diff --git a/Gems/Multiplayer/Code/CMakeLists.txt b/Gems/Multiplayer/Code/CMakeLists.txt
index 49b404fb1c..909590a25d 100644
--- a/Gems/Multiplayer/Code/CMakeLists.txt
+++ b/Gems/Multiplayer/Code/CMakeLists.txt
@@ -179,6 +179,10 @@ if (PAL_TRAIT_BUILD_TESTS_SUPPORTED)
     ly_add_googletest(
         NAME Gem::Multiplayer.Tests
     )
+    ly_add_googlebenchmark(
+        NAME Gem::Multiplayer.Benchmarks
+        TARGET Gem::Multiplayer.Tests
+    )
     
     if (PAL_TRAIT_BUILD_HOST_TOOLS)
         ly_add_target(
diff --git a/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetBindComponent.h b/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetBindComponent.h
index f604102e37..265137a078 100644
--- a/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetBindComponent.h
+++ b/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetBindComponent.h
@@ -193,6 +193,7 @@ namespace Multiplayer
         friend class EntityReplicationManager;
 
         friend class HierarchyTests;
+        friend class HierarchyBenchmarkBase;
     };
 
     bool NetworkRoleHasController(NetEntityRole networkRole);
diff --git a/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetworkHierarchyRootComponent.h b/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetworkHierarchyRootComponent.h
index 4c9f94c004..674dc6114d 100644
--- a/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetworkHierarchyRootComponent.h
+++ b/Gems/Multiplayer/Code/Include/Multiplayer/Components/NetworkHierarchyRootComponent.h
@@ -96,5 +96,7 @@ namespace Multiplayer
         
         //! Set to false when deactivating or otherwise not to be included in hierarchy considerations.
         bool m_isHierarchyEnabled = true;
+
+        friend class HierarchyBenchmarkBase;
     };
 }
diff --git a/Gems/Multiplayer/Code/Tests/CommonBenchmarkSetup.h b/Gems/Multiplayer/Code/Tests/CommonBenchmarkSetup.h
new file mode 100644
index 0000000000..e0018e2f26
--- /dev/null
+++ b/Gems/Multiplayer/Code/Tests/CommonBenchmarkSetup.h
@@ -0,0 +1,640 @@
+/*
+ * Copyright (c) Contributors to the Open 3D Engine Project.
+ * For complete copyright and license terms please see the LICENSE at the root of this distribution.
+ *
+ * SPDX-License-Identifier: Apache-2.0 OR MIT
+ *
+ */
+
+#pragma once
+
+#ifdef HAVE_BENCHMARK
+#include <CommonHierarchySetup.h>
+#include <AzCore/Component/Entity.h>
+#include <AzCore/Console/Console.h>
+#include <AzCore/Name/Name.h>
+#include <AzCore/Serialization/SerializeContext.h>
+#include <AzFramework/Components/TransformComponent.h>
+#include <benchmark/benchmark.h>
+#include <Multiplayer/Components/NetBindComponent.h>
+#include <Multiplayer/Components/NetworkHierarchyChildComponent.h>
+#include <Multiplayer/Components/NetworkHierarchyRootComponent.h>
+#include <NetworkEntity/EntityReplication/EntityReplicator.h>
+
+namespace Multiplayer
+{
+    class BenchmarkComponentApplicationRequests : public AZ::ComponentApplicationRequests
+    {
+    public:
+        void RegisterComponentDescriptor([[maybe_unused]] const AZ::ComponentDescriptor* descriptor) override {}
+        void UnregisterComponentDescriptor([[maybe_unused]] const AZ::ComponentDescriptor* descriptor) override {}
+        AZ::ComponentApplication* GetApplication() override { return {}; }
+        void RegisterEntityAddedEventHandler([[maybe_unused]] AZ::Event<AZ::Entity*>::Handler& handler) override {}
+        void RegisterEntityRemovedEventHandler([[maybe_unused]] AZ::Event<AZ::Entity*>::Handler& handler) override {}
+        void RegisterEntityActivatedEventHandler([[maybe_unused]] AZ::Event<AZ::Entity*>::Handler& handler) override {}
+        void RegisterEntityDeactivatedEventHandler([[maybe_unused]] AZ::Event<AZ::Entity*>::Handler& handler) override {}
+        void SignalEntityActivated([[maybe_unused]] AZ::Entity* entity) override {}
+        void SignalEntityDeactivated([[maybe_unused]] AZ::Entity* entity) override {}
+        bool RemoveEntity([[maybe_unused]] AZ::Entity* entity) override { return {}; }
+        bool DeleteEntity([[maybe_unused]] const AZ::EntityId& id) override { return {}; }
+        void EnumerateEntities([[maybe_unused]] const EntityCallback& callback) override {}
+        AZ::SerializeContext* GetSerializeContext() override { return {}; }
+        AZ::BehaviorContext* GetBehaviorContext() override { return {}; }
