diff --git a/Gems/Terrain/Code/Tests/SurfaceMaterialsListTest.cpp b/Gems/Terrain/Code/Tests/SurfaceMaterialsListTest.cpp
index fb70b1366f..cc1af8bf62 100644
--- a/Gems/Terrain/Code/Tests/SurfaceMaterialsListTest.cpp
+++ b/Gems/Terrain/Code/Tests/SurfaceMaterialsListTest.cpp
@@ -33,10 +33,16 @@ namespace UnitTest
             m_app.Create(appDesc);
         }
 
-        AZStd::unique_ptr<AZ::Entity> CreateEntityWithShapeComponents()
+        AZStd::unique_ptr<AZ::Entity> CreateEntity()
         {
             auto entity = AZStd::make_unique<AZ::Entity>();
             entity->Init();
+            return entity;
+        }
+
+        AZStd::unique_ptr<AZ::Entity> CreateEntityWithShapeComponents()
+        {
+            auto entity = CreateEntity();
 
             auto shapeComponent = entity->CreateComponent<UnitTest::MockAxisAlignedBoxShapeComponent>();
             m_app.RegisterComponentDescriptor(shapeComponent->CreateDescriptor());
@@ -58,6 +64,19 @@ namespace UnitTest
         }
     };
 
+    TEST_F(TerrainSurfaceMaterialsListTest, SurfaceGradientListRequiresShapeToActivate)
+    {
+        auto entity = CreateEntity();
+
+        AddSurfaceMaterialListComponent(entity.get());
+
+        entity->Activate();
+
+        EXPECT_EQ(entity->GetState(), AZ::Entity::State::Active);
+
+        entity.reset();
+    }
+
     TEST_F(TerrainSurfaceMaterialsListTest, SurfaceGradientListActivatesSuccessfully)
     {
         auto entity = CreateEntityWithShapeComponents();