diff --git a/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Application/AtomToolsApplication.h b/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Application/AtomToolsApplication.h
index 9eaacbfa4f..9449c62de1 100644
--- a/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Application/AtomToolsApplication.h
+++ b/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Application/AtomToolsApplication.h
@@ -16,7 +16,6 @@
 #include <AzCore/UserSettings/UserSettingsProvider.h>
 
 #include <AzFramework/Application/Application.h>
-#include <AzFramework/Asset/AssetSystemBus.h>
 
 #include <AzQtComponents/Application/AzQtApplication.h>
 #include <AzQtComponents/Components/StyleManager.h>
@@ -34,7 +33,6 @@ namespace AtomToolsFramework
         : public AzFramework::Application
         , public AzQtComponents::AzQtApplication
         , protected AzToolsFramework::AssetDatabase::AssetDatabaseRequestsBus::Handler
-        , protected AzFramework::AssetSystemStatusBus::Handler
         , protected AzToolsFramework::EditorPythonConsoleNotificationBus::Handler
         , protected AZ::UserSettingsOwnerRequestBus::Handler
         , protected AtomToolsMainWindowNotificationBus::Handler
@@ -77,11 +75,6 @@ namespace AtomToolsFramework
         void Destroy() override;
         //////////////////////////////////////////////////////////////////////////
 
-        //////////////////////////////////////////////////////////////////////////
-        // AzFramework::AssetSystemStatusBus::Handler overrides...
-        void AssetSystemAvailable() override;
-        //////////////////////////////////////////////////////////////////////////
-
         //////////////////////////////////////////////////////////////////////////
         // AZ::ComponentApplication overrides...
         void QueryApplicationType(AZ::ApplicationTypeQuery& appType) const override;
@@ -107,6 +100,7 @@ namespace AtomToolsFramework
 
         virtual void LoadSettings();
         virtual void UnloadSettings();
+        virtual void ConnectToAssetProcessor();
         virtual void CompileCriticalAssets();
         virtual void ProcessCommandLine(const AZ::CommandLine& commandLine);
 
diff --git a/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Application/AtomToolsApplication.cpp b/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Application/AtomToolsApplication.cpp
index 02248fffd4..791738a06e 100644
--- a/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Application/AtomToolsApplication.cpp
+++ b/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Application/AtomToolsApplication.cpp
@@ -171,7 +171,6 @@ namespace AtomToolsFramework
 
     void AtomToolsApplication::StartCommon(AZ::Entity* systemEntity)
     {
-        AzFramework::AssetSystemStatusBus::Handler::BusConnect();
         AzToolsFramework::EditorPythonConsoleNotificationBus::Handler::BusConnect();
 
         Base::StartCommon(systemEntity);
@@ -179,6 +178,8 @@ namespace AtomToolsFramework
         const bool clearLogFile = GetSettingOrDefault("/O3DE/AtomToolsFramework/Application/ClearLogOnStart", false);
         m_traceLogger.OpenLogFile(GetBuildTargetName() + ".log", clearLogFile);
 
+        ConnectToAssetProcessor();
+
         AzToolsFramework::AssetDatabase::AssetDatabaseRequestsBus::Handler::BusConnect();
         AzToolsFramework::AssetBrowser::AssetDatabaseLocationNotificationBus::Broadcast(
             &AzToolsFramework::AssetBrowser::AssetDatabaseLocationNotifications::OnDatabaseInitialized);
@@ -236,7 +237,7 @@ namespace AtomToolsFramework
         return AZStd::vector<AZStd::string>({});
     }
 
-    void AtomToolsApplication::AssetSystemAvailable()
+    void AtomToolsApplication::ConnectToAssetProcessor()
     {
         bool connectedToAssetProcessor = false;
 
@@ -245,18 +246,19 @@ namespace AtomToolsFramework
         // and able to negotiate a connection when running a debug build
         // and to negotiate a connection
 
-        auto targetName = GetBuildTargetName();
+        const auto targetName = GetBuildTargetName();
 
         AzFramework::AssetSystem::ConnectionSettings connectionSettings;
         AzFramework::AssetSystem::ReadConnectionSettingsFromSettingsRegistry(connectionSettings);
         connectionSettings.m_connectionDirection =
             AzFramework::AssetSystem::ConnectionSettings::ConnectionDirection::ConnectToAssetProcessor;
-        connectionSettings.m_connectionIdentifier = GetBuildTargetName();
+        connectionSettings.m_connectionIdentifier = targetName;
         connectionSettings.m_loggingCallback = [targetName]([[maybe_unused]] AZStd::string_view logData)
         {
             AZ_UNUSED(targetName);  // Prevent unused warning in release builds
             AZ_TracePrintf(targetName.c_str(), "%.*s", aznumeric_cast<int>(logData.size()), logData.data());
         };
+
         AzFramework::AssetSystemRequestBus::BroadcastResult(
             connectedToAssetProcessor, &AzFramework::AssetSystemRequestBus::Events::EstablishAssetProcessorConnection, connectionSettings);
 
@@ -264,8 +266,6 @@ namespace AtomToolsFramework
         {
             CompileCriticalAssets();
         }
-
-        AzFramework::AssetSystemStatusBus::Handler::BusDisconnect();
     }
 
     void AtomToolsApplication::CompileCriticalAssets()
@@ -302,6 +302,7 @@ namespace AtomToolsFramework
         }
 
         AZ::ComponentApplicationLifecycle::SignalEvent(*m_settingsRegistry, "CriticalAssetsCompiled", R"({})");
+
         // Reload the assetcatalog.xml at this point again
         // Start Monitoring Asset changes over the network and load the AssetCatalog
         auto LoadCatalog = [settingsRegistry = m_settingsRegistry.get()](AZ::Data::AssetCatalogRequests* assetCatalogRequests)