+        AZ::JsonRegistrationContext* GetJsonRegistrationContext() override { return {}; }
+        const char* GetAppRoot() const override { return {}; }
+        const char* GetEngineRoot() const override { return {}; }
+        const char* GetExecutableFolder() const override { return {}; }
+        void QueryApplicationType([[maybe_unused]] AZ::ApplicationTypeQuery& appType) const override {}
+
+        AZStd::map<AZ::EntityId, AZ::Entity*> m_entities;
+
+        bool AddEntity(AZ::Entity* entity) override
+        {
+            m_entities[entity->GetId()] = entity;
+            return true;
+        }
+
+        AZ::Entity* FindEntity(const AZ::EntityId& id) override
+        {
+            const auto iterator = m_entities.find(id);
+            if (iterator != m_entities.end())
+            {
+                return iterator->second;
+            }
+
+            return nullptr;
+        }
+    };
+
+
+    class BenchmarkConnectionListener : public AzNetworking::IConnectionListener
+    {
+    public:
+        ConnectResult ValidateConnect([[maybe_unused]] const IpAddress& remoteAddress, [[maybe_unused]] const IPacketHeader& packetHeader, [[maybe_unused]] ISerializer& serializer) override
+        {
+            return {};
+        }
+
+        void OnConnect([[maybe_unused]] IConnection* connection) override
+        {
+        }
+
+        PacketDispatchResult OnPacketReceived([[maybe_unused]] IConnection* connection, [[maybe_unused]] const IPacketHeader& packetHeader, [[maybe_unused]] ISerializer& serializer) override
+        {
+            return {};
+        }
+
+        void OnPacketLost([[maybe_unused]] IConnection* connection, [[maybe_unused]] PacketId packetId) override
+        {
+        }
+
+        void OnDisconnect([[maybe_unused]] IConnection* connection, [[maybe_unused]] DisconnectReason reason, [[maybe_unused]] TerminationEndpoint endpoint) override
+        {
+        }
+    };
+
+    class BenchmarkTime : public AZ::ITime
+    {
+    public:
+        AZ::TimeMs GetElapsedTimeMs() const override
+        {
+            return {};
+        }
+    };
+
+    class BenchmarkNetworkTime : public Multiplayer::INetworkTime
+    {
+    public:
+        bool IsTimeRewound() const override
+        {
+            return false;
+        }
+
+        HostFrameId GetHostFrameId() const override
+        {
+            return {};
+        }
+
+        HostFrameId GetUnalteredHostFrameId() const override
+        {
+            return {};
+        }
+
+        void IncrementHostFrameId() override
+        {
+        }
+
+        AZ::TimeMs GetHostTimeMs() const override
+        {
+            return {};
+        }
+
+        float GetHostBlendFactor() const override
+        {
+            return 0;
+        }
+
+        AzNetworking::ConnectionId GetRewindingConnectionId() const override
+        {
+            return {};
+        }
+
+        void ForceSetTime([[maybe_unused]] HostFrameId frameId, [[maybe_unused]] AZ::TimeMs timeMs) override
+        {
+        }
+
+        void SyncEntitiesToRewindState([[maybe_unused]] const AZ::Aabb& rewindVolume) override
+        {
+        }
+
+        void ClearRewoundEntities() override
+        {
+        }
+
+        void AlterTime([[maybe_unused]] HostFrameId frameId, [[maybe_unused]] AZ::TimeMs timeMs, [[maybe_unused]] float blendFactor, [[maybe_unused]] AzNetworking::ConnectionId rewindConnectionId) override
+        {
+        }
+    };
+
+    class BenchmarkMultiplayerConnection : public IConnection
+    {
+    public:
+        BenchmarkMultiplayerConnection(ConnectionId connectionId, const IpAddress& address, [[maybe_unused]] ConnectionRole connectionRole)
+            : IConnection(connectionId, address)
+        {
+            ;
+        }
+
+        ~BenchmarkMultiplayerConnection() override = default;
+
+        bool SendReliablePacket([[maybe_unused]] const IPacket& packet) override
+        {
+            return false;
+        }
+
+        PacketId SendUnreliablePacket([[maybe_unused]] const IPacket& packet) override
+        {
+            return {};
+        }
+
+        bool WasPacketAcked([[maybe_unused]] PacketId packetId) const override
+        {
+            return false;
+        }
+
+        ConnectionState GetConnectionState() const override
+        {
+            return {};
+        }
+
+        ConnectionRole GetConnectionRole() const override
