diff --git a/Code/Tools/AWSNativeSDKInit/CMakeLists.txt b/Code/Tools/AWSNativeSDKInit/CMakeLists.txt
index 04f61eb924..de3e0008c2 100644
--- a/Code/Tools/AWSNativeSDKInit/CMakeLists.txt
+++ b/Code/Tools/AWSNativeSDKInit/CMakeLists.txt
@@ -25,6 +25,24 @@ ly_add_target(
             AZ::AzCore
 )
 
+ly_add_target(
+    NAME AWSNativeSDKTestLibs STATIC
+    NAMESPACE AZ
+    FILES_CMAKE
+        aws_native_sdk_test_files.cmake
+    INCLUDE_DIRECTORIES
+        PUBLIC
+            include
+            tests/libs
+        PRIVATE
+            source
+    BUILD_DEPENDENCIES
+        PRIVATE
+            3rdParty::AWSNativeSDK::Core
+            AZ::AzCore
+            AZ::AzTest
+)
+
 ################################################################################
 # Tests
 ################################################################################
diff --git a/Code/Tools/AWSNativeSDKInit/aws_native_sdk_test_files.cmake b/Code/Tools/AWSNativeSDKInit/aws_native_sdk_test_files.cmake
new file mode 100644
index 0000000000..17f4b3f6e9
--- /dev/null
+++ b/Code/Tools/AWSNativeSDKInit/aws_native_sdk_test_files.cmake
@@ -0,0 +1,12 @@
+#
+# 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
+#
+#
+
+set(FILES
+    tests/libs/AWSNativeSDKTestManager.cpp
+    tests/libs/AWSNativeSDKTestManager.h
+)
diff --git a/Code/Tools/AWSNativeSDKInit/source/AWSNativeSDKInit.cpp b/Code/Tools/AWSNativeSDKInit/source/AWSNativeSDKInit.cpp
index ca63859945..ca02b4f223 100644
--- a/Code/Tools/AWSNativeSDKInit/source/AWSNativeSDKInit.cpp
+++ b/Code/Tools/AWSNativeSDKInit/source/AWSNativeSDKInit.cpp
@@ -89,5 +89,4 @@ namespace AWSNativeSDKInit
         Platform::CustomizeShutdown();
 #endif // #if defined(PLATFORM_SUPPORTS_AWS_NATIVE_SDK)
     }
-
 }
diff --git a/Code/Tools/AWSNativeSDKInit/tests/libs/AWSNativeSDKTestManager.cpp b/Code/Tools/AWSNativeSDKInit/tests/libs/AWSNativeSDKTestManager.cpp
new file mode 100644
index 0000000000..29300857c1
--- /dev/null
+++ b/Code/Tools/AWSNativeSDKInit/tests/libs/AWSNativeSDKTestManager.cpp
@@ -0,0 +1,45 @@
+/*
+ * 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
+ *
+ */
+
+
+#include <AWSNativeSDKTestManager.h>
+
+#include <AzCore/Module/Environment.h>
+#include <AzTest/Utils.h>
+
+#include <AWSNativeSDKInit/AWSLogSystemInterface.h>
+#include <aws/core/Aws.h>
+#include <aws/core/utils/logging/AWSLogging.h>
+
+namespace AWSNativeSDKTestLibs
+{
+    AZ::EnvironmentVariable<AWSNativeSDKTestManager> AWSNativeSDKTestManager::s_sdkManager = nullptr;
+
+    AWSNativeSDKTestManager::AWSNativeSDKTestManager()
+    {
+        AZ::Test::SetEnv("AWS_DEFAULT_REGION", "us-east-1", 1);
+        m_awsSDKOptions.memoryManagementOptions.memoryManager = &m_memoryManager;
+        Aws::InitAPI(m_awsSDKOptions);
+    }
+
+    AWSNativeSDKTestManager::~AWSNativeSDKTestManager()
+    {
+        Aws::ShutdownAPI(m_awsSDKOptions);
+        AZ::Test::UnsetEnv("AWS_DEFAULT_REGION");
+    }
+
+    void AWSNativeSDKTestManager::Init()
+    {
+        s_sdkManager = AZ::Environment::CreateVariable<AWSNativeSDKTestManager>(AWSNativeSDKTestManager::SdkManagerTag);
+    }
+
+    void AWSNativeSDKTestManager::Shutdown()
+    {
+        s_sdkManager = nullptr;
+    }
+}
diff --git a/Code/Tools/AWSNativeSDKInit/tests/libs/AWSNativeSDKTestManager.h b/Code/Tools/AWSNativeSDKInit/tests/libs/AWSNativeSDKTestManager.h
new file mode 100644
index 0000000000..48e97bb6f8
--- /dev/null
+++ b/Code/Tools/AWSNativeSDKInit/tests/libs/AWSNativeSDKTestManager.h
@@ -0,0 +1,39 @@
+/*
+ * 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
+
+#include <AzCore/Module/Environment.h>
+#include <AzCore/PlatformIncl.h>
+
+#include <AWSNativeSDKInit/AWSMemoryInterface.h>
+
+#include <aws/core/Aws.h>
+
+namespace AWSNativeSDKTestLibs
+{
+    // Entry point for AWSNativeSDK's initialization and shutdown for test environment
+    // Use an AZ::Environment variable to enforce only one init and shutdown
+    class AWSNativeSDKTestManager
+    {
+    public:
+        static constexpr const char SdkManagerTag[] = "TestAWSSDKManager";
+
+        AWSNativeSDKTestManager();
+        ~AWSNativeSDKTestManager();
+
+        static void Init();
+        static void Shutdown();
+
+    private:
+        static AZ::EnvironmentVariable<AWSNativeSDKTestManager> s_sdkManager;
+
+        AWSNativeSDKInit::MemoryManager m_memoryManager;
+        Aws::SDKOptions m_awsSDKOptions;
+    };
+}
diff --git a/Gems/AWSClientAuth/Code/CMakeLists.txt b/Gems/AWSClientAuth/Code/CMakeLists.txt
index ac9d221f07..e34dd702dd 100644
--- a/Gems/AWSClientAuth/Code/CMakeLists.txt
+++ b/Gems/AWSClientAuth/Code/CMakeLists.txt
@@ -106,13 +106,12 @@ if(PAL_TRAIT_BUILD_TESTS_SUPPORTED)
                 3rdParty::AWSNativeSDK::AWSClientAuth
                 AZ::AzCore
                 AZ::AzFramework
-                AZ::AWSNativeSDKInit
+                AZ::AWSNativeSDKTestLibs
                 Gem::AWSClientAuth.Static
                 Gem::AWSCore
                 Gem::HttpRequestor
         RUNTIME_DEPENDENCIES
             Gem::AWSCore
-            AZ::AWSNativeSDKInit
             Gem::HttpRequestor
    )
    ly_add_googletest(
diff --git a/Gems/AWSClientAuth/Code/Tests/AWSClientAuthGemMock.h b/Gems/AWSClientAuth/Code/Tests/AWSClientAuthGemMock.h
index 19314035c4..3bfde09492 100644
--- a/Gems/AWSClientAuth/Code/Tests/AWSClientAuthGemMock.h
+++ b/Gems/AWSClientAuth/Code/Tests/AWSClientAuthGemMock.h
@@ -30,7 +30,7 @@
 #include <AWSCoreBus.h>
 #include <ResourceMapping/AWSResourceMappingBus.h>
 #include <AWSClientAuthBus.h>
-#include <AWSNativeSDKInit/AWSNativeSDKInit.h>
+#include <AWSNativeSDKTestManager.h>
 #include <HttpRequestor/HttpRequestorBus.h>
 
