diff --git a/Code/Tools/ProjectManager/Resources/Backgrounds/DefaultBackground.jpg b/Code/Tools/ProjectManager/Resources/Backgrounds/DefaultBackground.jpg
new file mode 100644
index 0000000000..3af15393c4
--- /dev/null
+++ b/Code/Tools/ProjectManager/Resources/Backgrounds/DefaultBackground.jpg
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:342c3eaccf68a178dfd8c2b1792a93a8c9197c8184dca11bf90706d7481df087
+size 1611268
diff --git a/Code/Tools/ProjectManager/Resources/Backgrounds/FirstTimeBackgroundImage.jpg b/Code/Tools/ProjectManager/Resources/Backgrounds/FirstTimeBackgroundImage.jpg
deleted file mode 100644
index bfa5f83cf6..0000000000
--- a/Code/Tools/ProjectManager/Resources/Backgrounds/FirstTimeBackgroundImage.jpg
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:7088e902885d98953f6a1715efab319c063a4ab8918fd0e810251c8ed82b8514
-size 542983
diff --git a/Code/Tools/ProjectManager/Resources/Backgrounds/FtueBackground.jpg b/Code/Tools/ProjectManager/Resources/Backgrounds/FtueBackground.jpg
new file mode 100644
index 0000000000..44291a8b1d
--- /dev/null
+++ b/Code/Tools/ProjectManager/Resources/Backgrounds/FtueBackground.jpg
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:797794816e4b1702f1ae1f32b408c95c79eb1f8a95aba43cfad9cccc181b0bda
+size 1135182
diff --git a/Code/Tools/ProjectManager/Resources/ProjectManager.qrc b/Code/Tools/ProjectManager/Resources/ProjectManager.qrc
index 0b9de2af89..cfe4b37fbc 100644
--- a/Code/Tools/ProjectManager/Resources/ProjectManager.qrc
+++ b/Code/Tools/ProjectManager/Resources/ProjectManager.qrc
@@ -26,12 +26,13 @@
         <file>o3de.svg</file>
         <file>menu.svg</file>
         <file>menu_hover.svg</file>
-        <file>Backgrounds/FirstTimeBackgroundImage.jpg</file>
         <file>ArrowDownLine.svg</file>
         <file>ArrowUpLine.svg</file>
         <file>CarrotArrowDown.svg</file>
         <file>Summary.svg</file>
         <file>WindowClose.svg</file>
         <file>Warning.svg</file>
+        <file>Backgrounds/DefaultBackground.jpg</file>
+        <file>Backgrounds/FtueBackground.jpg</file>
     </qresource>
 </RCC>
diff --git a/Code/Tools/ProjectManager/Source/ProjectsScreen.cpp b/Code/Tools/ProjectManager/Source/ProjectsScreen.cpp
index cc3e386118..b3ecd96e43 100644
--- a/Code/Tools/ProjectManager/Source/ProjectsScreen.cpp
+++ b/Code/Tools/ProjectManager/Source/ProjectsScreen.cpp
@@ -53,8 +53,6 @@ namespace O3DE::ProjectManager
         vLayout->setContentsMargins(s_contentMargins, 0, s_contentMargins, 0);
         setLayout(vLayout);
 
-        m_background.load(":/Backgrounds/FirstTimeBackgroundImage.jpg");
-
         m_stack = new QStackedWidget(this);
 
         m_firstTimeContent = CreateFirstTimeContent();
@@ -232,6 +230,8 @@ namespace O3DE::ProjectManager
             m_projectsContent->deleteLater();
         }
 
+        m_background.load(":/Backgrounds/DefaultBackground.jpg");
+
         // Make sure to update builder with latest Project Button
         if (m_currentBuilder)
         {
@@ -269,21 +269,30 @@ namespace O3DE::ProjectManager
         // we paint the background here because qss does not support background cover scaling
         QPainter painter(this);
 
-        auto winSize = size();
-        auto pixmapRatio = (float)m_background.width() / m_background.height();
-        auto windowRatio = (float)winSize.width() / winSize.height();
+        const QSize winSize = size();
+        const float pixmapRatio = (float)m_background.width() / m_background.height();
+        const float windowRatio = (float)winSize.width() / winSize.height();
 
+        QRect backgroundRect;
         if (pixmapRatio > windowRatio)
         {
-            auto newWidth = (int)(winSize.height() * pixmapRatio);
-            auto offset = (newWidth - winSize.width()) / -2;
-            painter.drawPixmap(offset, 0, newWidth, winSize.height(), m_background);
+            const int newWidth = (int)(winSize.height() * pixmapRatio);
+            const int offset = (newWidth - winSize.width()) / -2;
+            backgroundRect = QRect(offset, 0, newWidth, winSize.height());
         }
         else
         {
-            auto newHeight = (int)(winSize.width() / pixmapRatio);
-            painter.drawPixmap(0, 0, winSize.width(), newHeight, m_background);
+            const int newHeight = (int)(winSize.width() / pixmapRatio);
+            backgroundRect = QRect(0, 0, winSize.width(), newHeight);
         }
+
+        // Draw the background image.
+        painter.drawPixmap(backgroundRect, m_background);
+
+        // Draw a semi-transparent overlay to darken down the colors.
+        painter.setCompositionMode (QPainter::CompositionMode_DestinationIn);
+        const float overlayTransparency = 0.7f;
+        painter.fillRect(backgroundRect, QColor(0, 0, 0, static_cast<int>(255.0f * overlayTransparency)));
     }
 
     void ProjectsScreen::HandleNewProjectButton()
@@ -459,6 +468,7 @@ namespace O3DE::ProjectManager
     {
         if (ShouldDisplayFirstTimeContent())
         {
+            m_background.load(":/Backgrounds/FtueBackground.jpg");
             m_stack->setCurrentWidget(m_firstTimeContent);
         }
         else