+        {
+            return {};
+        }
+
+        bool Disconnect([[maybe_unused]] DisconnectReason reason, [[maybe_unused]] TerminationEndpoint endpoint) override
+        {
+            return false;
+        }
+
+        void SetConnectionMtu([[maybe_unused]] uint32_t connectionMtu) override
+        {
+        }
+
+        uint32_t GetConnectionMtu() const override
+        {
+            return 0;
+        }
+    };
+
+    class BenchmarkNetworkEntityManager : public Multiplayer::INetworkEntityManager
+    {
+    public:
+        BenchmarkNetworkEntityManager() : m_authorityTracker(*this) {}
+
+        NetworkEntityTracker* GetNetworkEntityTracker() override { return &m_tracker; }
+        NetworkEntityAuthorityTracker* GetNetworkEntityAuthorityTracker() override { return &m_authorityTracker; }
+        MultiplayerComponentRegistry* GetMultiplayerComponentRegistry() override { return &m_multiplayerComponentRegistry; }
+        HostId GetHostId() const override { return {}; }
+        EntityList CreateEntitiesImmediate(
+            [[maybe_unused]] const PrefabEntityId& prefabEntryId,
+            [[maybe_unused]] NetEntityRole netEntityRole,
+            [[maybe_unused]] const AZ::Transform& transform,
+            [[maybe_unused]] AutoActivate autoActivate) override {
+            return {};
+        }
+        EntityList CreateEntitiesImmediate(
+            [[maybe_unused]] const PrefabEntityId& prefabEntryId,
+            [[maybe_unused]] NetEntityId netEntityId,
+            [[maybe_unused]] NetEntityRole netEntityRole,
+            [[maybe_unused]] AutoActivate autoActivate,
+            [[maybe_unused]] const AZ::Transform& transform) override {
+            return {};
+        }
+        void SetupNetEntity(
+            [[maybe_unused]] AZ::Entity* netEntity,
+            [[maybe_unused]] PrefabEntityId prefabEntityId,
+            [[maybe_unused]] NetEntityRole netEntityRole) override {}
+        uint32_t GetEntityCount() const override { return {}; }
+        void MarkForRemoval(
+            [[maybe_unused]] const ConstNetworkEntityHandle& entityHandle) override {}
+        bool IsMarkedForRemoval(
+            [[maybe_unused]] const ConstNetworkEntityHandle& entityHandle) const override {
+            return {};
+        }
+        void ClearEntityFromRemovalList(
+            [[maybe_unused]] const ConstNetworkEntityHandle& entityHandle) override {}
+        void ClearAllEntities() override {}
+        void AddEntityMarkedDirtyHandler(
+            [[maybe_unused]] AZ::Event<>::Handler& entityMarkedDirtyHandle) override {}
+        void AddEntityNotifyChangesHandler(
+            [[maybe_unused]] AZ::Event<>::Handler& entityNotifyChangesHandle) override {}
+        void AddEntityExitDomainHandler(
+            [[maybe_unused]] EntityExitDomainEvent::Handler& entityExitDomainHandler) override {}
+        void AddControllersActivatedHandler(
+            [[maybe_unused]] ControllersActivatedEvent::Handler& controllersActivatedHandler) override {}
+        void AddControllersDeactivatedHandler(
+            [[maybe_unused]] ControllersDeactivatedEvent::Handler& controllersDeactivatedHandler) override {}
+        void NotifyEntitiesDirtied() override {}
+        void NotifyEntitiesChanged() override {}
+        void NotifyControllersActivated(
+            [[maybe_unused]] const ConstNetworkEntityHandle& entityHandle,
+            [[maybe_unused]] EntityIsMigrating entityIsMigrating) override {}
+        void NotifyControllersDeactivated(
+            [[maybe_unused]] const ConstNetworkEntityHandle& entityHandle,
+            [[maybe_unused]] EntityIsMigrating entityIsMigrating) override {}
+        void HandleLocalRpcMessage(
+            [[maybe_unused]] NetworkEntityRpcMessage& message) override {}
+
+        mutable AZStd::map<NetEntityId, AZ::Entity*> m_networkEntityMap;
+
+        NetworkEntityHandle AddEntityToEntityMap(NetEntityId netEntityId, AZ::Entity* entity) override
+        {
+            m_networkEntityMap[netEntityId] = entity;
+            return NetworkEntityHandle(entity, netEntityId, &m_tracker);
+        }
+
+        ConstNetworkEntityHandle GetEntity(NetEntityId netEntityId) const override
+        {
+            AZ::Entity* entity = m_networkEntityMap[netEntityId];
+            return ConstNetworkEntityHandle(entity, &m_tracker);