 #include <aws/core/utils/Outcome.h>
@@ -542,7 +542,7 @@ namespace AWSClientAuthUnitTest
             m_jobContext.reset(aznew AZ::JobContext(*m_jobManager, *m_jobCancelGroup));
             AZ::JobContext::SetGlobalContext(m_jobContext.get());
 
-            AWSNativeSDKInit::InitializationManager::InitAwsApi();
+            AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Init();
             m_cognitoIdentityProviderClientMock = std::make_shared<CognitoIdentityProviderClientMock>();
             m_cognitoIdentityClientMock = std::make_shared<CognitoIdentityClientMock>();
         }
@@ -557,8 +557,7 @@ namespace AWSClientAuthUnitTest
             m_cognitoIdentityProviderClientMock.reset();
             m_cognitoIdentityClientMock.reset();
 
-            AWSNativeSDKInit::InitializationManager::Shutdown();
-
+            AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Shutdown();
 
             AZ::AllocatorInstance<AZ::ThreadPoolAllocator>::Destroy();
 
diff --git a/Gems/AWSCore/Code/CMakeLists.txt b/Gems/AWSCore/Code/CMakeLists.txt
index 3911aefce6..bb836b57bd 100644
--- a/Gems/AWSCore/Code/CMakeLists.txt
+++ b/Gems/AWSCore/Code/CMakeLists.txt
@@ -163,7 +163,7 @@ if(PAL_TRAIT_BUILD_TESTS_SUPPORTED)
             PRIVATE
                 AZ::AzTest
                 AZ::AzFramework
-                AZ::AWSNativeSDKInit
+                AZ::AWSNativeSDKTestLibs
                 Gem::AWSCore.Static
     )
 
@@ -202,7 +202,7 @@ if(PAL_TRAIT_BUILD_TESTS_SUPPORTED)
                     3rdParty::Qt::Gui
                     3rdParty::Qt::Widgets
                     AZ::AzTest
-                    AZ::AWSNativeSDKInit
+                    AZ::AWSNativeSDKTestLibs
                     Gem::AWSCore.Static
                     Gem::AWSCore.Editor.Static
         )
diff --git a/Gems/AWSCore/Code/Tests/AWSCoreSystemComponentTest.cpp b/Gems/AWSCore/Code/Tests/AWSCoreSystemComponentTest.cpp
index b66b43f735..74a1588895 100644
--- a/Gems/AWSCore/Code/Tests/AWSCoreSystemComponentTest.cpp
+++ b/Gems/AWSCore/Code/Tests/AWSCoreSystemComponentTest.cpp
@@ -19,7 +19,7 @@
 #include <AzTest/AzTest.h>
 
