracker;
-
             AZStd::unordered_map< AZ::Data::AssetId, DecalLocationAndUseCount> m_materialToTextureArrayLookupTable;
 
-            AZStd::unordered_map<AZ::Data::AssetId, AZ::Data::Asset<AZ::RPI::MaterialAsset>> m_materialAssets;
-
             bool m_deviceBufferNeedsUpdate = false;
         };
     } // namespace Render
diff --git a/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Linux/additional_linux_tool_deps.cmake b/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Linux/additional_linux_tool_deps.cmake
index 908417b1f8..c76527afa0 100644
--- a/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Linux/additional_linux_tool_deps.cmake
+++ b/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Linux/additional_linux_tool_deps.cmake
@@ -10,6 +10,9 @@
 #
 
 set(LY_RUNTIME_DEPENDENCIES
+    Gem::Atom_RHI_Vulkan.Private
+    Gem::Atom_RHI_DX12.Private
+    Gem::Atom_RHI_Metal.Private
     Gem::Atom_RHI_Vulkan.Builders
     Gem::Atom_RHI_DX12.Builders
     Gem::Atom_RHI_Metal.Builders
diff --git a/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Mac/additional_mac_tool_deps.cmake b/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Mac/additional_mac_tool_deps.cmake
index 445a416a68..81046d3071 100644
--- a/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Mac/additional_mac_tool_deps.cmake
+++ b/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Mac/additional_mac_tool_deps.cmake
@@ -10,6 +10,9 @@
 #
 
 set(LY_RUNTIME_DEPENDENCIES
+    Gem::Atom_RHI_Metal.Private
+    Gem::Atom_RHI_Vulkan.Private
+    Gem::Atom_RHI_DX12.Private
     Gem::Atom_RHI_Metal.Builders
     Gem::Atom_RHI_Vulkan.Builders
     Gem::Atom_RHI_DX12.Builders
diff --git a/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Windows/additional_windows_tool_deps.cmake b/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Windows/additional_windows_tool_deps.cmake
index 908417b1f8..c76527afa0 100644
--- a/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Windows/additional_windows_tool_deps.cmake
+++ b/Gems/AtomLyIntegration/AtomBridge/Code/Source/Platform/Windows/additional_windows_tool_deps.cmake
@@ -10,6 +10,9 @@
 #
 
 set(LY_RUNTIME_DEPENDENCIES
+    Gem::Atom_RHI_Vulkan.Private
+    Gem::Atom_RHI_DX12.Private
+    Gem::Atom_RHI_Metal.Private
     Gem::Atom_RHI_Vulkan.Builders
     Gem::Atom_RHI_DX12.Builders
     Gem::Atom_RHI_Metal.Builders
diff --git a/Registry/gem_autoload.serializecontexttools.setreg b/Registry/gem_autoload.serializecontexttools.setreg
new file mode 100644
index 0000000000..1f4a8931c5
--- /dev/null
+++ b/Registry/gem_autoload.serializecontexttools.setreg
@@ -0,0 +1,15 @@
+{
+  "Amazon": {
+    "Gems": {
+      "QtForPython.Editor": {
+        "AutoLoad": false
+      },
+      "EditorPythonBindings.Editor": {
+        "AutoLoad": false
+      },
+      "PythonAssetBuilder.Editor": {
+        "AutoLoad": false
+      }
+    }
+  }
+}
diff --git a/Tools/LyTestTools/ly_test_tools/log/log_monitor.py b/Tools/LyTestTools/ly_test_tools/log/log_monitor.py
index ca3cd24303..ea3991342a 100755
--- a/Tools/LyTestTools/ly_test_tools/log/log_monitor.py
+++ b/Tools/LyTestTools/ly_test_tools/log/log_monitor.py
@@ -44,7 +44,7 @@ def check_exact_match(line, expected_line):
 
