diff --git a/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Window/AtomToolsMainWindow.h b/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Window/AtomToolsMainWindow.h
index 2cc6621cec..edb8ff4322 100644
--- a/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Window/AtomToolsMainWindow.h
+++ b/Gems/Atom/Tools/AtomToolsFramework/Code/Include/AtomToolsFramework/Window/AtomToolsMainWindow.h
@@ -53,6 +53,7 @@ namespace AtomToolsFramework
         QWidget* m_centralWidget = nullptr;
         QMenuBar* m_menuBar = nullptr;
         AzQtComponents::TabWidget* m_tabWidget = nullptr;
+        QStatusBar* m_statusBar = nullptr;
 
         AZStd::unordered_map<AZStd::string, AzQtComponents::StyledDockWidget*> m_dockWidgets;
 
diff --git a/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Window/AtomToolsMainWindow.cpp b/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Window/AtomToolsMainWindow.cpp
index 849169e2e3..ffc618c574 100644
--- a/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Window/AtomToolsMainWindow.cpp
+++ b/Gems/Atom/Tools/AtomToolsFramework/Code/Source/Window/AtomToolsMainWindow.cpp
@@ -31,6 +31,10 @@ namespace AtomToolsFramework
         m_tabWidget->setSizePolicy(QSizePolicy::Ignored, QSizePolicy::Preferred);
         m_tabWidget->setContentsMargins(0, 0, 0, 0);
 
+        m_statusBar = new QStatusBar(this);
+        m_statusBar->setObjectName("StatusBar");
+        statusBar()->addPermanentWidget(m_statusBar, 1);
+
         AtomToolsMainWindowRequestBus::Handler::BusConnect();
     }
 
diff --git a/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.cpp b/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.cpp
index 96a94ebfcc..733a01539e 100644
--- a/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.cpp
+++ b/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.cpp
@@ -101,10 +101,6 @@ namespace MaterialEditor
         m_centralWidget->setLayout(vl);
         setCentralWidget(m_centralWidget);
 
-        m_statusBar = new StatusBarWidget(this);
-        m_statusBar->setObjectName("StatusBar");
-        statusBar()->addPermanentWidget(m_statusBar, 1);
-
         SetupMenu();
         SetupTabs();
 
@@ -245,7 +241,8 @@ namespace MaterialEditor
         const QString documentPath = GetDocumentPath(documentId);
         if (!documentPath.isEmpty())
         {
-            m_statusBar->UpdateStatusInfo(QString("Material opened: %1").arg(documentPath));
+            const QString status = QString("Material closed: %1").arg(documentPath);
+            m_statusBar->setWindowIconText(QString("<font color=\"White\">%1</font>").arg(status));
         }
     }
 
@@ -254,7 +251,8 @@ namespace MaterialEditor
         RemoveTabForDocumentId(documentId);
 
         const QString documentPath = GetDocumentPath(documentId);
-        m_statusBar->UpdateStatusInfo(QString("Material closed: %1").arg(documentPath));
+        const QString status = QString("Material closed: %1").arg(documentPath);
+        m_statusBar->setWindowIconText(QString("<font color=\"White\">%1</font>").arg(status));
     }
 
     void MaterialEditorWindow::OnDocumentModified(const AZ::Uuid& documentId)
@@ -280,7 +278,8 @@ namespace MaterialEditor
         UpdateTabForDocumentId(documentId);
 
         const QString documentPath = GetDocumentPath(documentId);
-        m_statusBar->UpdateStatusInfo(QString("Material saved: %1").arg(documentPath));
+        const QString status = QString("Material closed: %1").arg(documentPath);
+        m_statusBar->setWindowIconText(QString("<font color=\"White\">%1</font>").arg(status));
     }
 
     void MaterialEditorWindow::SetupMenu()
@@ -321,7 +320,8 @@ namespace MaterialEditor
             if (!result)
             {
                 const QString documentPath = GetDocumentPath(documentId);
-                m_statusBar->UpdateStatusError(QString("Failed to save material: %1").arg(documentPath));
+                const QString status = QString("Failed to save material: %1").arg(documentPath);
+                m_statusBar->setWindowIconText(QString("<font color=\"Red\">%1</font>").arg(status));
             }
         }, QKeySequence::Save);
 
@@ -334,7 +334,8 @@ namespace MaterialEditor
                 documentId, AtomToolsFramework::GetSaveFileInfo(documentPath).absoluteFilePath().toUtf8().constData());
             if (!result)
             {
-                m_statusBar->UpdateStatusError(QString("Failed to save material: %1").arg(documentPath));
+                const QString status = QString("Failed to save material: %1").arg(documentPath);
+                m_statusBar->setWindowIconText(QString("<font color=\"Red\">%1</font>").arg(status));
             }
         }, QKeySequence::SaveAs);
 
@@ -347,7 +348,8 @@ namespace MaterialEditor
                 documentId, AtomToolsFramework::GetSaveFileInfo(documentPath).absoluteFilePath().toUtf8().constData());
             if (!result)
             {
-                m_statusBar->UpdateStatusError(QString("Failed to save material: %1").arg(documentPath));
+                const QString status = QString("Failed to save material: %1").arg(documentPath);
+                m_statusBar->setWindowIconText(QString("<font color=\"Red\">%1</font>").arg(status));
             }
         });
 