+        }
+
+        NetEntityId GetNetEntityIdById(const AZ::EntityId& entityId) const override
+        {
+            for (const auto& pair : m_networkEntityMap)
+            {
+                if (pair.second->GetId() == entityId)
+                {
+                    return pair.first;
+                }
+            }
+
+            return InvalidNetEntityId;
+        }
+
+        [[nodiscard]] AZStd::unique_ptr<AzFramework::EntitySpawnTicket> RequestNetSpawnableInstantiation(
+            [[maybe_unused]] const AZ::Data::Asset<AzFramework::Spawnable>& netSpawnable,
+            [[maybe_unused]] const AZ::Transform& transform) override
+        {
+            return {};
+        }
+
+        NetworkEntityTracker m_tracker;
+        NetworkEntityAuthorityTracker m_authorityTracker;
+        MultiplayerComponentRegistry m_multiplayerComponentRegistry;
+    };
+
+    class BenchmarkMultiplayer : public Multiplayer::IMultiplayer
+    {
+    public:
+        BenchmarkMultiplayer(BenchmarkNetworkEntityManager& manager) : m_manager(manager) {}
+
+        MultiplayerAgentType GetAgentType() const override { return {}; }
+        void InitializeMultiplayer([[maybe_unused]] MultiplayerAgentType state) override {}
+        bool StartHosting([[maybe_unused]] uint16_t port, [[maybe_unused]] bool isDedicated) override { return {}; }
+        bool Connect([[maybe_unused]] AZStd::string remoteAddress, [[maybe_unused]] uint16_t port) override { return {}; }
+        void Terminate([[maybe_unused]] AzNetworking::DisconnectReason reason) override {}
+        void AddClientDisconnectedHandler([[maybe_unused]] ClientDisconnectedEvent::Handler& handler) override {}
+        void AddConnectionAcquiredHandler([[maybe_unused]] ConnectionAcquiredEvent::Handler& handler) override {}
+        void AddSessionInitHandler([[maybe_unused]] SessionInitEvent::Handler& handler) override {}
+        void AddSessionShutdownHandler([[maybe_unused]] SessionShutdownEvent::Handler& handler) override {}
+        void SendReadyForEntityUpdates([[maybe_unused]] bool readyForEntityUpdates) override {}
+        AZ::TimeMs GetCurrentHostTimeMs() const override { return {}; }
+        float GetCurrentBlendFactor() const override { return {}; }
+        INetworkTime* GetNetworkTime() override { return {}; }
+        INetworkEntityManager* GetNetworkEntityManager() override { return &m_manager; }
+        void SetFilterEntityManager([[maybe_unused]] IFilterEntityManager* entityFilter) override {}
+        IFilterEntityManager* GetFilterEntityManager() override { return {}; }
+
+        BenchmarkNetworkEntityManager& m_manager;
+    };
+
+    class HierarchyBenchmarkBase
+        : public benchmark::Fixture
+        , public AllocatorsBase
+    {
+    public:
+        void SetUp(const benchmark::State&) override
+        {
+            internalSetUp();
+        }
+        void SetUp(benchmark::State&) override
+        {
+            internalSetUp();
+        }
+
+        void TearDown(const benchmark::State&) override
+        {
+            internalTearDown();
+        }
+        void TearDown(benchmark::State&) override
+        {
+            internalTearDown();
+        }
+
+        virtual void internalSetUp()
+        {
+            SetupAllocator();
+            AZ::NameDictionary::Create();
+
+            m_ComponentApplicationRequests = AZStd::make_unique<BenchmarkComponentApplicationRequests>();
+            AZ::Interface<AZ::ComponentApplicationRequests>::Register(m_ComponentApplicationRequests.get());
+
+            // register components involved in testing
+            m_serializeContext = AZStd::make_unique<AZ::SerializeContext>();
+
+            m_transformDescriptor.reset(AzFramework::TransformComponent::CreateDescriptor());
+            m_transformDescriptor->Reflect(m_serializeContext.get());
+
+            m_netBindDescriptor.reset(NetBindComponent::CreateDescriptor());
+            m_netBindDescriptor->Reflect(m_serializeContext.get());
+
+            m_hierarchyRootDescriptor.reset(NetworkHierarchyRootComponent::CreateDescriptor());
+            m_hierarchyRootDescriptor->Reflect(m_serializeContext.get());
+
+            m_hierarchyChildDescriptor.reset(NetworkHierarchyChildComponent::CreateDescriptor());
+            m_hierarchyChildDescriptor->Reflect(m_serializeContext.get());
+