     # Look for either start of line or whitespace, then the expected_line, then either end of the line or whitespace.
     # This way we don't partial match inside of a string.  So for example, 'foo' matches 'foo bar' but not 'foobar'
-    regex_pattern = re.compile("(^|\\s){}($|\\s)".format(re.escape(expected_line)))
+    regex_pattern = re.compile("(^|\\s){}($|\\s)".format(re.escape(expected_line)), re.UNICODE)
     if regex_pattern.search(line) is not None:
         return expected_line
 
@@ -125,7 +125,7 @@ class LogMonitor(object):
         self.py_log = ""
         try:
             logger.debug("Monitoring log file in '{}' ".format(self.log_file_path))
-            with open(self.log_file_path, mode='r') as log:
+            with open(self.log_file_path, mode='r', encoding='utf-8') as log:
                 logger.info(
                     "Monitoring log file '{}' for '{}' seconds".format(self.log_file_path, timeout))
                     
diff --git a/Tools/LyTestTools/tests/unit/test_log_monitor.py b/Tools/LyTestTools/tests/unit/test_log_monitor.py
index 5be2b48d8b..2dd588f9ff 100755
--- a/Tools/LyTestTools/tests/unit/test_log_monitor.py
+++ b/Tools/LyTestTools/tests/unit/test_log_monitor.py
@@ -98,6 +98,16 @@ class TestLogMonitor(object):
         under_test = ly_test_tools.log.log_monitor.check_exact_match(line, expected_line)
         assert under_test == expected_line
 