@@ -356,7 +358,8 @@ namespace MaterialEditor
             MaterialDocumentSystemRequestBus::BroadcastResult(result, &MaterialDocumentSystemRequestBus::Events::SaveAllDocuments);
             if (!result)
             {
-                m_statusBar->UpdateStatusError(QString("Failed to save materials."));
+                const QString status = QString("Failed to save materials.");
+                m_statusBar->setWindowIconText(QString("<font color=\"Red\">%1</font>").arg(status));
             }
         });
 
@@ -401,7 +404,8 @@ namespace MaterialEditor
             if (!result)
             {
                 const QString documentPath = GetDocumentPath(documentId);
-                m_statusBar->UpdateStatusError(QString("Failed to perform Undo in material: %1").arg(documentPath));
+                const QString status = QString("Failed to perform Undo in material: %1").arg(documentPath);
+                m_statusBar->setWindowIconText(QString("<font color=\"Red\">%1</font>").arg(status));
             }
         }, QKeySequence::Undo);
 
@@ -412,7 +416,8 @@ namespace MaterialEditor
             if (!result)
             {
                 const QString documentPath = GetDocumentPath(documentId);
-                m_statusBar->UpdateStatusError(QString("Failed to perform Undo in material: %1").arg(documentPath));
+                const QString status = QString("Failed to perform Undo in material: %1").arg(documentPath);
+                m_statusBar->setWindowIconText(QString("<font color=\"Red\">%1</font>").arg(status));
             }
         }, QKeySequence::Redo);
 
@@ -505,6 +510,10 @@ namespace MaterialEditor
 
         AtomToolsMainWindow::AddTabForDocumentId(documentId);
 
+        // Blocking signals from the tab bar so the currentChanged signal is not sent while a document is already being opened.
+        // This prevents the OnDocumentOpened notification from being sent recursively.
+        const QSignalBlocker blocker(m_tabWidget);
+
         // Create a new tab for the document ID and assign it's label to the file name of the document.
         AZStd::string absolutePath;
         MaterialDocumentRequestBus::EventResult(absolutePath, documentId, &MaterialDocumentRequestBus::Events::GetAbsolutePath);
diff --git a/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.h b/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.h
index a443f04ebe..65c13a094d 100644
--- a/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.h
+++ b/Gems/Atom/Tools/MaterialEditor/Code/Source/Window/MaterialEditorWindow.h
@@ -113,7 +113,5 @@ namespace MaterialEditor
         QMenu* m_menuHelp = {};
         QAction* m_actionHelp = {};
         QAction* m_actionAbout = {};
-
-        StatusBarWidget* m_statusBar = {};
     };
 } // namespace MaterialEditor
diff --git a/Gems/Atom/Tools/MaterialEditor/Code/materialeditorwindow_files.cmake b/Gems/Atom/Tools/MaterialEditor/Code/materialeditorwindow_files.cmake
index f5891a5c2b..caef9916f6 100644
--- a/Gems/Atom/Tools/MaterialEditor/Code/materialeditorwindow_files.cmake
+++ b/Gems/Atom/Tools/MaterialEditor/Code/materialeditorwindow_files.cmake
@@ -42,15 +42,15 @@ set(FILES
     Source/Window/PerformanceMonitor/PerformanceMonitorWidget.cpp
     Source/Window/PerformanceMonitor/PerformanceMonitorWidget.h
     Source/Window/PerformanceMonitor/PerformanceMonitorWidget.ui
+    Source/Window/StatusBar/StatusBarWidget.cpp
+    Source/Window/StatusBar/StatusBarWidget.h
+    Source/Window/StatusBar/StatusBarWidget.ui
     Source/Window/ToolBar/MaterialEditorToolBar.h
     Source/Window/ToolBar/MaterialEditorToolBar.cpp
     Source/Window/ToolBar/ModelPresetComboBox.h
     Source/Window/ToolBar/ModelPresetComboBox.cpp
     Source/Window/ToolBar/LightingPresetComboBox.h
     Source/Window/ToolBar/LightingPresetComboBox.cpp
-    Source/Window/StatusBar/StatusBarWidget.cpp
-    Source/Window/StatusBar/StatusBarWidget.h
-    Source/Window/StatusBar/StatusBarWidget.ui
     Source/Window/MaterialInspector/MaterialInspector.h
     Source/Window/MaterialInspector/MaterialInspector.cpp
     Source/Window/ViewportSettingsInspector/ViewportSettingsInspector.h
diff --git a/Gems/Atom/Tools/ShaderManagementConsole/Code/Source/Window/ShaderManagementConsoleWindow.cpp b/Gems/Atom/Tools/ShaderManagementConsole/Code/Source/Window/ShaderManagementConsoleWindow.cpp
index 05f88655ca..e02ab83597 100644
--- a/Gems/Atom/Tools/ShaderManagementConsole/Code/Source/Window/ShaderManagementConsoleWindow.cpp
+++ b/Gems/Atom/Tools/ShaderManagementConsole/Code/Source/Window/ShaderManagementConsoleWindow.cpp
@@ -303,6 +303,10 @@ namespace ShaderManagementConsole
 
         AtomToolsMainWindow::AddTabForDocumentId(documentId);
 
+        // Blocking signals from the tab bar so the currentChanged signal is not sent while a document is already being opened.
+        // This prevents the OnDocumentOpened notification from being sent recursively.
+        const QSignalBlocker blocker(m_tabWidget);
+
         // Create a new tab for the document ID and assign it's label to the file name of the document.
         AZStd::string absolutePath;
         ShaderManagementConsoleDocumentRequestBus::EventResult(absolutePath, documentId, &ShaderManagementConsoleDocumentRequestBus::Events::GetAbsolutePath);