diff --git a/AutomatedTesting/Gem/PythonTests/EditorPythonTestTools/editor_python_test_tools/hydra_editor_utils.py b/AutomatedTesting/Gem/PythonTests/EditorPythonTestTools/editor_python_test_tools/hydra_editor_utils.py
index 985e32ede5..19aa6e9d3c 100644
--- a/AutomatedTesting/Gem/PythonTests/EditorPythonTestTools/editor_python_test_tools/hydra_editor_utils.py
+++ b/AutomatedTesting/Gem/PythonTests/EditorPythonTestTools/editor_python_test_tools/hydra_editor_utils.py
@@ -57,6 +57,10 @@ def add_level_component(component_name):
                                                                  level_component_list, entity.EntityType().Level)
     level_component_outcome = editor.EditorLevelComponentAPIBus(bus.Broadcast, 'AddComponentsOfType',
                                                                 [level_component_type_ids_list[0]])
+    if not level_component_outcome.IsSuccess():
+        print('Failed to add {} level component'.format(component_name))
+        return None
+
     level_component = level_component_outcome.GetValue()[0]
     return level_component
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Application/ToolsApplication.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Application/ToolsApplication.cpp
index 056872edab..d3b3b09583 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Application/ToolsApplication.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Application/ToolsApplication.cpp
@@ -1196,14 +1196,25 @@ namespace AzToolsFramework
 
     AZ::EntityId ToolsApplication::GetCurrentLevelEntityId()
     {
-        AzFramework::EntityContextId editorEntityContextId = AzFramework::EntityContextId::CreateNull();
-        AzToolsFramework::EditorEntityContextRequestBus::BroadcastResult(editorEntityContextId, &AzToolsFramework::EditorEntityContextRequestBus::Events::GetEditorEntityContextId);
-        AZ::SliceComponent* rootSliceComponent = nullptr;
-        AzFramework::SliceEntityOwnershipServiceRequestBus::EventResult(rootSliceComponent, editorEntityContextId,
-            &AzFramework::SliceEntityOwnershipServiceRequestBus::Events::GetRootSlice);
-        if (rootSliceComponent && rootSliceComponent->GetMetadataEntity())
-        {
-            return rootSliceComponent->GetMetadataEntity()->GetId();
+        if (IsPrefabSystemEnabled())
+        {
+            if (auto prefabPublicInterface = AZ::Interface<Prefab::PrefabPublicInterface>::Get())
+            {
+                return prefabPublicInterface->GetLevelInstanceContainerEntityId();
+            }
+        }
+        else
+        {
+            AzFramework::EntityContextId editorEntityContextId = AzFramework::EntityContextId::CreateNull();
+            AzToolsFramework::EditorEntityContextRequestBus::BroadcastResult(
+                editorEntityContextId, &AzToolsFramework::EditorEntityContextRequestBus::Events::GetEditorEntityContextId);
+            AZ::SliceComponent* rootSliceComponent = nullptr;
+            AzFramework::SliceEntityOwnershipServiceRequestBus::EventResult(
+                rootSliceComponent, editorEntityContextId, &AzFramework::SliceEntityOwnershipServiceRequestBus::Events::GetRootSlice);
+            if (rootSliceComponent && rootSliceComponent->GetMetadataEntity())
+            {
+                return rootSliceComponent->GetMetadataEntity()->GetId();
+            }
         }
 
         return AZ::EntityId();