+            m_netTransformDescriptor.reset(NetworkTransformComponent::CreateDescriptor());
+            m_netTransformDescriptor->Reflect(m_serializeContext.get());
+
+            m_NetworkEntityManager = AZStd::make_unique<BenchmarkNetworkEntityManager>();
+
+            m_Multiplayer = AZStd::make_unique<BenchmarkMultiplayer>(*m_NetworkEntityManager);
+            AZ::Interface<IMultiplayer>::Register(m_Multiplayer.get());
+
+            // Create space for replication stats
+            // Without Multiplayer::RegisterMultiplayerComponents() the stats go to invalid id, which is fine for unit tests
+            GetMultiplayer()->GetStats().ReserveComponentStats(Multiplayer::InvalidNetComponentId, 50, 0);
+
+            m_Time = AZStd::make_unique<BenchmarkTime>();
+            AZ::Interface<AZ::ITime>::Register(m_Time.get());
+
+            m_NetworkTime = AZStd::make_unique<BenchmarkNetworkTime>();
+            AZ::Interface<INetworkTime>::Register(m_NetworkTime.get());
+
+            EXPECT_NE(AZ::Interface<IMultiplayer>::Get()->GetNetworkEntityManager(), nullptr);
+
+            const IpAddress address("localhost", 1, ProtocolType::Udp);
+            m_Connection = AZStd::make_unique<BenchmarkMultiplayerConnection>(ConnectionId{ 1 }, address, ConnectionRole::Connector);
+            m_ConnectionListener = AZStd::make_unique<BenchmarkConnectionListener>();
+
+            m_entityReplicationManager = AZStd::make_unique<EntityReplicationManager>(*m_Connection, *m_ConnectionListener, EntityReplicationManager::Mode::LocalClientToRemoteServer);
+
+            m_console.reset(aznew AZ::Console());
+            AZ::Interface<AZ::IConsole>::Register(m_console.get());
+            m_console->LinkDeferredFunctors(AZ::ConsoleFunctorBase::GetDeferredHead());
+
+            RegisterMultiplayerComponents();
+        }
+
+        virtual void internalTearDown()
+        {
+            AZ::Interface<AZ::IConsole>::Unregister(m_console.get());
+            m_console.reset();
+
+            m_entityReplicationManager.reset();
+
+            m_Connection.reset();
+            m_ConnectionListener.reset();
+
+            AZ::Interface<INetworkTime>::Unregister(m_NetworkTime.get());
+            AZ::Interface<AZ::ITime>::Unregister(m_Time.get());
+            AZ::Interface<IMultiplayer>::Unregister(m_Multiplayer.get());
+            AZ::Interface<AZ::ComponentApplicationRequests>::Unregister(m_ComponentApplicationRequests.get());
+
+            m_Time.reset();
+
+            m_NetworkEntityManager.reset();
+            m_Multiplayer.reset();
+
+            m_transformDescriptor.reset();
+            m_netTransformDescriptor.reset();
+            m_hierarchyRootDescriptor.reset();
+            m_hierarchyChildDescriptor.reset();
+            m_netBindDescriptor.reset();
+            m_serializeContext.reset();
+            m_ComponentApplicationRequests.reset();
+
+            AZ::NameDictionary::Destroy();
+            TeardownAllocator();
+        }
+
+        AZStd::unique_ptr<AZ::IConsole> m_console;
+
+        AZStd::unique_ptr<BenchmarkComponentApplicationRequests> m_ComponentApplicationRequests;
+        AZStd::unique_ptr<AZ::SerializeContext> m_serializeContext;
+        AZStd::unique_ptr<AZ::ComponentDescriptor> m_transformDescriptor;
+        AZStd::unique_ptr<AZ::ComponentDescriptor> m_netBindDescriptor;
+        AZStd::unique_ptr<AZ::ComponentDescriptor> m_hierarchyRootDescriptor;
+        AZStd::unique_ptr<AZ::ComponentDescriptor> m_hierarchyChildDescriptor;
+        AZStd::unique_ptr<AZ::ComponentDescriptor> m_netTransformDescriptor;
+
+        AZStd::unique_ptr<BenchmarkMultiplayer> m_Multiplayer;
+        AZStd::unique_ptr<BenchmarkNetworkEntityManager> m_NetworkEntityManager;
+        AZStd::unique_ptr<BenchmarkTime> m_Time;
+        AZStd::unique_ptr<BenchmarkNetworkTime> m_NetworkTime;
+
+        AZStd::unique_ptr<BenchmarkMultiplayerConnection> m_Connection;
+        AZStd::unique_ptr<BenchmarkConnectionListener> m_ConnectionListener;
+
+        AZStd::unique_ptr<EntityReplicationManager> m_entityReplicationManager;
+
+        void SetupEntity(const AZStd::unique_ptr<AZ::Entity>& entity, NetEntityId netId, NetEntityRole role)
+        {
+            const auto netBindComponent = entity->FindComponent<Multiplayer::NetBindComponent>();
+            EXPECT_NE(netBindComponent, nullptr);