+    @mock.patch('os.path.exists', mock.MagicMock(return_value=True))
+    def test_Monitor_UTF8StringsPresentAndExpected_Success(self):
+        mock_file = io.StringIO('gr\xc3\xb6\xc3\x9feren pr\xc3\xbcfung \xd1\x82\xd0\xb5\xd1\x81\xd1\x82\xd1\x83\xd0\xb2\xd0\xb0\xd0\xbd\xd0\xbd\xd1\x8f\n\xc3\x80\xc3\x88\xc3\x8c\xc3\x92\xc3\x99\n\xc3\x85lpha\xc3\x9fravo\xc3\xa7harlie\n')
+        mock_launcher.is_alive.side_effect = [True, True, True, False]
+
+        with mock.patch('ly_test_tools.log.log_monitor.open', return_value=mock_file, create=True):
+            mock_log_monitor().monitor_log_for_lines(['gr\xc3\xb6\xc3\x9feren pr\xc3\xbcfung \xd1\x82\xd0\xb5\xd1\x81\xd1\x82\xd1\x83\xd0\xb2\xd0\xb0\xd0\xbd\xd0\xbd\xd1\x8f',
+                                                      '\xc3\x80\xc3\x88\xc3\x8c\xc3\x92\xc3\x99',
+                                                      '\xc3\x85lpha\xc3\x9fravo\xc3\xa7harlie'])
+
     @mock.patch('os.path.exists', mock.MagicMock(return_value=True))
     def test_Monitor_AllLinesFound_Success(self):
         mock_file = io.StringIO(u'a\nb\nc\n')
diff --git a/scripts/build/Platform/iOS/build_config.json b/scripts/build/Platform/iOS/build_config.json
index 4566d243ee..bb5f2d2fe6 100644
--- a/scripts/build/Platform/iOS/build_config.json
+++ b/scripts/build/Platform/iOS/build_config.json
@@ -27,7 +27,7 @@
     "PARAMETERS": {
       "CONFIGURATION": "debug",
       "OUTPUT_DIRECTORY": "build/ios",
-      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=TRUE -DO3DE_HOME_PATH=\"!WORKSPACE!/home\" -DO3DE_REGISTER_ENGINE_PATH=\"!WORKSPACE!/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
+      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=TRUE -DO3DE_HOME_PATH=\"${WORKSPACE}/home\" -DO3DE_REGISTER_ENGINE_PATH=\"${WORKSPACE}/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
       "CMAKE_LY_PROJECTS": "AutomatedTesting",
       "CMAKE_TARGET": "ALL_BUILD",
       "CMAKE_NATIVE_BUILD_ARGS": "-destination generic/platform=iOS"
@@ -44,7 +44,7 @@
     "PARAMETERS": {
       "CONFIGURATION": "profile",
       "OUTPUT_DIRECTORY": "build/ios",
-      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\"  -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=TRUE -DO3DE_HOME_PATH=\"!WORKSPACE!/home\" -DO3DE_REGISTER_ENGINE_PATH=\"!WORKSPACE!/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
+      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\"  -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=TRUE -DO3DE_HOME_PATH=\"${WORKSPACE}/home\" -DO3DE_REGISTER_ENGINE_PATH=\"${WORKSPACE}/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
       "CMAKE_LY_PROJECTS": "AutomatedTesting",
       "CMAKE_TARGET": "ALL_BUILD",
       "CMAKE_NATIVE_BUILD_ARGS": "-destination generic/platform=iOS"
@@ -60,7 +60,7 @@
     "PARAMETERS": {
       "CONFIGURATION": "profile",
       "OUTPUT_DIRECTORY": "build/ios",
-      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\"  -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=FALSE -DO3DE_HOME_PATH=\"!WORKSPACE!/home\" -DO3DE_REGISTER_ENGINE_PATH=\"!WORKSPACE!/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
+      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\"  -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=FALSE -DO3DE_HOME_PATH=\"${WORKSPACE}/home\" -DO3DE_REGISTER_ENGINE_PATH=\"${WORKSPACE}/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
       "CMAKE_LY_PROJECTS": "AutomatedTesting",
       "CMAKE_TARGET": "ALL_BUILD",
       "CMAKE_NATIVE_BUILD_ARGS": "-destination generic/platform=iOS"
@@ -94,7 +94,7 @@
     "PARAMETERS": {
       "CONFIGURATION": "release",
       "OUTPUT_DIRECTORY": "build/ios",
-      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\"  -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=TRUE -DO3DE_HOME_PATH=\"!WORKSPACE!/home\" -DO3DE_REGISTER_ENGINE_PATH=\"!WORKSPACE!/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
+      "CMAKE_OPTIONS": "-G Xcode -DCMAKE_TOOLCHAIN_FILE=cmake/Platform/iOS/Toolchain_ios.cmake -DLY_MONOLITHIC_GAME=TRUE -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_REQUIRED=FALSE -DLY_IOS_CODE_SIGNING_IDENTITY=\"\"  -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGN_ENTITLEMENTS=\"\" -DCMAKE_XCODE_ATTRIBUTE_CODE_SIGNING_ALLOWED=FALSE -DLY_UNITY_BUILD=TRUE -DO3DE_HOME_PATH=\"${WORKSPACE}/home\" -DO3DE_REGISTER_ENGINE_PATH=\"${WORKSPACE}/o3de\" -DO3DE_REGISTER_THIS_ENGINE=TRUE",
       "CMAKE_LY_PROJECTS": "AutomatedTesting",
       "CMAKE_TARGET": "ALL_BUILD",
       "CMAKE_NATIVE_BUILD_ARGS": "-destination generic/platform=iOS"
diff --git a/scripts/build/build_node/Platform/Linux/install-ubuntu-awscli.sh b/scripts/build/build_node/Platform/Linux/install-ubuntu-awscli.sh
index 4c2f350859..8649f61fd1 100755
--- a/scripts/build/build_node/Platform/Linux/install-ubuntu-awscli.sh
+++ b/scripts/build/build_node/Platform/Linux/install-ubuntu-awscli.sh
@@ -38,7 +38,7 @@ then
     ./aws/install
     rm -rf ./aws
 else
-    AWS_CLI_VERSION=`aws --version | awk '{print $1}' | awk -F/ '{print $2}'`
+    AWS_CLI_VERSION=$(aws --version | awk '{print $1}' | awk -F/ '{print $2}')
     echo AWS CLI \(version $AWS_CLI_VERSION\) already installed
 fi
 
diff --git a/scripts/build/build_node/Platform/Linux/install-ubuntu-build-tools.sh b/scripts/build/build_node/Platform/Linux/install-ubuntu-build-tools.sh
index fd7b59592a..6fea3b03fa 100755
--- a/scripts/build/build_node/Platform/Linux/install-ubuntu-build-tools.sh
+++ b/scripts/build/build_node/Platform/Linux/install-ubuntu-build-tools.sh
@@ -26,7 +26,7 @@ then
     exit 1
 fi
 
