diff --git a/Gems/Multiplayer/Code/Source/Components/NetworkTransformComponent.cpp b/Gems/Multiplayer/Code/Source/Components/NetworkTransformComponent.cpp
index f03d12343f..bd1e1bf0d9 100644
--- a/Gems/Multiplayer/Code/Source/Components/NetworkTransformComponent.cpp
+++ b/Gems/Multiplayer/Code/Source/Components/NetworkTransformComponent.cpp
@@ -14,7 +14,7 @@
 
 namespace Multiplayer
 {
-    void NetworkTransformComponent::NetworkTransformComponent::Reflect(AZ::ReflectContext* context)
+    void NetworkTransformComponent::Reflect(AZ::ReflectContext* context)
     {
         AZ::SerializeContext* serializeContext = azrtti_cast<AZ::SerializeContext*>(context);
         if (serializeContext)
@@ -43,6 +43,11 @@ namespace Multiplayer
         GetNetBindComponent()->AddEntityPreRenderEventHandler(m_entityPreRenderEventHandler);
         GetNetBindComponent()->AddEntityCorrectionEventHandler(m_entityCorrectionEventHandler);
         ParentEntityIdAddEvent(m_parentChangedEventHandler);
+
+        if (!HasController())
+        {
+            OnParentChanged(GetParentEntityId());
+        }
     }
 
     void NetworkTransformComponent::OnDeactivate([[maybe_unused]] Multiplayer::EntityIsMigrating entityIsMigrating)
@@ -123,17 +128,20 @@ namespace Multiplayer
 
     void NetworkTransformComponent::OnParentChanged(NetEntityId parentId)
     {
-        const ConstNetworkEntityHandle parentEntityHandle = GetNetworkEntityManager()->GetEntity(parentId);
-        if (parentEntityHandle.Exists())
+        if (AZ::TransformInterface* transformComponent = GetEntity()->GetTransform())
         {
-            if (const AZ::Entity* parentEntity = parentEntityHandle.GetEntity())
+            const ConstNetworkEntityHandle parentEntityHandle = GetNetworkEntityManager()->GetEntity(parentId);
+            if (parentEntityHandle.Exists())
             {
-                GetEntity()->GetTransform()->SetParent(parentEntity->GetId());
+                if (const AZ::Entity* parentEntity = parentEntityHandle.GetEntity())
+                {
+                    transformComponent->SetParent(parentEntity->GetId());
+                }
+            }
+            else
+            {
+                transformComponent->SetParent(AZ::EntityId());
             }
-        }
-        else
-        {
-            GetEntity()->GetTransform()->SetParent(AZ::EntityId());
         }
     }
 
diff --git a/Gems/Multiplayer/Code/Tests/NetworkTransformTests.cpp b/Gems/Multiplayer/Code/Tests/NetworkTransformTests.cpp
index 7ea7ea6974..94cb94e000 100644
--- a/Gems/Multiplayer/Code/Tests/NetworkTransformTests.cpp
+++ b/Gems/Multiplayer/Code/Tests/NetworkTransformTests.cpp
@@ -211,9 +211,6 @@ namespace Multiplayer
             const NetworkEntityHandle rootHandle(root.m_entity.get(), m_networkEntityTracker.get());
             root.m_replicator = AZStd::make_unique<EntityReplicator>(*m_entityReplicationManager, m_mockConnection.get(), NetEntityRole::Authority, rootHandle);
             root.m_replicator->Initialize(rootHandle);
-
-            root.m_entity->Activate();
-            child.m_entity->Activate();
         }
 
         AZStd::unique_ptr<EntityInfo> m_root;
@@ -228,6 +225,9 @@ namespace Multiplayer
 
     TEST_F(ClientNetTransformTests, ClientSetsLocalTmWhenParentIsSet)
     {
+        m_root->m_entity->Activate();
+        m_child->m_entity->Activate();
+
         SetTranslationOnNetworkTransform(m_root->m_entity, AZ::Vector3::CreateOne());
 
         SetParentIdOnNetworkTransform(m_child->m_entity, NetEntityId{ 1 });
@@ -249,6 +249,9 @@ namespace Multiplayer
 
     TEST_F(ClientNetTransformTests, ClientSetsWorldTmWhenParentIsNotSet)
     {
+        m_root->m_entity->Activate();
+        m_child->m_entity->Activate();
+
         SetTranslationOnNetworkTransform(m_root->m_entity, AZ::Vector3::CreateOne());
         SetTranslationOnNetworkTransform(m_child->m_entity, AZ::Vector3::CreateZero());
 
@@ -268,6 +271,9 @@ namespace Multiplayer
 
     TEST_F(ClientNetTransformTests, ChildFollowsWhenParentMovesOnServer)
     {
+        m_root->m_entity->Activate();
+        m_child->m_entity->Activate();
+
         SetTranslationOnNetworkTransform(m_root->m_entity, AZ::Vector3::CreateOne());
 
         SetParentIdOnNetworkTransform(m_child->m_entity, NetEntityId{ 1 });
@@ -290,4 +296,25 @@ namespace Multiplayer
             AZ::Vector3::CreateZero()
         );
     }
+
+    TEST_F(ClientNetTransformTests, ChildAttachesToParentIfParentIdIsSetBeforeActivation)
+    {
+        m_root->m_entity->Activate();
+
+        SetTranslationOnNetworkTransform(m_root->m_entity, AZ::Vector3::CreateOne());
+
+        SetParentIdOnNetworkTransform(m_child->m_entity, NetEntityId{ 1 });
+        SetTranslationOnNetworkTransform(m_child->m_entity, AZ::Vector3::CreateZero());
+
+        m_child->m_entity->Activate();
+
+        AZ::EntityBus::Broadcast(&AZ::EntityBus::Events::OnEntityActivated, m_root->m_entity->GetId());
+
+        MultiplayerTick();
+
+        EXPECT_EQ(
+            m_child->m_entity->FindComponent<AzFramework::TransformComponent>()->GetParentId(),
+            AZ::EntityId(1)
+        );
+    }
 }