+            netBindComponent->PreInit(entity.get(), PrefabEntityId{ AZ::Name("test"), 1 }, netId, role);
+            entity->Init();
+        }
+
+        static void StopEntity(const AZStd::unique_ptr<AZ::Entity>& entity)
+        {
+            const auto netBindComponent = entity->FindComponent<Multiplayer::NetBindComponent>();
+            EXPECT_NE(netBindComponent, nullptr);
+            netBindComponent->StopEntity();
+        }
+
+        static void StopAndDeactivateEntity(AZStd::unique_ptr<AZ::Entity>& entity)
+        {
+            if (entity)
+            {
+                StopEntity(entity);
+                entity->Deactivate();
+                entity.reset();
+            }
+        }
+
+        void CreateEntityWithRootHierarchy(AZStd::unique_ptr<AZ::Entity>& rootEntity)
+        {
+            rootEntity->CreateComponent<AzFramework::TransformComponent>();
+            rootEntity->CreateComponent<NetBindComponent>();
+            rootEntity->CreateComponent<NetworkTransformComponent>();
+            rootEntity->CreateComponent<NetworkHierarchyRootComponent>();
+        }
+
+        void CreateEntityWithChildHierarchy(AZStd::unique_ptr<AZ::Entity>& childEntity)
+        {
+            childEntity->CreateComponent<AzFramework::TransformComponent>();
+            childEntity->CreateComponent<NetBindComponent>();
+            childEntity->CreateComponent<NetworkTransformComponent>();
+            childEntity->CreateComponent<NetworkHierarchyChildComponent>();
+        }
+
+        void SetParentIdOnNetworkTransform(const AZStd::unique_ptr<AZ::Entity>& entity, NetEntityId netParentId)
+        {
+            /* Derived from NetworkTransformComponent.AutoComponent.xml */
+            constexpr int totalBits = 6 /*NetworkTransformComponentInternal::AuthorityToClientDirtyEnum::Count*/;
+            constexpr int parentIdBit = 4 /*NetworkTransformComponentInternal::AuthorityToClientDirtyEnum::parentEntityId_DirtyFlag*/;
+
+            ReplicationRecord currentRecord;
+            currentRecord.m_authorityToClient.AddBits(totalBits);
+            currentRecord.m_authorityToClient.SetBit(parentIdBit, true);
+
+            constexpr uint32_t bufferSize = 100;
+            AZStd::array<uint8_t, bufferSize> buffer = {};
+            NetworkInputSerializer inSerializer(buffer.begin(), bufferSize);
+            inSerializer.Serialize(reinterpret_cast<uint32_t&>(netParentId),
+                "parentEntityId", /* Derived from NetworkTransformComponent.AutoComponent.xml */
+                AZStd::numeric_limits<uint32_t>::min(), AZStd::numeric_limits<uint32_t>::max());
+
+            NetworkOutputSerializer outSerializer(buffer.begin(), bufferSize);
+
+            ReplicationRecord notifyRecord = currentRecord;
+            entity->FindComponent<NetworkTransformComponent>()->SerializeStateDeltaMessage(currentRecord, outSerializer);
+            entity->FindComponent<NetworkTransformComponent>()->NotifyStateDeltaChanges(notifyRecord);
+        }
+
+        template <typename Component>
+        void SetHierarchyRootFieldOnNetworkHierarchyChild(const AZStd::unique_ptr<AZ::Entity>& entity, NetEntityId value)
+        {
+            /* Derived from NetworkHierarchyChildComponent.AutoComponent.xml */
+            constexpr int totalBits = 1 /*NetworkHierarchyChildComponentInternal::AuthorityToClientDirtyEnum::Count*/;
+            constexpr int inHierarchyBit = 0 /*NetworkHierarchyChildComponentInternal::AuthorityToClientDirtyEnum::hierarchyRoot_DirtyFlag*/;
+
+            ReplicationRecord currentRecord;
+            currentRecord.m_authorityToClient.AddBits(totalBits);
+            currentRecord.m_authorityToClient.SetBit(inHierarchyBit, true);
+
+            constexpr uint32_t bufferSize = 100;
+            AZStd::array<uint8_t, bufferSize> buffer = {};
+            NetworkInputSerializer inSerializer(buffer.begin(), bufferSize);
+            inSerializer.Serialize(reinterpret_cast<uint32_t&>(value),
+                "hierarchyRoot", /* Derived from NetworkHierarchyChildComponent.AutoComponent.xml */
+                AZStd::numeric_limits<uint32_t>::min(), AZStd::numeric_limits<uint32_t>::max());
+
+            NetworkOutputSerializer outSerializer(buffer.begin(), bufferSize);
+
+            ReplicationRecord notifyRecord = currentRecord;
+            entity->FindComponent<Component>()->SerializeStateDeltaMessage(currentRecord, outSerializer);