-UBUNTU_DISTRO="`lsb_release -c | awk '{print $2}'`"
+UBUNTU_DISTRO="$(lsb_release -c | awk '{print $2}')"
 if [ "$UBUNTU_DISTRO" == "bionic" ]
 then
     echo "Setup for Ubuntu 18.04 LTS ($UBUNTU_DISTRO)"
@@ -53,7 +53,7 @@ fi
 # will install it from the bionic distro manually into focal. This is needed since Ubuntu 20.04 supports
 # python 3.8 out of the box, but we are using 3.7
 #
-LIBFFI6_COUNT=`apt list --installed 2>/dev/null | grep libffi6 | wc -l`
+LIBFFI6_COUNT=$(apt list --installed 2>/dev/null | grep libffi6 | wc -l)
 if [ "$UBUNTU_DISTRO" == "focal" ] && [ $LIBFFI6_COUNT -eq 0 ]
 then
     echo "Installing libffi for Ubuntu 20.04"
@@ -90,7 +90,7 @@ fi
 # Add the kitware repository for cmake if necessary
 #
 
-KITWARE_REPO_COUNT=`cat /etc/apt/sources.list | grep ^deb | grep https://apt.kitware.com/ubuntu/ | wc -l`
+KITWARE_REPO_COUNT=$(cat /etc/apt/sources.list | grep ^deb | grep https://apt.kitware.com/ubuntu/ | wc -l)
 
 if [ $KITWARE_REPO_COUNT -eq 0 ]
 then
@@ -121,33 +121,34 @@ PACKAGE_FILE_LIST=package-list.ubuntu-$UBUNTU_DISTRO.txt
 echo Reading package list $PACKAGE_FILE_LIST
 
 # Read each line (strip out comment tags)
-for LINE in `cat $PACKAGE_FILE_LIST | sed 's/#.*$//g'`
+for PREPROC_LINE in $(cat $PACKAGE_FILE_LIST | sed 's/#.*$//g')
 do
-    PACKAGE=`echo $LINE | awk -F / '{print $1}'`
+    LINE=$(echo $PREPROC_LINE | tr -d '\r\n')
+    PACKAGE=$(echo $LINE | awk -F / '{$1=$1;print $1}')
     if [ "$PACKAGE" != "" ]  # Skip blank lines
     then
-        PACKAGE_VER=`echo $LINE | awk -F / '{print $2}'`
+        PACKAGE_VER=$(echo $LINE | awk -F / '{$2=$2;print $2}')
         if [ "$PACKAGE_VER" == "" ]
         then
             # Process non-versioned packages
-            INSTALLED_COUNT=`apt list --installed 2>/dev/null | grep ^$PACKAGE/ | wc -l`
+            INSTALLED_COUNT=$(apt list --installed 2>/dev/null | grep ^$PACKAGE/ | wc -l)
             if [ $INSTALLED_COUNT -eq 0 ]
             then
                 echo Installing $PACKAGE
                 apt-get install $PACKAGE -y
             else
-                INSTALLED_VERSION=`apt list --installed 2>/dev/null | grep ^$PACKAGE/ | awk '{print $2}'`
+                INSTALLED_VERSION=$(apt list --installed 2>/dev/null | grep ^$PACKAGE/ | awk '{print $2}')
                 echo $PACKAGE already installed \(version $INSTALLED_VERSION\)
             fi
         else
             # Process versioned packages
-            INSTALLED_COUNT=`apt list --installed 2>/dev/null | grep ^$PACKAGE/ | wc -l`
+            INSTALLED_COUNT=$(apt list --installed 2>/dev/null | grep ^$PACKAGE/ | wc -l)
             if [ $INSTALLED_COUNT -eq 0 ]
             then
                 echo Installing $PACKAGE \( $PACKAGE_VER \)
                 apt-get install $PACKAGE=$PACKAGE_VER -y
             else
-                INSTALLED_VERSION=`apt list --installed 2>/dev/null | grep ^$PACKAGE/ | awk '{print $2}'`
+                INSTALLED_VERSION=$(apt list --installed 2>/dev/null | grep ^$PACKAGE/ | awk '{print $2}')
                 if [ "$INSTALLED_VERSION" != "$PACKAGE_VER" ]
                 then
                     echo $PACKAGE already installed but with the wrong version. Purging the package
diff --git a/scripts/build/build_node/Platform/Linux/install-ubuntu-git.sh b/scripts/build/build_node/Platform/Linux/install-ubuntu-git.sh
index 53554f4175..028b0082d7 100755
--- a/scripts/build/build_node/Platform/Linux/install-ubuntu-git.sh
+++ b/scripts/build/build_node/Platform/Linux/install-ubuntu-git.sh
@@ -26,7 +26,7 @@ then
     exit 1
 fi
 
