diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomUtils.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomUtils.cpp
index ea0fa55256..a84d6bf706 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomUtils.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabDomUtils.cpp
@@ -262,7 +262,7 @@ namespace AzToolsFramework
 
                         if (assetId.IsValid())
                         {
-                            asset.Create(assetId, true);
+                            asset.Create(assetId, false);
                         }
                     }
                 };