+            entity->FindComponent<Component>()->NotifyStateDeltaChanges(notifyRecord);
+        }
+
+        struct EntityInfo
+        {
+            enum class Role
+            {
+                Root,
+                Child,
+                None
+            };
+
+            EntityInfo(AZ::u64 entityId, const char* entityName, NetEntityId netId, Role role)
+                : m_entity(AZStd::make_unique<AZ::Entity>(AZ::EntityId(entityId), entityName))
+                , m_netId(netId)
+                , m_role(role)
+            {
+            }
+
+            ~EntityInfo()
+            {
+                StopAndDeactivateEntity(m_entity);
+            }
+
+            AZStd::unique_ptr<AZ::Entity> m_entity;
+            NetEntityId m_netId;
+            AZStd::unique_ptr<EntityReplicator> m_replicator;
+            Role m_role = Role::None;
+        };
+
+        void PopulateHierarchicalEntity(const EntityInfo& entityInfo)
+        {
+            entityInfo.m_entity->CreateComponent<AzFramework::TransformComponent>();
+            entityInfo.m_entity->CreateComponent<NetBindComponent>();
+            entityInfo.m_entity->CreateComponent<NetworkTransformComponent>();
+            switch (entityInfo.m_role)
+            {
+            case EntityInfo::Role::Root:
+                entityInfo.m_entity->CreateComponent<NetworkHierarchyRootComponent>();
+                break;
+            case EntityInfo::Role::Child:
+                entityInfo.m_entity->CreateComponent<NetworkHierarchyChildComponent>();
+                break;
+            case EntityInfo::Role::None:
+                break;
+            }
+        }
+
+        void CreateParent(EntityInfo& parent)
+        {
+            PopulateHierarchicalEntity(parent);
+
+            SetupEntity(parent.m_entity, parent.m_netId, NetEntityRole::Authority);
+
+            // Create an entity replicator for the child entity
+            const NetworkEntityHandle childHandle(parent.m_entity.get(), m_NetworkEntityManager->GetNetworkEntityTracker());
+            parent.m_replicator = AZStd::make_unique<EntityReplicator>(*m_entityReplicationManager, m_Connection.get(), NetEntityRole::Client, childHandle);
+            parent.m_replicator->Initialize(childHandle);
+
+            parent.m_entity->Activate();
+        }
+
+        void CreateChildForParent(EntityInfo& child, EntityInfo& parent)
+        {
+            PopulateHierarchicalEntity(child);
+
+            SetupEntity(child.m_entity, child.m_netId, NetEntityRole::Authority);
+
+            // we need a parent-id value to be present in NetworkTransformComponent (which is in client mode and doesn't have a controller)
+            SetParentIdOnNetworkTransform(child.m_entity, parent.m_netId);
+
+            // Create an entity replicator for the child entity
+            const NetworkEntityHandle childHandle(child.m_entity.get(), m_NetworkEntityManager->GetNetworkEntityTracker());
+            child.m_replicator = AZStd::make_unique<EntityReplicator>(*m_entityReplicationManager, m_Connection.get(), NetEntityRole::Client, childHandle);
+            child.m_replicator->Initialize(childHandle);
+
+            child.m_entity->Activate();
+        }
+
+        void ForceRebuildHierarchy(const AZStd::unique_ptr<AZ::Entity>& rootEntity)
+        {
+            if (NetworkHierarchyRootComponent* root = rootEntity->FindComponent<NetworkHierarchyRootComponent>())
+            {
+                root->RebuildHierarchy();
+            }
+        }
+    };
+}
+
+#endif
diff --git a/Gems/Multiplayer/Code/Tests/ServerHierarchyBenchmarks.cpp b/Gems/Multiplayer/Code/Tests/ServerHierarchyBenchmarks.cpp
new file mode 100644
index 0000000000..f6f82ebe2b
--- /dev/null
+++ b/Gems/Multiplayer/Code/Tests/ServerHierarchyBenchmarks.cpp
@@ -0,0 +1,119 @@
+/*
+ * Copyright (c) Contributors to the Open 3D Engine Project.
+ * For complete copyright and license terms please see the LICENSE at the root of this distribution.
+ *
+ * SPDX-License-Identifier: Apache-2.0 OR MIT
+ *
+ */
+
+#ifdef HAVE_BENCHMARK
+#include <CommonBenchmarkSetup.h>
+#include <AzCore/std/smart_ptr/make_shared.h>
+
+namespace Multiplayer
+{
+    /*
+     * Hierarchy of 16 entities: Parent -> Child_2 -> .. -> Child_16
+     * By default the maximum size of a hierarchy is defined by bg_hierarchyEntityMaxLimit (16).