-UBUNTU_DISTRO="`lsb_release -c | awk '{print $2}'`"
+UBUNTU_DISTRO="$(lsb_release -c | awk '{print $2}')"
 if [ "$UBUNTU_DISTRO" == "bionic" ]
 then
     echo "Setup for Ubuntu 18.04 LTS ($UBUNTU_DISTRO)"
@@ -49,14 +49,14 @@ then
     apt-get update
     apt-get install git -y
 else
-    GIT_VERSION=`git --version | awk '{print $3}'`
+    GIT_VERSION=$(git --version | awk '{print $3}')
     echo Git $GIT_VERSION already Installed. Skipping Git installation
 fi
 
 #
 # Setup Git-LFS if needed
 #
-GIT_LFS_PACKAGE_COUNT=`apt list --installed 2>/dev/null | grep git-lfs/ | wc -l`
+GIT_LFS_PACKAGE_COUNT=$(apt list --installed 2>/dev/null | grep git-lfs/ | wc -l)
 if [ $GIT_LFS_PACKAGE_COUNT -eq 0 ]
 then
     echo Setting up Git-LFS
@@ -87,7 +87,7 @@ then
     dpkg -i $GCM_PACKAGE_NAME
     popd
 else
-    GCM_VERSION=`git-credential-manager-core --version`
+    GCM_VERSION=$(git-credential-manager-core --version)
     echo Git Credential Manager \(GCM\) version $GCM_VERSION already installed. Skipping GCM installation
 fi
 
diff --git a/scripts/build/build_node/Platform/Linux/install-ubuntu.sh b/scripts/build/build_node/Platform/Linux/install-ubuntu.sh
new file mode 100755
index 0000000000..9cdc94fa9e
--- /dev/null
+++ b/scripts/build/build_node/Platform/Linux/install-ubuntu.sh
@@ -0,0 +1,48 @@
+#!/bin/bash
+
+# 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.
+
+# This script must be run as root
+if [[ $EUID -ne 0 ]]
+then
+    echo "This script must be run as root (sudo)"
+    exit 1
+fi
+
+echo Installing packages and tools for O3DE development
+
+# Install awscli
+./install-ubuntu-awscli.sh
+if [ $? -ne 0 ]
+then
+    echo Error installing AWSCLI
+    exit 1
+fi
+
+
+# Install git
+./install-ubuntu-git.sh
+if [ $? -ne 0 ]
+then
+    echo Error installing Git
+    exit 1
+fi
+
+# Install the necessary build tools
+./install-ubuntu-build-tools.sh
+if [ $? -ne 0 ]
+then
+    echo Error installing ubuntu tools
+    exit 1
+fi
+
+
+echo Packages and tools for O3DE setup complete
+exit 0