 #include <AWSCoreSystemComponent.h>
-#include <AWSNativeSDKInit/AWSNativeSDKInit.h>
+#include <AWSNativeSDKTestManager.h>
 #include <Configuration/AWSCoreConfiguration.h>
 #include <Credential/AWSCredentialManager.h>
 #include <Framework/AWSApiJob.h>
@@ -105,7 +105,7 @@ public:
 TEST_F(AWSCoreSystemComponentTest, ComponentActivateTest)
 {
     // Shutdown SDK which is init in fixture setup step
-    AWSNativeSDKInit::InitializationManager::Shutdown();
+    AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Shutdown();
 
     EXPECT_FALSE(m_coreSystemsComponent->IsAWSApiInitialized());
 
diff --git a/Gems/AWSCore/Code/Tests/TestFramework/AWSCoreFixture.h b/Gems/AWSCore/Code/Tests/TestFramework/AWSCoreFixture.h
index 6ea5593d0e..4daf5bb679 100644
--- a/Gems/AWSCore/Code/Tests/TestFramework/AWSCoreFixture.h
+++ b/Gems/AWSCore/Code/Tests/TestFramework/AWSCoreFixture.h
@@ -17,7 +17,7 @@
 #include <Framework/JsonObjectHandler.h>
 #include <Framework/JsonWriter.h>
 
-#include <AWSNativeSDKInit/AWSNativeSDKInit.h>
+#include <AWSNativeSDKTestManager.h>
 
 namespace AWSCoreTestingUtils
 {
@@ -138,7 +138,7 @@ public:
             m_app = AZStd::make_unique<AZ::ComponentApplication>();
         }
 
-        AWSNativeSDKInit::InitializationManager::InitAwsApi();
+        AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Init();
     }
 
     void TearDown() override
@@ -148,7 +148,7 @@ public:
 
     void TearDownFixture(bool mockSettingsRegistry = true) 
     {
-        AWSNativeSDKInit::InitializationManager::Shutdown();
+        AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Shutdown();
 
         if (mockSettingsRegistry)
         {
diff --git a/Gems/AWSGameLift/Code/AWSGameLiftClient/CMakeLists.txt b/Gems/AWSGameLift/Code/AWSGameLiftClient/CMakeLists.txt
index ab85e89f75..bdc831c439 100644
--- a/Gems/AWSGameLift/Code/AWSGameLiftClient/CMakeLists.txt
+++ b/Gems/AWSGameLift/Code/AWSGameLiftClient/CMakeLists.txt
@@ -90,7 +90,7 @@ if(PAL_TRAIT_BUILD_TESTS_SUPPORTED)
                 Gem::AWSCore
                 Gem::AWSGameLift.Client.Static
                 3rdParty::AWSNativeSDK::GameLiftClient
-                AZ::AWSNativeSDKInit
+                AZ::AWSNativeSDKTestLibs
     )
     # Add AWSGameLift.Client.Tests to googletest
     ly_add_googletest(
diff --git a/Gems/AWSGameLift/Code/AWSGameLiftClient/Tests/AWSGameLiftClientFixture.h b/Gems/AWSGameLift/Code/AWSGameLiftClient/Tests/AWSGameLiftClientFixture.h
index 88ddb92531..b1c689baec 100644
--- a/Gems/AWSGameLift/Code/AWSGameLiftClient/Tests/AWSGameLiftClientFixture.h
+++ b/Gems/AWSGameLift/Code/AWSGameLiftClient/Tests/AWSGameLiftClientFixture.h
@@ -8,12 +8,13 @@
 
 #pragma once
 
-#include <AWSNativeSDKInit/AWSNativeSDKInit.h>
+#include <AWSNativeSDKTestManager.h>
 #include <AzCore/Jobs/JobManager.h>
 #include <AzCore/Jobs/JobManagerBus.h>
 #include <AzCore/Jobs/JobContext.h>
 #include <AzCore/Memory/PoolAllocator.h>
 #include <AzCore/UnitTest/TestTypes.h>
+#include <AzTest/Utils.h>
 
 class AWSGameLiftClientFixture
     : public UnitTest::ScopedAllocatorSetupFixture
@@ -38,12 +39,12 @@ public:
         m_jobContext.reset(aznew AZ::JobContext(*m_jobManager, *m_jobCancelGroup));
         AZ::JobContext::SetGlobalContext(m_jobContext.get());
 
-        AWSNativeSDKInit::InitializationManager::InitAwsApi();
+        AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Init();
     }
 
     void TearDown() override
     {
-        AWSNativeSDKInit::InitializationManager::Shutdown();
+        AWSNativeSDKTestLibs::AWSNativeSDKTestManager::Shutdown();
 
         AZ::JobContext::SetGlobalContext(nullptr);
         m_jobContext.reset();