+     */
+    class ServerDeepHierarchyBenchmark : public HierarchyBenchmarkBase
+    {
+    public:
+        const NetEntityId RootNetEntityId = NetEntityId{ 1 };
+        const NetEntityId ChildNetEntityId = NetEntityId{ 2 };
+        const NetEntityId ChildOfChildNetEntityId = NetEntityId{ 3 };
+
+        void internalSetUp() override
+        {
+            HierarchyBenchmarkBase::internalSetUp();
+
+            m_root = AZStd::make_unique<EntityInfo>((1), "root", RootNetEntityId, EntityInfo::Role::Root);
+            CreateParent(*m_root);
+
+            m_children = AZStd::make_unique<AZStd::vector<AZStd::shared_ptr<EntityInfo>>>();
+
+            EntityInfo* parent = m_root.get();
+            for (int i = 0; i < 15; ++i)
+            {
+                m_children->push_back(AZStd::make_shared<EntityInfo>((i + 2), "child", ChildNetEntityId, EntityInfo::Role::Child));
+                CreateChildForParent(*m_children->back(), *parent);
+
+                m_children->back()->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(parent->m_entity->GetId());
+                parent = m_children->back().get();
+            }
+        }
+
+        void internalTearDown() override
+        {
+            m_children.reset();
+            m_root.reset();
+
+            HierarchyBenchmarkBase::internalTearDown();
+        }
+
+        AZStd::unique_ptr<EntityInfo> m_root;
+        AZStd::unique_ptr<AZStd::vector<AZStd::shared_ptr<EntityInfo>>> m_children;
+    };
+
+    BENCHMARK_DEFINE_F(ServerDeepHierarchyBenchmark, RebuildHierarchy)(benchmark::State& state)
+    {
+        for ([[maybe_unused]] auto value : state)
+        {
+            ForceRebuildHierarchy(m_root->m_entity);
+        }
+    }
+
+    BENCHMARK_REGISTER_F(ServerDeepHierarchyBenchmark, RebuildHierarchy)
+        ->Unit(benchmark::kMicrosecond)
+        ;
+
+    // Should be roughly twice the time of @RebuildHierarchy benchmark
+    BENCHMARK_DEFINE_F(ServerDeepHierarchyBenchmark, RebuildHierarchyRemoveAndAddLastChild)(benchmark::State& state)
+    {
+        const AZ::EntityId parentOfLastChild = m_children->at(m_children->size() - 2)->m_entity->GetId();
+
+        for ([[maybe_unused]] auto value : state)
+        {
+            m_children->back()->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(AZ::EntityId());
+            m_children->back()->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(parentOfLastChild);
+        }
+    }
+
+    BENCHMARK_REGISTER_F(ServerDeepHierarchyBenchmark, RebuildHierarchyRemoveAndAddLastChild)
+        ->Unit(benchmark::kMicrosecond)
+        ;
+
+    // Should be roughly twice the time of @RebuildHierarchy benchmark
+    BENCHMARK_DEFINE_F(ServerDeepHierarchyBenchmark, RebuildHierarchyRemoveAndAddMiddleChild)(benchmark::State& state)
+    {
+        const AZ::EntityId parentOfMiddleChild = m_children->at(4)->m_entity->GetId();
+
+        for ([[maybe_unused]] auto value : state)
+        {
+            m_children->at(5)->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(AZ::EntityId());
+            m_children->at(5)->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(parentOfMiddleChild);
+        }
+    }
+
+    BENCHMARK_REGISTER_F(ServerDeepHierarchyBenchmark, RebuildHierarchyRemoveAndAddMiddleChild)
+        ->Unit(benchmark::kMicrosecond)
+        ;
+
+    // Should be roughly twice the time of @RebuildHierarchy benchmark
+    BENCHMARK_DEFINE_F(ServerDeepHierarchyBenchmark, RebuildHierarchyRemoveAndAddFirstChild)(benchmark::State& state)
+    {
+        const AZ::EntityId rootId = m_children->front()->m_entity->GetId();
+
+        for ([[maybe_unused]] auto value : state)
+        {
+            m_children->at(1)->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(AZ::EntityId());
+            m_children->at(1)->m_entity->FindComponent<AzFramework::TransformComponent>()->SetParent(rootId);
+        }
+    }
+
+    BENCHMARK_REGISTER_F(ServerDeepHierarchyBenchmark, RebuildHierarchyRemoveAndAddFirstChild)
+        ->Unit(benchmark::kMicrosecond)
+        ;
+}
+
+#endif
diff --git a/Gems/Multiplayer/Code/multiplayer_tests_files.cmake b/Gems/Multiplayer/Code/multiplayer_tests_files.cmake
index 93fb807b66..2114143b68 100644
--- a/Gems/Multiplayer/Code/multiplayer_tests_files.cmake
+++ b/Gems/Multiplayer/Code/multiplayer_tests_files.cmake
@@ -8,7 +8,9 @@
 
 set(FILES
     Tests/ClientHierarchyTests.cpp
+    Tests/ServerHierarchyBenchmarks.cpp
     Tests/CommonHierarchySetup.h
+    Tests/CommonBenchmarkSetup.h
     Tests/IMultiplayerConnectionMock.h
     Tests/Main.cpp
     Tests/MockInterfaces.h